> For the complete documentation index, see [llms.txt](https://ludo-cities.gitbook.io/ludo-cities-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ludo-cities.gitbook.io/ludo-cities-whitepaper/economics/tokenomics.md).

# Tokenomics

### Token Overview

Token Name: Ludo Cities Token\
Ticker: LUDC\
Network: Solana\
Type: SPL Utility + Reward Token\
Total Supply: To be finalized prior to TGE\
Primary Use Cases: Gameplay, upgrades, marketplace, rewards, governance-light

LUDC serves as the fundamental economic layer of the Ludo Cities ecosystem. It is designed to incentivize gameplay, reward engagement, support city ownership, and sustain a balanced long-term economic model.

***

### Token Allocation

A balanced distribution ensures sustainability, decentralization, and long-term growth. 

#### Proposed Allocation

* Ecosystem & Growth Fund — 15%\
  Partnerships, integrations, marketing, guild onboarding, creator programs.
* Team & Founders — 20%\
  Locked with multi-year vesting to ensure long-term alignment.
* Tressury — 10%

  To maintain the running cost of the game
* Community & Airdrops — 5%\
  Early adopters, onboarding incentives, user acquisition programs.

***

### Utility Model

LUDC has deep, multi-layered utility inside the game economy:

#### 1 Gameplay Utility

* Tournament entry fees
* PvP staking
* Crafting and purchasing in-game boosts
* Seasonal pass unlocks
* Cosmetic and skin purchases

#### 2 NFT Integration

* Upgrading Ludo City NFTs
* Unlocking new city features
* Hosting paid tournaments
* Enhancing city multipliers for earnings

#### 3 Marketplace Utility

* Buying/selling in-game items
* Trading digital assets
* Renting city access or hosting slots

***

### Token Sinks (Burn Mechanisms)

To maintain sustainable supply, LUDC includes built-in deflationary utilities:

* City NFT upgrades (burns a fixed or dynamic amount)
* Tournament fee burns (percentage of all entries burned)
* Marketplace fee burns
* Crafting, boosts, and special event burns

These mechanisms ensure that as player activity rises, LUDC becomes scarcer.

***

### Token Sources

Token issuance is tied to measurable, value-generating activities:

* Tournament rewards
* PvP winnings
* Seasonal missions
* Achievements & competitive rankings
* Ecosystem grants

Reward distribution is algorithmically controlled to ensure long-term stability.

***

### Monetary Policy

LUDC follows a semi-deflationary model:

* Rewards are capped and decrease slowly over time
* Token sinks scale with user activity
* Seasonal burns maintain token scarcity
* Treasury tools support liquidity and stability

This approach prevents runaway inflation and aligns growth with real user demand.

***

### Economic Sustainability

The economy is designed to balance:

* Player earnings
* Investor confidence
* City owner incentives
* Marketplace activity
* Upgrade and burn cycles

By combining limited supply, active burn mechanics, and utility-driven demand, LUDC aims to create a sustainable and player-driven economic system.

***

### Long-Term Vision

LUDC is built to power a scalable, cross-platform gaming economy where:

* Skill-based gameplay is rewarded
* City NFT owners operate digital micro-economies
* Tokens gain intrinsic demand from upgrades and events
* Community governance gradually expands

LUDC is not just a reward token, it is the economic engine that fuels the growth of Ludo Cities for years to come.

<br>