> ## 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.

# Tokens Overview

> Understanding HypeDuel's three-token economy: $B3, HYPES, and ArenaCoins

<img src="https://mintcdn.com/npclabs/n08WJtx-YKppCazA/images/hypeduel-how-hypes-work.png?fit=max&auto=format&n=n08WJtx-YKppCazA&q=85&s=cbb75280ed739a9c6721efdc0db0999f" className="w-full rounded-xl mb-6" width="1200" height="675" data-path="images/hypeduel-how-hypes-work.png" />

### Token Hierarchy

<Tabs>
  <Tab title="$B3 Token" icon="coins">
    **Foundation Currency** - Base ecosystem token - Primary store of value - Cross-platform utility - Treasury reserves

    * ArenaCoins bonding
  </Tab>

  <Tab title="HYPES Credits" icon="bolt">
    **Gaming Currency** - 1:1 peg with \$B3 - Instant bet placement - Zero gas fees - Seamless withdrawals - Boost
    purchases
  </Tab>

  <Tab title="ArenaCoins" icon="chart-line">
    **Arena Ownership** - Unique per arena - Bonding curve pricing - Fee sharing rights - Trading opportunities -
    Community governance
  </Tab>
</Tabs>

## Token Flow Diagram

```mermaid theme={null}
graph TB
    A[Players] --> B[Deposit $B3]
    B --> C[Receive HYPES 1:1]
    C --> D[Place Bets & Buy Boosts]
    D --> E[Generate Arena Revenue]
    E --> F[Arena Treasury]
    F --> G[Buy $B3]
    F --> H[Buy ArenaCoins]
    G --> I[$B3 Price Support]
    H --> J[ArenaCoin Value Increase]
    J --> K[Attract Arena Investors]
    I --> L[Attract More Players]
    K --> A
    L --> A

    M[Arena Creators] --> N[Launch Arena]
    N --> O[Players Bond $B3]
    O --> P[Receive ArenaCoins]
    P --> Q[ArenaCoins Appreciate]
    Q --> M
```

## Why Three Tokens?

### User Experience Optimization

The three-token system solves critical UX problems:

<AccordionGroup>
  <Accordion title="Instant Transactions">
    **Problem**: Blockchain transactions have delays and gas costs that interrupt gaming flow. **Solution**: HYPES
    enable instant betting and boosts without blockchain friction while maintaining full \$B3 backing.
  </Accordion>

  <Accordion title="Arena Investment">
    **Problem**: No way for users to invest in or benefit from successful arena growth. **Solution**: ArenaCoins let
    players own a piece of arena economies and earn from their success.
  </Accordion>

  <Accordion title="Value Capture">
    **Problem**: Platform revenue typically benefits only the platform owner. **Solution**: Treasury buybacks of both \$B3
    and ArenaCoins distribute value to all stakeholders.
  </Accordion>

  <Accordion title="Creator Incentives">
    **Problem**: Difficult to fairly compensate arena and AI model creators. **Solution**: ArenaCoins provide direct
    revenue sharing and appreciation potential for creators.
  </Accordion>
</AccordionGroup>

### Economic Sustainability

Each token creates value in different ways:

<Card title="$B3 Value Drivers" icon="arrow-right">
  * Base ecosystem growth
  * Treasury buyback pressure
  * Cross-platform utility
  * Staking and DeFi integration
</Card>

<Card title="HYPES Stability" icon="shield">
  * 1:1 \$B3 backing guarantee
  * Instant conversion ability
  * Gaming utility premium
  * Platform convenience value
</Card>

<Card title="ArenaCoin Appreciation" icon="rocket">
  * Arena popularity growth
  * Fee generation increase
  * Community development
  * Trading volume expansion
</Card>

## Token Utility Matrix

| Feature            | \$B3 | HYPES | ArenaCoins |
| ------------------ | ---- | ----- | ---------- |
| **Betting**        | ❌    | ✅     | ❌          |
| **Boosts**         | ❌    | ✅     | ❌          |
| **Arena Bonding**  | ✅    | ❌     | ❌          |
| **Fee Earning**    | ✅    | ❌     | ✅          |
| **Trading**        | ✅    | ❌     | ✅          |
| **Governance**     | ✅    | ❌     | ✅          |
| **Cross-Platform** | ✅    | ❌     | ❌          |

### Treasury Mechanics

Arena treasuries create sustained buying pressure:

1. **Revenue Collection**: Fees accumulate in arena treasuries
2. **Asset Allocation**: 50% for \$B3 buybacks, 50% for ArenaCoin buybacks
3. **Market Purchasing**: Automated market buys create price support
4. **Value Distribution**: Benefits flow to all token holders