Reward Dilution and Inflation in Live-Service Products
Reward dilution and inflation describe a structural dynamic in live-service products where the perceived value of rewards declines over time due to increasing frequency, predictability, or saturation. Unlike early-stage reward systems that rely on scarcity and novelty, mature live-service architectures often compensate for declining engagement by accelerating reward delivery. This paper analyzes reward inflation not as a balancing problem or content pacing issue, but as a systemic consequence of engagement-driven product models. By examining how reward value erodes through repetition, scaling, and escalation, the analysis frames reward…






