> For the complete documentation index, see [llms.txt](https://metaspacechain.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://metaspacechain.gitbook.io/whitepaper/tokenomics.md).

# Tokenomics

MetaSpace uses a smart dual-token system to manage the game economy and governance. The model consists of $MLD, the governance and premium utility token, and $LORD, the primary in-game reward and utility token. $MLD has a maximum supply of 2.5 billion, while $LORD has a demand-based flexible supply. More on that later. We have opted for two tokens instead of just one to prevent a single token from potentially serving conflicting roles to gamers and investors.

### Why a Dual-Token Model?

A single-token approach, while simpler, would have to act as both an investment vehicle for holders and an everyday currency for gamers. To prevent this from destroying long-term value for the investors, a separate utility and governance token is set. This dual-token system, hence, separates the functions for gamers and investors. In MetaSpace, $MLD is meant to capture long-term value, enable ecosystem-level decision-making, and serve as a premium utility token. $LORD, on the other hand, serves as the earnings token, directly tied to gameplay, and has a demand-based dynamic supply.

### $MLD (METALORD) Utility and Supply

Symbol: **$MLD** \
Maximum Supply: **2.5 billion**

$MLD is an ERC-20 token deployed on the Polygon chain. It serves as the governance and premium utility token on the MetaSpace ecosystem. All in-game items on MetaSpace are minted as NFTs. Players or investors can buy NFTs only using $MLD, thereby deriving its primary utility within the MetaSpace ecosystem. Conversely, when users stake NFTs, they earn rewards in $MLDs, which serve as a utility for NFTs outside of the gameplay.

The maximum supply of $MLD is 2.5 billion tokens. However, to enhance long-term token value as the ecosystem scales, $MLD has a pre-determined vesting schedule, a burning mechanism, and an on-demand governance minting system hard-coded in its monetary policy. 

<mark style="background-color:violet;">$MLD Minting Schedule</mark>

<figure><img src="https://240811135-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLPnuX70nxhO34pJ0NtzF%2Fuploads%2FTowu96pxSDWYXGWTfhnt%2Ftokenomics1.jpg?alt=media&amp;token=d46d6305-f7d1-417b-ac3c-030dce6a0262" alt=""><figcaption></figcaption></figure>

$MLD follows a 5-year front-loaded unlock schedule. In the first year, for example, a maximum of 1 billion $MLD (40% of the total 2.5 billion supply) may be released. Any unclaimed tokens from this allocation will be permanently burned. To support value appreciation amid rising demand, the unlock amounts taper gradually from Year 1 to Year 5. This burning mechanism also acts as a safeguard against potential mis-estimation of the token’s optimal circulating supply.

For the same reason, the monetary policy also allows the MetaSpace DAO, subject to a community vote, to mint up to an additional 50 million $MLD tokens after the unlocking schedule concludes. This safeguard maintains liquidity if an excessive number of tokens have been permanently removed from circulation through burning. The MetaSpace DAO is the governing body of the MetaSpace ecosystem. Read more about the MetaSpace DAO [here](https://www.notion.so/DAO-Governance-33b73984d06080f7b912e7b8ba8c269d?pvs=21).&#x20;

### $MLD Allocation and Strategic Purpose

<mark style="background-color:violet;">$MLD Allocation (Overview)</mark>

<figure><img src="https://240811135-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLPnuX70nxhO34pJ0NtzF%2Fuploads%2F7dyRSZlpISi9Y8m1MISd%2Fpie%20chart-%20tokenomics%20(3).jpg?alt=media&amp;token=f1bfb4f2-4de9-4aba-8e1c-5fad4f81ca58" alt=""><figcaption></figcaption></figure>

<mark style="background-color:violet;">$MLD Allocation (Details)</mark>

<figure><img src="https://240811135-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLPnuX70nxhO34pJ0NtzF%2Fuploads%2F29FZ8xev6cTRlW5W4W9g%2Ftokenomics.jpg?alt=media&amp;token=1c0c6e1e-bfb4-4e5b-9dea-03d465fae437" alt=""><figcaption></figcaption></figure>

### $LORD Supply and Utility

Symbol: $LORD Total Supply: Unlimited

$LORD also follows the ERC-20 token standard and is deployed on the Polygon blockchain. $LORD serves as the earnings and utility token of the Metaspace ecosystem. All XPs earned in-game or from community rewards can be converted into $LORD. This means that when in-game activity goes up, there could be sudden spikes in the demand from players who want to convert their XPs to $LORD. Thus, there is no hard cap set for $LORD.&#x20;

Instead, $LORD is dynamically minted as players earn it through gameplay, and hence the token has no pre-minted supply or vesting schedule. $LORD can also be purchased from the marketplace. $LORD derives its primary utility from NFT and $MLD staking, where participants pay fees in $LORD to access these features.\
\
To balance the dynamic minting model and introduce sustainable deflationary pressure, $LORD is incorporated with burning mechanisms. Staking NFTs or $MLD in the marketplace requires a fee of 10 $LORD, and half of this fee (5 $LORD) is permanently burned in the process. In Arena mode, 20% of the fees collected in each match are permanently burned. The burning mechanisms help maintain the sustainability of the $LORD economy as participation grows.