### **Total Supply**
* 100 million tokens in total, and no more will ever be minted. A limited-edition treasure!
### **Initial Distribution**
* All 100 million KARAT tokens are initially placed in a liquidity pool with CAKE tokens, setting the initial price at 0.001 CAKE/KARAT.
### **Transparency**
* The KARAT smart contract is open source on BSC Scan.
### **Liquidity pool**
* PancakeSwap V3.
### **Auto Buyback**
* 20% of daily game revenue in CAKE tokens is automatically burned by PancakeSwap Gaming Marketplace. The remaining 80% of CAKE tokens are used for buying back KARAT tokens from the liquidity pool.
***
### The Buyback Breakdown
20% of bought-back tokens are burned to dust.
35% goes to daily mines for fair distribution based on hash power.
25% of the team's total equity is allocated to the DeFi pool for dividend distribution.
20% remains as team rewards, supporting ongoing development and operations.
***
### **Example of the Burn Mechanism**
Let's say our game generates 1,000 CAKE in revenue for the day. Here's what happens next:
1. **Burn 20% (200 CAKE)**\
200 CAKE tokens are burned, reducing the total supply and increasing the value of each remaining KARAT.
2. **Use the remaining 80% (800 CAKE) to buy back Karats**\
Based on the real-time price in the liquidity pool, let's illustrate with an example of purchasing 100,000 Karats.
3. **Distribution of Bought-Back KARATs (100,000)**
* **20% (20,000 KARATs) burned**\
These KARATs are permanently removed from circulation, ensuring more valuable KARAT.
* **35% (35,000 KARATs) to daily mines**\
Added to the daily mining pool, available for players to earn based on their hash power.
* **25%(25,000 KARATs)to the DeFi pool**
* **20%(20,000)as team rewards.**
*The buyback allocation has been adjusted to enhance operational efficiency and support our expanding ecosystem. We have divided the ecosystem fund into five specific areas (Eco-1 to Eco-5) with detailed plans currently in development and to be announced.*
***
{% hint style="success" %}
Open public purchase after 7M Karats are burned
{% endhint %}
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