> 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 > **Tokenomics Version:** 3.0\ > **Effective Date:** September 1, 2026\ > **Reason for Update:** Cancellation of the previously planned public IDO and revision of the token distribution, launch, liquidity, and circulation strategy. ### 7.1. Design Principles HAP is designed as the coordination and utility asset of the Hero Arena Play competitive ecosystem. The updated token model follows six core principles: 1. **Game-first demand:** HAP utility should be driven by gameplay, tournaments, digital assets, community participation, and ecosystem services rather than passive speculation. 2. **Accessible competition:** Players are not required to purchase HAP or NFTs before accessing the core game experience. Free and paying players compete under the same gameplay rules. 3. **Controlled circulation:** Only tokens that are transferable, deployed into liquidity, distributed to users, or otherwise available to the market are counted as circulating supply. 4. **Performance-based emissions:** Player rewards, tournament rewards, staking incentives, marketing allocations, and ecosystem budgets are maximum allocations rather than automatic monthly emissions. 5. **Sustainable operations:** Stablecoin revenue and treasury assets may be retained for development, infrastructure, security, legal compliance, liquidity management, and live operations before any discretionary buyback or token-support activity. 6. **Compliance-gated expansion:** Paid entry, wagering, prediction, and other value-bearing features will only be introduced where legally permitted and after the required jurisdictional, KYC, AML, and responsible-gaming controls are implemented. ### 7.2. Token Overview | Property | Value | | --------------------------- | ---------------------------------------------------: | | Token name | Hero Arena Play | | Ticker | HAP | | Network | BNB Smart Chain | | Standard | BEP-20 | | Official token contract | `0x4d46228f72de5f3f02418af796d4ff2c1ea03f72` | | Official vesting contract | `0xac48740be3cb1f4800a3ea48473b8e8062b993dd` | | Official treasury wallet | `0x60213db17e3648e648db11866cf97b3e29caa2ed` | | Total supply | 1,000,000,000 HAP | | Supply policy | Fixed hard cap; no mint function | | Decimals | 18 | | Burn function | Yes | | Initial DEX | PancakeSwap V3 on BNB Chain | | Launch model | Direct DEX liquidity deployment | | Public IDO | Cancelled; no active public IDO is currently planned | | Initial DEX reference price | US$0.001 per HAP | HAP has a permanently fixed maximum supply of 1,000,000,000 tokens. The token contract does not include an additional minting function. The previously planned public IDO was cancelled after the project determined that the level of participation and prevailing market conditions were not sufficient to support a healthy and sustainable token launch. The cancellation of the IDO does not increase the Team allocation. Tokens previously reserved for the public sale have instead been reassigned to the Liquidity and Market Stability allocation under the controls described below. Any participant refunds related to cancelled fundraising campaigns are handled according to the official announcements and procedures of the respective launchpads. No tokens allocated to a cancelled public sale are counted as circulating unless they are subsequently deployed or distributed under the updated Tokenomics. ### 7.3. Updated Token Distribution | Allocation | % | HAP | Purpose | | ---------------------------- | -------: | ----------------: | ------------------------------------------------------------------------------------------------------------ | | Strategic / Incubator | 1.5% | 15,000,000 | Strategic investors, incubators, and long-term contributors operating under signed agreements | | Liquidity & Market Stability | 9.0% | 90,000,000 | Initial and future DEX liquidity, exchange integrations, market-making reserves, and liquidity stabilization | | Player & World Cup Rewards | 28.0% | 280,000,000 | PvP, PvE, seasons, qualifiers, World Cup prizes, creator competitions, and player achievements | | Staking Rewards | 6.0% | 60,000,000 | Time-limited ecosystem participation and staking incentives | | Ecosystem & Partnerships | 12.5% | 125,000,000 | Integrations, game studios, creators, communities, distribution partners, and ecosystem development | | Team | 15.0% | 150,000,000 | Long-term alignment of the core development and operating team | | Advisors | 2.0% | 20,000,000 | Gaming, legal, economic, security, technical, and growth advisors | | Treasury / Reserve | 15.0% | 150,000,000 | Product runway, infrastructure, security, legal expenses, emergency reserves, and strategic initiatives | | Marketing & Growth | 7.0% | 70,000,000 | Measurable user acquisition, launch campaigns, content, regional expansion, and growth initiatives | | Community & Early Users | 4.0% | 40,000,000 | Testnet users, quests, contributors, community events, early supporters, and participation programs | | **Total** | **100%** | **1,000,000,000** | | #### Reallocation of the Cancelled IDO Allocation The former Public IDO allocation represented 4% of the total HAP supply, equivalent to 40,000,000 HAP. Following the cancellation of the public IDO, this allocation has been transferred to the Liquidity and Market Stability reserve. As a result, the Liquidity and Market Stability allocation has increased from 5% to 9%. These tokens may only be used for: * Initial and future decentralized-exchange liquidity; * Additional liquidity ranges or liquidity pairs; * Approved centralized or decentralized exchange integrations; * Market-making inventory under written agreements; * Emergency liquidity stabilization; * Liquidity incentive programs approved by the project treasury. These tokens are not treated as Team tokens and are not considered circulating until they are actually deployed or transferred into an unlocked market-facing arrangement. #### Allocation Controls * Strategic and Incubator tokens may only be issued under signed investment, incubation, advisory, or service agreements. * Undeployed Liquidity and Market Stability tokens remain outside circulating supply. * Liquidity reserve tokens may not be reclassified as Team compensation without a publicly disclosed Tokenomics amendment. * Vesting-controlled allocations are managed through the official vesting contract. * Treasury-controlled allocations are managed through the official treasury wallet or another publicly disclosed multi-signature wallet. * Material treasury and liquidity transactions should be reported publicly after launch. * Unused campaign, partnership, or reward budgets remain in their respective allocation reserves. * A maximum allocation does not represent a commitment to distribute the full amount. ### 7.4. Updated Vesting and Release Schedule | Allocation | Launch availability | Cliff | Release schedule | | ---------------------------- | --------------------------------: | --------: | ---------------------------------------------------------------------------------------------- | | Strategic / Incubator | 0% | 3 months | Monthly over 18 months, subject to signed agreements | | Liquidity & Market Stability | Only the amount actually deployed | None | Remaining reserve deployed only for disclosed liquidity, listing, or market-stability purposes | | Player & World Cup Rewards | 0% | 3 months | Performance-based emissions over at least 72 months | | Staking Rewards | 0% | 3 months | Dynamic emissions over at least 48 months | | Ecosystem & Partnerships | 0% | 3 months | Monthly availability over 48 months, subject to partner milestones | | Team | 0% | 12 months | Monthly over 36 months following the cliff | | Advisors | 0% | 6 months | Monthly over 24 months | | Treasury / Reserve | 0% | 12 months | Monthly availability over 48 months under treasury controls | | Marketing & Growth | Up to 5% of the allocation | None | Remaining allocation available monthly over 24 months against approved budgets | | Community & Early Users | Up to 10% of the allocation | None | Remaining allocation available monthly over 12 months through approved community programs | Vesting describes the maximum contractual availability of an allocation. It does not mean that every available token will automatically be distributed or enter circulation. Tokens remain outside circulating supply while they are: * Held in an undeployed liquidity reserve; * Locked under a vesting agreement; * Held in a reward contract but not yet claimable; * Reserved for future tournaments; * Held in the Treasury without unrestricted market availability; * Assigned to a campaign that has not started; * Allocated to a partner whose contractual milestones have not been completed. ### 7.5. Initial Launch Parameters Hero Arena Play will use a direct PancakeSwap V3 liquidity deployment rather than the cancelled public IDO as its initial market-launch mechanism. | Parameter | Initial configuration | | -------------------------------------- | ---------------------------------------: | | Initial reference price | US$0.001 per HAP | | Initial HAP liquidity funding | 20,000,000 HAP | | Initial stablecoin liquidity funding | 20,000 USDT | | Initial reference value of HAP funding | US$20,000 at the initial reference price | | Initial two-sided liquidity funding | Approximately US$40,000 | | Trading pair | HAP / USDT | | DEX | PancakeSwap V3 | | Fee tier | 0.25% (`2500`) | | Primary planned price range | US$0.0005–US$0.004 per HAP | The initial reference price is calculated from the relationship between the HAP and USDT amounts made active at launch: ``` Initial HAP Reference Price = Active USDT Value ÷ Active HAP Amount ``` The project will provide initial