> For the complete documentation index, see [llms.txt](https://docs.playstoken.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.playstoken.com/tokenomics/usdgems.md).

# $GEMS

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$GEMS is a secondary currency within the Plays Ecosystem pegged to the US Dollar. In addition to $PLAYS, players will be able to use $GEMS to make purchases in our games, and websites or make trades on the Plays Marketplace.
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$GEMS is an easy-to-understand concept for Web2 players. It can be purchased with Credit and Debit cards and is always accepted 1:1 to the US Dollar.
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Game developers might not want to use a volatile token as either the purchaser currency of in-game assets or as play-to-earn rewards as it can make it difficult to accurately price products. The creation of $GEMS within the Plays Ecosystem is to mitigate the risks associated with this volatility, which is a common concern for game developers and players alike. Let's explore why this approach is beneficial and how it functions within the Plays Gaming Ecosystem.

## Stability in an Unpredictable Market

Cryptocurrencies are known for their rapid price fluctuations, which can be a double-edged sword. On one hand, the potential for high returns on investment is attractive; on the other, the unpredictability makes financial planning challenging. For game developers, especially, those who need to budget for ongoing projects, salaries, and other expenses, volatility can pose a significant risk. Using a volatile token for transactions or as rewards in play-to-earn models can complicate revenue forecasts and financial stability. It can also be challenging for Web2 Players to purchase microtransactions, NFTs, and in-game assets with a fluctuating cryptocurrency as they need to continuously monitor price changes.

## GEMS: A Stable Solution

$GEMS addresses these challenges by offering a stablecoin solution pegged to the US Dollar. This pegging means that 1 GEM is always equivalent to 1 USD, providing a predictable and stable value. For developers within the Plays Ecosystem, this stability offers several advantages:

* **Predictable Revenue Streams**: Developers can better forecast their earnings from in-game purchases, as the value of $GEMS does not fluctuate wildly like other cryptocurrencies.
* **Attracting a Wider Audience**: Players who might be hesitant to engage with volatile cryptocurrencies are more likely to participate in a gaming economy powered by a stablecoin. This inclusivity can lead to a larger player base and, consequently, higher revenues.
* **Reduced Risk**: Both players and developers are shielded from the market volatility that affects other cryptocurrencies. This reduces the financial risk associated with participating in the Plays Ecosystem.
* **No added complexity:** Traditional Web2 players don't have to interact with the blockchain themselves in the games to use $GEMS.

## Implementation in the Plays Ecosystem

Implementing $GEMS within the Plays Ecosystem involves integrating it into our various products.

* **In-Game Transactions**: Players can use $GEMS to purchase in-game assets, such as skins, weapons, or any digital goods offered by the game. This provides a straightforward transaction process without the need for constant price adjustments due to fluctuating market values.
* **Play-to-Earn Rewards**: Rewards granted in $GEMS offer real-world value that is easy to understand and use, making the play-to-earn model more appealing and accessible.
* **Cross-Game Economy**: $GEMS can facilitate a cross-game economy within the Plays Ecosystem, where assets and currencies can be traded or used across different games.
* **Stable Value:** $GEMS is always accepted 1:1 to the USD for all products and services within the ecosystem.
* **$GEMS is an ERC20 token:** Despite all of the above $GEMS is still a cryptocurrency that can be integrated into Web3 games.

## $GEMS Supply Dynamics

$GEMS can only be created through buying lootboxes and locking $PLAYS in the $GEMS emission staking contract. This effectively keeps emissions stable and puts $GEMS directly into the hands of the community. There is no other way for $GEMS to enter the market. 

On the other hand, $GEMS collected through our products, services, and $GEM fees collected through our marketplace are burned. This circular mechanism will always keep the circulating $GEMS at the ideal amount, that meets user demand without oversaturating the market and thus depegging it from the USD Dollar.

There are several ways you can get $GEMS:

1. Stake $PLAYS in the $GEMS emission staking contract. For more information about staking [head to the staking page](/tokenomics/staking-soon.md).
2. Buy lootboxes as one of the rewards are $GEMS.
3. Buy $GEMS directly in Plays Ecosystem games and websites via Debit/Credit card.
4. ~~Buy $GEMS on the open market through a DEX such as Uniswap. (In the future!)~~