Game Economy

K4 Rally has a dual-token tokenomics with $K4R being the native project token and $BRL being the farmable in-game item representing the gamers gained experience. A dual token setup gives us the ability to satisfy and balance all player types from casual arcade to play2earn.

The K4 Rally ecosystem consists of three main parts: the K4R token, the BRL token and the Treasury contracts.

A deflationary effect is build into the ecosystem by providing a burn mechanism for both tokens on the Treasury contract on each transaction inside the ecosystem.

The Treasury will also apply a tax on each transaction which will be used to provide liquidity to the DEX pools and so stabilize price and foster positive price action. Tax amount and destination liquidity pool (K4R/BRL) can be adjusted or turned on/off as needed.

The BRL token has technically a infinte supply, where a fixed amount will be minted at TGE for setting up the liquidity pool. Additional BRL will be minted as needed, and burned as soon as it is used in our ecosystem.

To prevent inflation of the BRL token there are different valves in place to regulate and adjust burn rate, faucets, sinks, buybacks and liquidity providing, on the token contract level with a tax on each transaction and ecosystem wide for K4R and BRL on the Treasury level.

K4R sell pressure will be avoided by splitting buy and sell funnels between our two tokens, where K4R main purpose is for value aquiring & building inside our ecosystem, like buying and leveling NFTs and other user owned assets; and the

BRL token is designed to be the day-to-day ingame currency for transaction, racing fees, p2e rewards and more, plus raising the gamers BRL level which gains him more daily drops as he levels up.

Through our tax and burn valves on the Treasury and token contracts, we aim to build an ecosystem where the K4R token can maintain a deflationary price evolution. Since the valves parameters can be adjusted anytime we are able to react to inflationary price action and maintain a stable/deflationary ecosystem.

We also encourage the players to stake their K4R tokens for gaining staking rewards and in-game benefits.

$K4R is the native project token that powers the K4 Rally Ecosystem. It allows the players: to buy NFTs and ingame items from our shop and nft marketplace, to claim rewards, to pay tournament starting fees, to pay pvp fees, to pay private tournament fees, to level NFTs and game items, to purchase ingame ownable assets, to pay for manager mode fees, to buy skins for his NFT car, to be use for staking and to use in the Board of Drivers.

The player will earn K4R tokens by participating and winning in tournaments, pvp sessions, competitions and manager mode. The player will also earn K4R as rewards for staking his tokens.

K4R price rewards will be balanced in such a way that the player will need & want them to use for progressing in-game which encourages the holding of the token to advance to higher levels.

$BRL is the protocol's farmable in-game token, representing the gamers gained experience implemented as a ERC20 token.

$BRL will be dropped as rewards to the player in his first 60 minutes of playing session each 24 hours during solo gameplay or participating in tournaments, private tournaments, manager mode or pvp gameplay. The daily dropped amount is based on the NFT car level.

$BRL is needed in-game to level the players BRL level, pay tournament starting fees, to pay pvp fees, to pay private tournament fees, to level NFTs and game items, to purchase in-game ownable assets, to pay for manager mode fees and to buy skins for his NFT car.

All in-game spend $BRL will be burned in the Treasury, all in-game dropped $BRL comes from TGE or will be minted as needed. Technically token supply is infinite.

Each $BRL transaction has a 3% tax. Tax amount is adjustable or can be turned off.

1% will be used to provide liquidity to the $K4R pool.

1% will be used to provide liquidity to the $BRL pool.

1% will be sold into BNB and provided to the Marketing wallet.

The player will earn BRL tokens by finishing his daily mandatory game session(see above), participating in tournaments, pvp sessions, competitions and manager mode.

In the center of our ecosystem is the Treasury contract.

All in-game spend K4R & BRL will be sent to the Treasury contract.

The contract will apply a 1% tax (default) to all incoming K4R and BRL tokens. The tax amount is adjustable or can be turned off.

The tax on incoming K4R or BRL tokens is provided to the K4R or BRL liquidity pool, respectively. Destination pool can be switched around. Default setup is:

1% tax on K4R -> K4R Liquidity Pool

1% tax on BRL -> BRL Liquidity Pool

Both tax streams can be provided to the same pool for max positive price action.

Of the remaining 99% K4R of incoming tokens to the Treasury contract, 50% will be burned directly on the token contract.

The remaining K4R in the Treasury contract is accumulated and paid out as needed to the wallets: Game Rewards, Staking, Marketing & Operations.

The Remaining BRL in the Treasury contract will be burned directly on the token contract.

With this Token & Treasury setup we create a sub-ecosystem for the P2E community and take off sell price pressure from the native ecosystem's token K4R. By adjustable token and treasury tax we gain price tools which are able to regulate the in-game economy and combat inflationary or deflationary market conditions. By providing part of the Treasury & Token tax to our liquidity pools it will help with growing the pool and so help in stabilizing price and volatility.