liquidity funding of 20,000,000 HAP and 20,000 USDT, representing a combined reference value of approximately US$40,000 at US$0.001 per HAP. These amounts represent the initial launch funding rather than a maximum limit on future liquidity. Because PancakeSwap V3 uses concentrated liquidity, the exact amount of each asset accepted into an individual position depends on the current price and the selected range. If the primary position does not use the full initial funding because of the required asset ratio, the remaining assets may be deployed through one or more additional disclosed liquidity positions. The project may add further HAP and stablecoin liquidity after launch in response to trading activity, market depth, user demand, exchange requirements, volatility, and the long-term needs of the ecosystem. Any material addition, removal, or reallocation of project-controlled liquidity should be disclosed through the project's official communication channels. The reference price is not a sale price, guaranteed market price, price floor, or promise of future value. Once trading begins, the market price may move above or below the initial reference price. ### 7.6. Initial Circulating Supply Because the public IDO has been cancelled, no Public IDO allocation is included in the initial circulating supply. The confirmed initial liquidity funding includes 20,000,000 HAP, equal to 2% of the fixed total supply. Only tokens actually deposited into active market-facing liquidity positions are counted as circulating. Additional HAP deployed as liquidity after launch will be added to circulating supply when it becomes market-accessible. | Component | Initial circulating amount | | ------------------------------------------------------ | ----------------------------------------------------------------: | | Initial HAP deployed into active PancakeSwap liquidity | 20,000,000 HAP across the disclosed initial position or positions | | Marketing tokens transferred to unlocked recipients | Actual amount distributed | | Community tokens claimed or distributed | Actual amount distributed | | Unlocked partner or contributor tokens | Actual amount transferred and transferable | | **Initial circulating supply** | **Sum of the above components** | If no other unlocked tokens have been distributed at launch, the initial circulating supply will be: ``` 20,000,000 HAP ``` This is equal to: ``` 2.00% of the total HAP supply ``` At an initial reference price of US$0.001 per HAP: ``` Initial Circulating Market Capitalization = 20,000,000 HAP × US$0.001 = US$20,000 ``` ``` Initial Fully Diluted Valuation = 1,000,000,000 HAP × US$0.001 = US$1,000,000 ``` The following allocations are excluded until they become transferable: * Undeployed Liquidity and Market Stability reserves; * Locked Team and Advisor allocations; * Undistributed Player and World Cup rewards; * Undistributed Staking rewards; * Undeployed Treasury reserves; * Unclaimed Community rewards; * Conditional partnership allocations; * Cancelled public-sale allocations not deployed into liquidity. ### 7.7. Liquidity Management The primary initial liquidity position is planned around a price range of US$0.0005–US$0.004 per HAP with a PancakeSwap V3 fee tier of 0.25%. Within this range, the position may provide active liquidity and earn trading fees. If the market price moves outside the range: * Below US$0.0005, the position will become predominantly or entirely HAP; * Above US$0.004, the position will become predominantly or entirely USDT; * The out-of-range position will stop earning trading fees until the price returns to the range or the position is rebalanced. Hero Arena Play may deploy liquidity across more than one price range to support different market conditions and reduce dependence on a single concentrated position. This may include: * A wider base position intended to maintain broader market access; * One or more narrower positions intended to provide deeper liquidity near the reference price; * Additional positions introduced as trading activity and market conditions evolve. Each concentrated-liquidity position may be represented by a separate LP Position NFT. The project should publicly disclose all material project-controlled LP positions, including: * Position NFT identifier; * Trading pair; * Fee tier; * Price range; * Assets deposited; * Controlling wallet; * Locking or multi-signature arrangement; * Material additions, removals, or rebalancing events. Project-controlled liquidity should be locked through an established locking provider or managed under an equivalent disclosed multi-signature arrangement with clear withdrawal and rebalancing policies. Liquidity may be rebalanced when the market price moves outside an active range. Material liquidity removals should be disclosed to the community. Liquidity supplied independently by community