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ECONOMY5 MIN READ

How to Master Your Mobile Game Economy: Sources, Sinks & Soft Currency

Every coin you hand out is a promise. Here is how to balance sources and sinks, avoid inflation, and test your numbers before players do.

VladGame Designer ·
KEY TAKEAWAYS
  • Your economy is the balance of sources (currency in) and sinks (currency out) over time.
  • Most economies inflate because sources are fun to add and sinks are not.
  • Keep soft currency plentiful, hard currency scarce, and event currency temporary.
  • Track median wallet balance and time-to-afford weekly.

Every coin your game hands out is a promise. Hand out too many and nothing feels valuable. Hand out too few and players feel robbed. A healthy game economy keeps that promise for years, and it comes down to one idea: what flows in must flow out.

Sources and sinks

A source is anything that creates currency: level rewards, daily login bonuses, rewarded ads, achievements. A sink is anything that removes it: upgrades, cosmetics, retries, crafting, energy refills. Your economy is the balance between the two over time. Try it below: tune what a player earns, what things cost and how often they buy.

INTERACTIVE · 30-DAY ECONOMY SIMULATORSTARVED
07501.5k2.3k3kD0D7D14D21D30UPGRADE PRICE
DAY 30 WALLET1,200UPGRADES BOUGHT4
0

Why most economies inflate

Sources are easy to add and fun to announce. Sinks feel like taxes, so teams avoid them. Over a few content updates the wallet of an engaged player climbs, prices stop mattering, and the store loses its pull. Once players are hoarding, every reward you give feels smaller.

WARNING SIGNS
  • Median wallet balance growing week over week.
  • Store conversion dropping while engagement holds steady.
  • Players skipping rewarded ads because they don't need the coins.
  • New content consumed within a day of release.

Soft, hard and event currencies

CURRENCYHOW IT IS EARNEDWHAT IT IS FOR
Soft (coins)Gameplay, frequentlyUpgrades, consumables, repeatable sinks
Hard (gems)Rarely in play, mostly purchasedTime skips, premium cosmetics, passes
Event tokensLimited-time events onlyEvent shop, expires when the event ends

Keep soft currency plentiful and spendable. Keep hard currency scarce and predictable. Event currencies are a pressure valve: they create spending urgency without touching your core economy.

Design sinks players actually want

  • Cosmetics that show status to other players.
  • Upgrades with visible, felt power gains.
  • Convenience (timer skips, extra slots) priced fairly.
  • Collection sets that reward completion.
  • Continues offered at the moment of highest emotion.

Measure it

Track currency earned and spent per daily active user by source and sink, median wallet balance by player segment, and time-to-afford for your key items. Review weekly. Economies drift slowly, then break suddenly.

Median wallet balance after updatesILLUSTRATIVE MODEL
02.5k5k7.5k10kW1W2W3W4W5W6W7W8
Sinks added each updateSources only
RELATED READMobile Game Monetization in 2026: IAP, Ads and Hybrid Models

Frequently asked questions

A sink is any mechanic that removes currency from circulation, such as upgrades, cosmetics, crafting costs, retries or repairs. Sinks keep currency valuable.

Most free-to-play games use a soft currency earned through play and a hard currency that is mostly purchased. Two currencies let you reward play generously while protecting premium value.

Introduce desirable sinks (cosmetics, collections, prestige systems), add event currencies that expire, and slow new sources. Avoid taking currency away directly; players read that as punishment.

SOURCES & FURTHER READING
  1. 01Machinations: visual game economy modelling ↗
  2. 02Game Developer: design articles ↗
#game economy design#mobile game economy#sources and sinks#soft currency#virtual currency balancing
WRITTEN BYVlad, Game Designer at Hoodie Games

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