> For the complete documentation index, see [llms.txt](https://fuddles.gitbook.io/fuddles-nft/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fuddles.gitbook.io/fuddles-nft/season-v/fuddles-in-game-transaction-mechanism.md).

# Fuddles IN-GAME Transaction Mechanism

Join for the art. Stay for the community. 🤝

The mechanism of Fuddles involves in-game transactions where players can use either $FUDSI tokens or $USDC tokens to purchase in-game tickets, enabling them to participate in various games. 

These transactions contribute to two different pools:

1. **$FUDSI Token Transactions Pool**:
   * 60% of the $FUDSI tokens collected from transactions will be allocated to an NFT Staking pool. This pool rewards users who stake their Fuddles or Fuddles Shiba Inu NFTs with additional $FUDSI tokens.
   * 30% of the $FUDSI tokens will be directed to a community rewards pool. This pool rewards participants to the gaming platform, possibly through various reward system.
   * 10% of the $FUDSI tokens will be burned. Burning tokens involves permanently removing them from circulation, which can contribute to reducing the token's total supply, increasing its value over time through scarcity.
2. **$USDC Token Transactions Pool**:
   * Initially, the $USDC tokens collected will be used to buy back $FUDSI tokens from the secondary market. This involves using the 100% of $USDC tokens to purchase $FUDSI tokens.
   * After the buy-back, the purchased $FUDSI tokens will then be allocated to a pool with the same distribution structure as the $FUDSI token transactions pool:
     * 60% to the NFT Staking pool.
     * 30% to the community rewards pool.
     * 10% burned.

This mechanism creates a cycle where both $FUDSI and $USDC transactions contribute to the overall ecosystem. $FUDSI transactions directly contribute to the token's utility and community incentives, while $USDC transactions facilitate liquidity and potentially stabilize the token's price through buy-backs. Additionally, the burning of a portion of $FUDSI tokens helps manage the token's supply dynamics.

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