BUDS is the central token for the HK ecosystem. It is our most liquid token and connects different features of the game with one another. We have some aspects within the game where BUDS are essential to interact with. There are also some other aspects of the game where users get rewarded with BUDS for their interaction.
Let us understand the properties of BUDS such as, minting, burning, supply, inflation and deflation.
BUDS being our primary token, is required to interact with some of the main aspects throughout the HK ecosystem, the MOTA pool is a good example. BUDS have an unlimited supply, but are minted only through farming. The rate of inflation will depend on the properties of landplots and seeds, and the number of plots actively being farmed on. Since there is also a limit on the total number of lands in the game, there is a limit to how many BUDS can be minted each day. This effectively means that regardless of the increase in our user base in future, at any rate, will not create more inflation.
While the inflationary nature of BUDS helps the token to be highly liquid and be better distributed among users, it also means that more new tokens come into circulation everyday. To reduce the amount of inflation over time, we have in place a deflationary mechanism tied to the production rate of seeds. Every month the production rate of newly minted seeds is reduced. The rate of deflation for the current year is at 5% each month, and will reduce by 1% every year for the next three years until it flattens out at 1% deflation per month every year. This again reduces the rate of inflation over time.
In addition to the above mentioned ways to limit the rate of inflation, we also burn BUDS. Whenever users spend their BUDS to interact with any of the aspects in our ecosystem like raids and forge for example, those BUDS are burned, reducing the circulating supply a little bit.
As you can see, we have built and put in place reasonably strong tokenomics for BUDS. If this is not enough to convince you to hodl, we have a few more reasons below.
- Discount : While you can use a variety of tokens to interact with all the features in HK, using BUDS will give you a flat 10% discount.
- We're continuously and consistently adding more features that brings value to BUDS over time. In the long run, one can see how our token will be more valuable.