Asset Payback Period
The Asset Payback Period measures the exact number of days required for an in-game NFT asset to recover its initial purchase cost through net daily yield. It equals Asset Purchase Cost divided by Net Daily Yield, evaluated alongside a 50% token price decline stress test.
Defined by Sean Sandoval in The P2E Bible (Buy One Media LLC, 2026), Ch. 4 (p. 85). Cite as: Sandoval, Sean. "Asset Payback Period." The P2E Bible, 2026, Ch. 4 (p. 85).
Formal Notation & Variable Definitions
| Symbol | Variable Name | Unit | Description |
|---|---|---|---|
| P_D | Payback Period | Days | Days required to achieve 100% principal cost recovery |
| C_A | Asset Cost | USD | Initial purchase price of NFT or entry asset |
| Y_D | Net Daily Yield | USD / Day | Daily net earnings after gas and maintenance fees |
The Formula & 50% Stress Test
Standard Payback: P_D = C_A ÷ Y_D
Stress-Tested Payback: P_S = C_A ÷ (Y_D × 0.50). Always evaluate payback under a 50% token price drop to ensure principal recovery within the game's lockup cycle.
Worked Example
An NFT character costs $300 (C_A) and yields $10/day net (Y_D). Standard payback = $300 ÷ $10 = 30 days.
Under a 50% token price crash, daily yield falls to $5/day. Stressed payback = $300 ÷ $5 = 60 days.
FAQ
Why run a 50% token price decline stress test?
Web3 game tokens experience high volatility. Testing payback at a 50% lower price prevents over-estimating capital efficiency.