# Economic System

The Factory project aims to build a brand-new ecosystem by endorsing NFTs across different projects, where each NFT can serve as a component for other NFTs. This not only forms a bond of interest but also constructs a complex network of benefits.

<figure><img src="https://1960723384-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXWzVMC29LVQxDfwMRBiv%2Fuploads%2Ftbbkd2OYyIUwZzs28wS3%2FR02.png?alt=media&#x26;token=4b366e5e-142f-41f8-b780-cefb9c24ae7b" alt=""><figcaption></figcaption></figure>

* **Project Creator A** issued an ERC20 token - Iron.
* **Project Creator B** issued another ERC20 token - Wood.
* **Project Creator C** used Iron and Wood on the Factory platform to create a blueprint for the "Iron Axe". Users can synthesize the product "Iron Axe" using Iron, Wood, and this blueprint.
* **Project Creator D** used Iron on the Factory platform to create a blueprint for the "Iron Pickaxe". Users can synthesize the product "Iron Pickaxe" using Iron and this blueprint.
* **Project Creator A** launched a DeFi staking mining project on their website, where players can stake Iron Pickaxes to obtain Iron.
* **Project Creator B** used Wood to launch another DeFi staking mining project on their website, where players can stake Iron Axes to obtain Wood. In the examples above, Project Creators A and B supply the raw materials, while C and D produce and sell products based on these materials, which in turn can be used to obtain raw materials provided by A and B. The raw materials from A and B are utilized by users of C and D, thereby generating value; the products from C and D are accepted by users because they can obtain raw materials issued by A and B. This is just the most basic and initial economic cycle model. In actual operation, as more project creators join, the economic system can become much more complex. Longer economic chains and a richer ecosystem can keep each raw material or product valuable for longer. To participate in the economic cycle with their raw materials or products, each project creator needs to cede benefits to other project creators and users to gain broader consensus.\
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  **Meanwhile, this open economic system includes the following participants:**
* **Raw Material Providers:** Responsible for producing raw materials.
* **Producers:** Responsible for manufacturing tools.
* **Users:** Purchase and use the tools produced to harvest raw materials.

<figure><img src="https://1960723384-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXWzVMC29LVQxDfwMRBiv%2Fuploads%2FoUmfcegMz8G9xnooFz2n%2FR01.png?alt=media&#x26;token=82a23e4f-7b1c-4e3d-90c7-2a86c3027fc3" alt=""><figcaption></figcaption></figure>

This forms an economic cycle. The economic system is a way of social production collaboration. The internal economic systems of current online games and blockchain games, usually dictated by the game companies from top to bottom, have issues with rationality, scalability, sustainability, and distribution of benefits. The Factory project attempts to create a new type of economic system where raw material producers, tool manufacturers, and users can compromise and depend on each other based on actual situations, forming a true social economic system.
