ArenaCoins

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
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

ArenaCoin Lifecycle

Phase 1: Arena Creation & Bonding

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

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
// 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

• No pre-sale or insider allocations - Price increases with demand - Early supporters get better prices - Mathematical price discovery

• Always possible to buy/sell - No reliance on market makers - Curve provides instant liquidity - Predictable price impact

• No front-running possible - Large purchases have price impact - Curve naturally deters pumps - Transparent pricing algorithm

Bonding Example

Let's trace an early investor's journey:

Revenue Sharing Model

ArenaCoins generate value through multiple revenue streams:

Primary Revenue Sources

mermaid
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

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

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

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