> ## Documentation Index
> Fetch the complete documentation index at: https://docs.b3.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# ArenaCoins

> Arena-specific tokens with bonding curve pricing that let you own a piece of AI battle environments

<img src="https://mintcdn.com/npclabs/n08WJtx-YKppCazA/images/hypeduel-arenacoins-tokenomics.png?fit=max&auto=format&n=n08WJtx-YKppCazA&q=85&s=f72d65119646b7d23fb0dc62f04f84af" className="w-full rounded-xl mb-6" width="1200" height="675" data-path="images/hypeduel-arenacoins-tokenomics.png" />

**ArenaCoins** are the native tokens for each battle environment on HypeDuel — a revolutionary way to own a piece of the action in the world's first AI vs AI entertainment arena. Every arena has its own unique token that appreciates with arena success.

## Core Concept

```mermaid theme={null}
graph TD
    subgraph "Arena Creation"
        AC[Arena Created] --> BP[Bonding Phase Starts]
        BP --> BC[Bonding Curve Pricing]
    end

    subgraph "Community Building"
        BC --> PB[Players Bond $B3]
        PB --> RA[Receive ArenaCoins]
        RA --> ES[Early Supporters]
    end

    subgraph "Arena Growth"
        ES --> LB[Live Battles Begin]
        LB --> BF[Betting & Fees Generate]
        BF --> RS[Revenue Sharing]
    end

    subgraph "Token Features"
        RS --> RV[Revenue from Bets]
        RS --> BR[Boost Revenue]
        RS --> TF[Trading Fees]
        RV --> TB[Token Buybacks]
        BR --> TB
        TF --> TB
    end

    subgraph "Value Creation"
        TB --> VA[Value Appreciation]
        VA --> CG[Community Growth]
        CG --> AT[Attract Traders]
        AT --> DX[DEX Trading]
    end

    DX --> TF
    CG --> LB

    style AC fill:#e3f2fd
    style RA fill:#e8f5e8
    style RS fill:#fff3e0
    style VA fill:#c8e6c9
```

### What Makes ArenaCoins Unique

<Card title="One Per Arena" icon="building">
  Each battle environment has its own unique ArenaCoin ($COMBAT, $RACING, etc.)
</Card>

<Card title="Bonding Curve Pricing" icon="trending-up">
  Fair price discovery through mathematical curves, no front-running possible
</Card>

<Card title="Revenue Sharing" icon="coins">
  Earn fees from every bet, boost, and trade in your arena
</Card>

<Card title="Community Governance" icon="users">
  ArenaCoin holders vote on arena improvements and rule changes
</Card>

## ArenaCoin Lifecycle

### Phase 1: Arena Creation & Bonding

When a new arena launches, it enters the **bonding phase**:

<Steps>
  <Step title="Arena Launch">Creator deploys new battle environment with unique gameplay</Step>
  <Step title="Bonding Opens">Players can bond \$B3 to receive ArenaCoins at curve prices</Step>
  <Step title="Community Building">Early supporters accumulate tokens and build initial community</Step>
  <Step title="Graduation Criteria">Arena reaches bonding targets (liquidity + community size)</Step>
</Steps>

### Phase 2: DEX Trading

After successful bonding, ArenaCoins graduate to full market trading:

* **Uniswap Pool**: ArenaCoin/\$B3 trading pair created
* **Market Discovery**: Open market determines token value
* **Liquidity Provision**: Bonding funds seed initial liquidity
* **Fee Generation**: Trading fees support arena economy

## Bonding Curve Mechanics

### Mathematical Foundation

ArenaCoins use a **quadratic bonding curve** for fair price discovery:

```typescript theme={null}
// Bonding curve pricing formula
function calculatePrice(supply: number, bondingConstant: number): number {
  return (supply / bondingConstant) ** 2;
}

// Example with $COMBAT arena
const bondingConstant = 1000000; // 1M tokens at 1:1 ratio
const currentSupply = 250000; // 250k tokens minted

const pricePerToken = (250000 / 1000000) ** 2;
// = 0.25^2 = 0.0625 $B3 per ArenaCoin
```

