# Tokenomics

**Economy Overview**

The Veaverse will feature a single-token economy using a token called $EVA that empowers player ownership within the game. Players will spend the token crafting new NFTs, acquiring and upgrading player-owned land, creating User-Generated Content (U.G.C.), and activating Battlepasses for exclusive rewards.

$EVA spent in-game will be used to fuel the weekly earnings pool for Veatar players, fund the studio's growth and future competitive tournament prize pools.

**Core Economy Loop**

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**Sustainable Economy Design**

The Veaverse economy is built for players to meaningfully share in the value they create by playing a game they love. For this to be sustainable, there must be a zero-sum correlation between the value input into the game, and the value received playing the game. This is a fundamental difference between Veaverse and many tokenized game titles and is necessary for the sustainable growth of the game economy.

The payout mechanism for the $EVA token is based on the in-game revenue (both in $EVA and FIAT) Magicalbound makes from players in the Veaverse and subsidies from the Play + Earn pool to create meaningful rewards. This earning loop is gamified by creating an intermediary currency called Stars. The Star feature is designed to help stimulate and stabilize the token economy as new players enter the Veaverse.

**Tokenomics - The Star Feature**

Veatar holders can discover Stars by simply playing the Veaverse. All players are able to earn Stars by participating in the Vea Games, a series of skill-based competitive gaming tournaments.

Every week up to 50% of in-game sales are allocated to the $EVA token reward pool for the following week. The remaining income goes to Magicalbound to fund the studio and enables us to improve and expand upon the Veaverse. As our player base and in-game revenue streams grow, these percentages will shift in favor of players, meaning a more significant portion will go to the weekly reward pool, and Magicalbound will take a reduced cut.

The Play + Earn token pool will subsidize both the weekly $EVA token rewards pool and the Vea Games tournament rewards. This subsidy is designed to reward early adopters and players while helping scale the Veaverse over time.

Additionally, weekly Star discovery milestones will push the community to unlock the full allocation of the $EVA reward pool. A player's personal $EVA payout will depend on how many Stars the individual player collected compared to the total number of Stars found by all players.

Star Milestones encourage the growth of the Veaverse community. The more players actively engage in the Veaverse, the larger the weekly $EVA token rewards pool will be for players who have discovered stars.

Stars are also discoverable through the Battlepass feature.