members remains outside the direct control of Hero Arena Play. ### 7.8. Token Utility HAP is intended to support participation and coordination throughout the Hero Arena Play ecosystem. Potential utility includes: * Tournament and World Cup rewards; * Seasonal and competitive rewards; * Optional tournament registration where legally permitted; * Selected digital assets and customization features; * Community campaigns and quests; * Staking-based ecosystem participation; * Creator and contributor incentives; * Partner integrations; * Community governance or signaling features introduced in the future. Core gameplay access will not require users to purchase NFTs or HAP solely to become competitively viable. The Tutorial may be accessed without connecting a wallet. Certain Challenges require registration and creation of an on-chain Hero Arena Profile so that player Points can be recorded. PvP requires registration but does not necessarily require creation of an on-chain profile unless specified by the applicable competition rules. Points and HAP serve different purposes: * **Points** represent player progress, achievements, rankings, and potential tournament eligibility. * **HAP** is the ecosystem utility and reward asset. Earning Points does not automatically guarantee a HAP reward unless a specific campaign or tournament states otherwise. ### 7.9. Rewards and Emissions Player, tournament, community, and staking allocations represent maximum long-term budgets. Actual emissions may be adjusted according to: * Active-player numbers; * Tournament participation; * Revenue; * Token liquidity; * Player retention; * Market conditions; * Security considerations; * Regulatory requirements; * Measurable campaign performance. Unused reward budgets remain reserved and do not automatically enter circulation. The project may reduce, postpone, or cancel planned emissions if distributing them would create excessive dilution, unhealthy selling pressure, security risks, or unsustainable economic behavior. ### 7.10. Treasury and Revenue Policy Hero Arena Play may generate revenue from: * Digital assets and cosmetic items; * Tournament services; * Sponsorships; * Advertising; * Partnerships; * Marketplace or protocol fees; * Premium features; * Licensing and integration services; * Other game-related products. Revenue is distinct from token-sale proceeds. Stablecoin and fiat revenue may be allocated to: * Game development; * Infrastructure and servers; * Security and audits; * Legal and regulatory compliance; * Community operations; * Marketing; * Tournament operations; * Liquidity; * Treasury reserves. Any token buyback, burn, liquidity addition, or community distribution funded from revenue is discretionary unless governed by a separate published policy. No automatic buyback or guaranteed price-support mechanism is promised. ### 7.11. Official Contract and Treasury Addresses Users should verify all addresses through the official Hero Arena Play website and documentation before interacting with any smart contract. | Purpose | Address | | ------------------------- | -------------------------------------------- | | HAP token contract | `0x4d46228f72de5f3f02418af796d4ff2c1ea03f72` | | Official vesting contract | `0xac48740be3cb1f4800a3ea48473b8e8062b993dd` | | Official treasury wallet | `0x60213db17e3648e648db11866cf97b3e29caa2ed` | Hero Arena Play will announce any future address migration or additional treasury, liquidity, reward, or multi-signature wallet through its official communication channels before treating the new address as authoritative. ### 7.12. Transparency and Future Amendments Hero Arena Play may update Tokenomics as the product, regulatory environment, liquidity requirements, and ecosystem evolve. Material changes should be accompanied by: * A new Tokenomics version number; * An effective date; * A written explanation; * Updated allocation and vesting tables; * Updated website and documentation; * A public community announcement. Previous versions may remain available for transparency but should be clearly marked as outdated or deprecated. No Tokenomics update may increase the fixed maximum supply of 1,000,000,000 HAP unless a new token contract is deployed and the migration is publicly approved and disclosed. ### 7.13. Risk Disclosure HAP is a utility token used within an early-stage gaming ecosystem. Holding or using HAP involves significant risk, including market volatility, liquidity risk, smart-contract risk, regulatory uncertainty, and the possibility of partial or complete loss of value. Nothing in this document constitutes financial, investment, legal, or tax advice. Hero Arena Play does not guarantee token price, liquidity, exchange availability, rewards, returns, or future platform adoption. Users should conduct their own research and obtain independent professional advice where appropriate.