I am working on a project that involves points. The idea is that users will earn points and redeem them for certain rewards.
The means via which the users earn are fairly limited (They can attend a seminar, a class, etc).
I want to make sure that once the circulation of points increases, we want to employ an inflation model that increases the prices of the items.
I am a complete newbie to economics and have no clue how can this be achieved.
My initial attempts consist of models where the prices increase flatly with respect to the circulation amount - but that wouldn't be fair for people who haven't made any significant contribution to the circulation.
Second thought was to take into consideration the "average" increase in the users' income over a period and increase by that fator. But that is when it hit me - that way, the target prices will keep on increasing and no users will be able to redeem any rewards.
Should I explore per-capita income route? Is there a "text-book" model that I can read about and potentially implement to make a fair system that also motivates people to increase their income?