# BSLT Circulation Supply

## **Basic Principles**

1. Total supply will be initially fixed and minted on a regular ratio, however, at an appropriate time we intend to let DAO decide, by voting, on minting and burning of the token.
2. Principles by service phases
   * In the beginning, there might be a shortage of circulation supply - we will supply the token in the form of pre-sale, package sales, in-game reward, etc.
   * In the later stages, we will provide more ways for illiquidity to prevent increase of circulation supply.
3. Basic direction
   * We intend to minimize the amount of overhang (amount owned by Company or investors, illiquid tokens), as there can be bulk sales, a highly possible threat for an investor.
   * To stabilize the token price, we primarily intend to consider locking the amount in the public funds.  To stabilize the BSLT value and to control the amount circulated, if necessary, a certain amount in the Treasury account may be burnt.
   * We intend to decrease the actual circulation by staking, while the interest of gamers and the token holders in token value align.

## **Policies on decrease in BSLT Circulation             (= BSLT retrieval)**

1. To stabilize amount circulated, we will primarily consider de-circulation.
   * BSLTs will be moved to Treasury, Reserve, Ecosystem, etc.
2. 50% of fees on various transactions to be moved to the Treasury and uncirculated, and burned when necessary
   * In-game BSLT exchange fee, withdrawal fee, etc.
   * However, the amount allocated at Treasury may be utilized for users via Reward, Ecosystem, Liquidity, etc. in the future.
   * Funds in the Treasury will be used for stabilization of the ArcheWorld economy and tokenomics as well as sustainability. Benefits of users and holders will come first. When necessary, a certain portion of the amount in Treasury will be burned to stabilize the price of BSLT and control circulated amount.
3. BSLT staking
   * BSLT staking will be made available to lock circulated BSLT and increase user retention. 
   * Reward to staked amount should be in the form of interest, however, rewards will be paid out in the form of essential game elements such as labor potions.
   * Upon game launch, ArchePass to be rewarded (along with Archeum).
   * Upon Phase 2 of the game service, web-based staking will be available and ArcheLife will be rewarded.\
     \&#xNAN;**>** Rewards are to be distributed in accordance with staked amount and period.

## More channels of BSLT consumption

1. A variety of channels not directly related to the game where users can consume BSLT is necessary.
   * This is to provide to the holders profit and entertainment regardless of success of the game service.
   * This will also contribute to stabilization of the BSLT value by decrease in circulation with long-term lock-up or consumption.
   * Above-mentioned channels are targeted for Phase 3 launch (early 2023) of the game service.
2. Various activities for entertainment
   * Mini games either in-game or on the web (mini slots, lotteries, etc.)
   * Collaboration
     1. BSLTs can be used in other games and services of collaboration partners.
     2. Furthermore, NFTs to be made available for usage in other games and services.
   * Staking & De-Fi
     1. Staking & De-Fi will be made available to provide profit earnings by staking in SWAP of various DEX
     2. De-Fi through collaboration in order to provide more operating profit.

## Processing of BSLT held by us

1. Initial amount held by us will be 20%
   * 25% of which will be distributed as compensation to employees. There will be a vesting period of one year to minimize impact on the market.
   * The other 75% (15% of total amount) will be stored by us for use in the future.
2. Company Earnings, or our earnings will be the following:
   * Sales = Earnings from BSLT shop
   * Exchange fee from in-game BSLT exchange (10%)
   * BSLT Withdrawal fee (10 BSLT)
   * Company’s profit on land lease fees owned by the Company
   * Maintenance fees on land lease fees owned by the users.
3. We will handle our earnings as follows:
   * 100% of sales to be recognized as company earnings, 50% of exchange and withdrawal fees to be recognized as company earnings and the other 50% to be moved to the Treasury (non-circulated amount).
   * In order to increase the value of the token held by the holders, a portion of the token will be continuously locked up (uncirculated).
   * Company to convert a portion of the earnings into fiat currency (=KRW) in order to cover the operating expenses.
     1. These amounts are not newly issued and sold; but rather a circulation of existing volume - we do not expect a big impact on demand.
     2. We intend to sell a portion of our earnings into cash.
     3. To minimize impact, the amount sold each month will not exceed 0.5% of the total supply.