> For the complete documentation index, see [llms.txt](https://mythical-beings.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mythical-beings.gitbook.io/whitepaper/tokens/gem/supply-and-allocation.md).

# SUPPLY AND ALLOCATION

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With no **Initial Coin Offering (ICO)** or developer reserves, the distribution of GEM is **based solely on in-game activities**, reinforcing the principle that players are the primary drivers of the token’s circulation and value.
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Unlike traditional token models, **the supply of GEM is entirely player-driven**, ensuring a **fair, decentralized economy** within the *Mythical Beings* ecosystem. Every **3.5-day cycle**, the game mints **21,000 GEM**, strategically distributing it across the ecosystem to **reward engagement, strengthen economic balance, and sustain long-term value**.

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### **GEM Distribution: Rewarding Engagement and Strategy**

The newly minted **21,000 GEM** is allocated as follows:

🔹 **9,000 GEM – Bounty Rewards**\
Players who **complete their collections and claim The Bounty** receive a **share of 9,000 GEM**, directly **rewarding their dedication to the hunt for rare cards**.

✅ **Encourages active participation in collecting and trading**.\
✅ **Promotes social interaction as players collaborate to complete sets**.\
✅ **Creates an ongoing cycle of engagement, ensuring long-term sustainability**.

🔹 **12,000 GEM – Special Card Dividends**\
Holders of **Special Cards** receive **12,000 GEM in dividends**, reinforcing the value of these exclusive assets.

✅ **Rewards players for collecting and holding rare cards**.\
✅ **Strengthens the long-term importance of Special Cards within the ecosystem**.\
✅ **Encourages players to hold onto these high-value assets, maintaining market stability**.

This dual-layered **reward system fuels both collection-building and strategic investing**, ensuring that every player—whether an **active collector or a Special Card holder**—has a meaningful role in the economy.

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### **Deflationary Mechanics: A Balanced and Sustainable Supply**

Beyond issuance, **GEM is also burned during gameplay**, maintaining **a stable and sustainable token economy**. Players **spend GEM** in activities like:

🔹 **Crafting** – Upgrading lower-tier cards into rarer, more valuable ones.\
🔹 **Morphing** – Exchanging unwanted cards for fresh additions.\
🔹 **Battlegrounds Tribute Payments** – Entering strategic battles with GEM as the entry cost.

Every **GEM spent is permanently removed from circulation**, preventing inflation and **preserving the token’s long-term value and scarcity**.

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### **A Dynamic and Engaging Token Economy**

The **interaction between minting, distribution, and burning** ensures that GEM remains **both valuable and strategically essential**.

🔹 **New GEM is continuously generated through player-driven activity**.\
🔹 **GEM is redistributed to active participants, rewarding engagement**.\
🔹 **A portion of GEM is permanently burned, maintaining scarcity and economic balance**.

This **well-balanced token system** sustains the *Mythical Beings* ecosystem, keeping it **exciting, rewarding, and entirely player-driven**. Whether **competing, collecting, or strategizing**, **GEM is the backbone of a thriving, evolving world**—one that grows in value as players continue to shape it.