> For the complete documentation index, see [llms.txt](https://heroarenagame.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://heroarenagame.gitbook.io/docs/7.-tokenomics.md).

# 7. Tokenomics

### 7.1 Design principles

HAP is designed as the coordination and utility asset of the Hero Arena Play competitive ecosystem. The revised model follows five principles:

1. Game-first demand: token utility must come from gameplay, recurring World Cup events, digital assets, and ecosystem participation rather than passive speculation.
2. Controlled circulation: only tokens actually transferable at TGE count as circulating supply. Tokens reserved for future liquidity, listings, rewards, or operations are excluded until deployed or distributed.
3. Performance-based emissions: player and staking rewards are maximum budgets, not automatic monthly distributions.
4. Sustainable revenue: the company must retain stablecoin revenue for development, compliance, security, and live operations before any discretionary buyback.
5. Compliance-gated expansion: paid entry, wagering, and value-bearing prediction features launch only where legally permitted and after the required KYC/AML and jurisdictional controls are implemented.

### 7.2. Token overview

| Property                       |                                 Proposed value |
| ------------------------------ | ---------------------------------------------: |
| Token name                     |                                Hero Arena Play |
| Ticker                         |                                            HAP |
| Standard                       |                            BEP-20 on BNB Chain |
| Total supply                   |                              1,000,000,000 HAP |
| Supply policy                  |               Fixed hard cap; no mint function |
| Decimals                       |                                             18 |
| Burn function                  |                                            Yes |
| Indicative public IDO price    |                                US$0.01 per HAP |
| Indicative public IDO FDV      |                                  US$10,000,000 |
| Indicative public IDO hard cap |                               Up to US$400,000 |
| Initial DEX                    |                       PancakeSwap on BNB Chain |
| Initial DEX reference price    | Same as final IDO price; no guaranteed premium |

The IDO price, hard cap, valuation, and launch date are indicative parameters for discussion. They become final only when recorded in signed launch documents.

### 7.3. Proposed token distribution

| Allocation                 |        % |               HAP | Purpose                                                               |
| -------------------------- | -------: | ----------------: | --------------------------------------------------------------------- |
| Public IDO                 |     4.0% |        40,000,000 | Kommunitas, Spores and other approved public launch                   |
| Strategic / Incubator      |     1.5% |        15,000,000 | Strategic investors and incubation partners                           |
| Liquidity & Listings       |     5.0% |        50,000,000 | Initial DEX liquidity and future approved liquidity/listing needs     |
| Player & World Cup Rewards |    28.0% |       280,000,000 | PvP, PvE, seasons, qualifiers, World Cup prizes, creator competitions |
| Staking Rewards            |     6.0% |        60,000,000 | Time-limited ecosystem participation incentives                       |
| Ecosystem & Partnerships   |    12.5% |       125,000,000 | Integrations, studios, creators, communities, distribution partners   |
| Team                       |    15.0% |       150,000,000 | Core team alignment and long-term execution                           |
| Advisors                   |     2.0% |        20,000,000 | Strategic, gaming, legal, economic, and growth advisors               |
| Treasury / Reserve         |    15.0% |       150,000,000 | Product runway, security, legal, emergency, and strategic reserves    |
| Marketing & Growth         |     7.0% |        70,000,000 | Measurable acquisition, launch campaigns, and regional growth         |
| Community & Early Users    |     4.0% |        40,000,000 | Testnet users, quests, contributors, and community programs           |
| **Total**                  | **100%** | **1,000,000,000** |                                                                       |

#### Allocation controls

* Strategic / Incubator tokens are issued only against signed investment or service agreements.
* Undeployed Liquidity & Listings tokens remain in a disclosed multi-signature reserve and are not counted as circulating supply.
* Treasury, Ecosystem, Marketing, and Community wallets use disclosed multi-signature control.
* Material treasury movements are reported publicly after TGE.

### 7.4. Proposed vesting schedule

| Allocation                 |                        TGE unlock |     Cliff | Release schedule                                                         |
| -------------------------- | --------------------------------: | --------: | ------------------------------------------------------------------------ |
| Public IDO                 |                               20% |      None | Remaining 80% monthly over 8 months                                      |
| Strategic / Incubator      |                                0% |  3 months | Monthly over 18 months                                                   |
| Liquidity & Listings       | Only the amount actually deployed |      None | Remaining reserve deployed only for disclosed liquidity/listing purposes |
| Player & World Cup Rewards |                                0% |  3 months | Performance-based budget over at least 72 months                         |
| Staking Rewards            |                                0% |  3 months | Dynamic release over at least 48 months                                  |
| Ecosystem & Partnerships   |                                0% |  3 months | Monthly over 48 months, subject to signed partner milestones             |
| Team                       |                                0% | 12 months | Monthly over 36 months                                                   |
| Advisors                   |                                0% |  6 months | Monthly over 24 months                                                   |
| Treasury / Reserve         |                                0% | 12 months | Monthly over 48 months; governance and multi-signature controlled        |
| Marketing & Growth         |                                5% |      None | Remaining allocation monthly over 24 months against approved budgets     |
| Community & Early Users    |                               10% |      None | Remaining allocation monthly over 12 months                              |

Vesting describes the maximum contractual availability of each allocation. It does not require the project to distribute the full available amount.

### 7.5. Initial circulation and liquidity

The revised TGE calculation counts only tokens that are transferable or deployed at launch.

| TGE component                  |       Calculation | Initial circulating HAP |
| ------------------------------ | ----------------: | ----------------------: |
| Public IDO                     |  40,000,000 x 20% |               8,000,000 |
| Initial DEX liquidity          | US$5000 / US$0.01 |                 500,000 |
| Marketing & Growth             |   70,000,000 x 5% |               3,500,000 |
| Community & Early Users        |  40,000,000 x 10% |               4,000,000 |
| **Initial circulating supply** |                   |      **16,000,000 HAP** |

Initial circulating supply: **1.60% of total supply**.

At an IDO and initial DEX reference price of US$0.01:

* Initial circulating market capitalization: US$245,000.
* Initial FDV: US$10,000,000.
* Initial DEX liquidity: 500,000 HAP paired with US$5,000 stablecoin value.
* Initial two-sided LP value: approximately US$10,000 before price movement and fees.

The initial DEX reference price is not a guaranteed market price. No guaranteed return, price floor, or automatic premium above the IDO price is promised.

The LP position should be locked for at least 24 months through an agreed provider or controlled under an equivalent audited multi-signature arrangement. The final liquidity requirement remains subject to Kommunitas and market-maker review.