# Milk & Mocha Metaverse

The Milk & Mocha game ecosystem is designed as a self-sustaining, token-powered economy where $HUGS serves as the primary currency for gameplay, rewards, and progression. All in-game actions — from entering mini-games to unlocking cosmetic upgrades — are linked to $HUGS, ensuring that player activity directly influences token demand and circulation.

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At the heart of the system is a **token loop**. Players spend $HUGS to enter games, participate in tournaments, or unlock special features. A portion of this spend is recycled into the **reward pool**, distributed back to players as performance-based prizes. Another portion is **burned permanently**, creating consistent deflation and supporting long-term value. The remaining portion funds game development, seasonal events, and ecosystem expansion. This closed-loop model ensures that tokens flow continuously between players, the reward system, and deflationary sinks.

Spent tokens are split between three sinks:

1. **Reward Pool** — redistributed to players based on performance, rankings, or event achievements.
2. **Burn Mechanism** — permanently removes a percentage of tokens from supply to maintain scarcity.
3. **Ecosystem Treasury** — funds game development, seasonal content, and prize expansions

Further game and metaverse documentation and information will be released as a stand alone paper