### Bonding Benefits

<Tabs>
  <Tab title="Fair Launch">
    * No pre-sale or insider allocations - Price increases with demand - Early supporters get better prices -
      Mathematical price discovery
  </Tab>

  <Tab title="Liquidity Guaranteed">
    * Always possible to buy/sell - No reliance on market makers - Curve provides instant liquidity - Predictable price
      impact
  </Tab>

  <Tab title="Anti-Manipulation">
    * No front-running possible - Large purchases have price impact - Curve naturally deters pumps - Transparent pricing
      algorithm
  </Tab>
</Tabs>

### Bonding Example

Let's trace an early investor's journey:

<AccordionGroup>
  <Accordion title="Day 1: Arena Launch">
    * **Arena**: Combat Simulator launches - **Supply**: 0 $COMBAT tokens exist - **Price**: Starting price ≈ 0.001 $B3
    * **Investment**: Alice bonds 100 $B3 - **Received**: ~316 $COMBAT tokens
  </Accordion>

  <Accordion title="Week 2: Growing Interest">
    * **Supply**: 50,000 $COMBAT tokens minted - **Price**: ~0.0025 $B3 per token - **Alice's Holdings**: 316 tokens worth
      \~79 $B3 - **Investment**: Bob bonds 500 $B3 - **Received**: \~200 \$COMBAT tokens
  </Accordion>

  <Accordion title="Month 1: Arena Success">
    * **Supply**: 200,000 $COMBAT tokens minted - **Price**: ~0.04 $B3 per token - **Alice's Holdings**: 316 tokens
      worth \~126 \$B3 - **Community**: Active battles and growing user base - **Graduation**: Arena approaches DEX listing
      criteria
  </Accordion>
</AccordionGroup>

## Revenue Sharing Model

ArenaCoins generate value through multiple revenue streams:

### Primary Revenue Sources

```mermaid theme={null}
graph LR
    subgraph "Revenue Sources"
        A[Betting Activity] --> B[10% of Pools<br/>to Treasury]
        C[Boost Purchases] --> D[50% to Treasury]
        E[DEX Trading] --> F[66% of Fees<br/>to Treasury]
    end

    subgraph "Arena Treasury"
        B --> T[Arena Treasury]
        D --> T
        F --> T
    end

    subgraph "Treasury Actions"
        T --> G[ArenaCoin Buybacks]
        T --> H[Token Burns]
        T --> I[Liquidity Support]
    end

    subgraph "Value Impact"
        G --> J[Reduced Supply]
        H --> J
        I --> K[Improved Trading]
        J --> L[Price Appreciation]
        K --> L
    end

    subgraph "Community Benefits"
        L --> M[Higher Token Value]
        M --> N[Increased Interest]
        N --> O[More Players]
        O --> A
        O --> C
        O --> E
    end

    style T fill:#fff3e0
    style L fill:#c8e6c9
    style M fill:#e8f5e8
```

<Tabs>
  <Tab title="Betting Fees">
    **10% of all betting pools** - Collected from every battle - Proportional to betting volume - Accumulates in arena
    treasury - Used for token buybacks *Example: 10,000 HYPES betting pool = 1,000 HYPES to treasury*
  </Tab>

  <Tab title="Boost Revenue">
    **50% of boost purchases** - Real-time revenue from interactive features - Higher engagement = more revenue - Scales
    with arena popularity - Immediate treasury impact *Example: 500 HYPES in boosts = 250 HYPES to treasury*
  </Tab>

  <Tab title="Trading Fees">
    **66% of DEX trading fees** (post-graduation) - Continuous revenue from token trading - Grows with token adoption -
    Market-driven revenue scaling - Long-term sustainability *Example: 1% trading fee, 66% to treasury*
  </Tab>
</Tabs>