# 03 Economy

## 03 Economy

> **Summary:**\
> This chapter outlines ANOME’s on-chain economic framework — covering card minting, trading, lending, loss-mining, and liquidity mechanisms designed for long-term sustainability and ecosystem growth.

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### Overview

ANOME has developed a comprehensive **on-chain economic model** that spans across:

* Card minting & trading
* NFT-backed lending
* Liquidity mining
* Loss-mining compensation

This model is designed to maintain **healthy circulation**, **price growth**, and **long-term asset value**.

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### Card Minting & Trading Mechanism

#### ERC-404 Hybrid Standard

ANOME cards are issued under the **ERC-404 protocol**, combining the uniqueness of NFTs with the liquidity of fungible tokens.\
Each minted card costs **1 USDA** (price adjustable by the project).\
Users can purchase directly or through the secondary market’s **AMM liquidity curve**.

> **Core logic:** Burning drives price, circulation determines scarcity, and the market determines value — not the platform.

#### Price & Liquidity Dynamics

* When a card is **burned**, **40% of its value** flows into the **price pool**, raising that card series’ floor price.
* The more cards are burned, the **fewer remain in circulation**, increasing scarcity.
* This ensures that prices appreciate naturally through *in-game activity* rather than speculation.

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### Card Selling & Value Redemption

When users sell a card, they receive **USDA** directly from the card’s liquidity pool, at the **current market price**.

USDA can then be **burned 1:1 for USDC**, allowing full exit liquidity and verifiable on-chain redemption.

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### Card Burn Revenue Distribution

When a card is burned at the end of a match, its value is redistributed through multiple ecosystem modules:

| Allocation    | Description                                                                   |
| ------------- | ----------------------------------------------------------------------------- |
| **40%**       | To the price pool — supports floor price and ensures sustainable appreciation |
| **Up to 30%** | To IP issuers — rewards creators and ecosystem partners                       |
| **5%**        | To player referrers — each side’s referrer receives 2.5%                      |
| **3%**        | To the Guild Reward Pool — promotes OG guild participation                    |
| **10%**       | OG Bonus — distributed proportionally to OG holders                           |
| **7.5%**      | Protection Fund — liquidity reserve to stabilize prices                       |
| **4.5%**      | Market & Internal Operations — supports platform upkeep and incentives        |

> This system transforms every in-game action into measurable, redistributable value — sustaining both creators and players.

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### Card Collateralization & Lending

ANOME enables users to **collateralize NFT cards** to unlock liquidity without liquidation risk.

#### Loan Process

* Each card starts with an **LTV (Loan-to-Value)** of **30%**.
* By staking **ANOME tokens**, users can raise LTV up to **95%**.
* Borrowed funds are issued in **USDA**, which can be swapped **1:1 for USDC** via ANOME’s DEX.

#### Interest & Repayment

* Current lending rate: **8% APR** (dynamically adjustable).
* Once repaid (principal + interest), collateralized cards are automatically unlocked.

#### Key Mechanisms

* **Collateral value = Card market price × Dynamic LTV (30%–95%)**
* **Staking ANOME** boosts borrowing power.
* **Card burning** gradually releases staked ANOME automatically — no manual action required.

> This creates a non-liquidating, self-balancing lending system that safeguards user assets during market volatility.

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### Loss-Mining Compensation Mechanism

ANOME introduces a unique **loss-mining** model — even losing players are rewarded, encouraging continuous participation.

#### 1. XNOME Compensation (Burned Card)

When the lowest-value card is burned, users receive XNOME:

#### XNOME = (Burned Card Value / Current bNOME Price) × Compensation Rate (%)

* Compensation rate dynamically adjusts between **50%–100%**.
* During high user activity → increases up to 100%.
* During low activity → decreases to 50%.
* XNOME is released **2% per day** over **50 days**, auto-converting **1:1 to ANOME** once fully released.
* Non-transferable; functions as a reward ledger.

#### 2. VNOME Compensation (Stolen Cards)

When 4 cards are lost to the opponent, the system records their combined base value:

#### VNOME = (Total Base Value of 4 Cards / Current ANOME Price) × 0.5%

* VNOME is released **0.5% per day** over **200 days**.
* Players must manually claim daily; missed claims extend the release schedule.
* Also non-transferable and linked to the user’s **MP balance (Mana Points)**.

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### MP (Mana Points) Mechanism

MP represents a user’s **contribution power** within the ANOME ecosystem.\
The more MP a player has, the greater their withdrawal and participation privileges.

**Sources of MP:**

* Inviting new users via referral links
* Supporting ANOME’s brand or partnerships
* Providing resources or contributing to ecosystem growth

MP levels directly influence **withdrawal limits**, **reward eligibility**, and **ecosystem ranking**.

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### ANOME Mining Ecosystem

ANOME’s mining ecosystem maintains **sustainable asset growth** through multiple systems:

* **LP Mining:** Rewards long-term liquidity providers with dynamic multipliers.
* **Loss-Mining Compensation:** Ensures even losing participants stay engaged.
* **Fair Distribution Mechanism:** Weighted emission model prevents whales from monopolizing rewards.

> Together, these components build a balanced, enduring Web3 economy centered on fairness, sustainability, and continuous engagement.