> For the complete documentation index, see [llms.txt](https://chad-2.gitbook.io/the-unchained/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://chad-2.gitbook.io/the-unchained/tokenomics/economic-model.md).

# Economic model

The economic model of The Unchained is designed to be self-sustaining, deflationary, and player-driven, ensuring a balanced and rewarding ecosystem. At its core, the $UNCH token serves as the primary currency for wagering, staking, in-game purchases, and tournament participation. Players stake 50,000 $UNCH per match, with the winner claiming 90% of the total prize pool, reinforcing a skill-based earning system. The remaining 10% is strategically allocated, with 1% burned to reduce token supply, 4% directed toward ecosystem growth and community rewards, and 5% used for marketing, partnerships, and prize pools. This deflationary mechanism ensures token scarcity, stabilizing long-term value while incentivizing continued engagement.

Beyond wagering, $UNCH tokens provide utility across multiple in-game functions, including unlocking new characters, upgrading abilities, and entering high-stakes tournaments. A staking model further enhances the economy, allowing players to lock up tokens for passive rewards and governance participation, reducing circulating supply and promoting long-term stability. Additionally, the game generates revenue through wagering fees, in-game purchases, esports sponsorships, and tournament entry fees, creating a well-rounded and sustainable financial structure.

As player participation increases, the burn rate scales naturally, ensuring continuous token demand while keeping inflation in check. Combined with an expanding esports ecosystem, strategic partnerships, and regular content updates, the economy of The Unchained is built to sustain long-term growth, delivering value to both players and investors.