$LHU - Fixed Supply Token

$LHU is a fixed supply token and will have a floating value Token whose price is determined by the market on Exchange. $LHU will have a variety of uses in-game and on the Marketplace, primarily around the hero evolution system and marketplace. Here are some of the initial in-game uses where you can spend a Token or in-game currency.

• You will spend $LHU to increase a hero’s Evolution Tier at higher tiers of Evolution

• You will spend $LHU to increase a hero’s Skill Levels for their various skills

• You will spend $LHU to purchase NFTs in certain Drops

• You will spend $LHU to purchase NFTs other players make available on the Marketplace

Over time, as we add more game modes and activities to LHU, we will add additional in-game sinks for $LHU. $LHU will be distributed primarily as rewards to top performing players in Events and Tournaments. This will be our primary mechanism of introducing $LHU into circulation.

The circulating supply will be carefully regulated by the LHU team. We will not simply print more for each new player that is active in the game as some games do (contributing to the inflationary-triggered collapse we mentioned earlier). We will control the supply of $tokens that enter the ecosystem to find the equilibrium between supply and demand.

Between Marketplace activity and in-game use, the developer Treasury will accumulate a large holding of $LHU. The Treasury will also have the option to sell its $LHU holdings on Exchange when it chooses. There are two main motivations for doing so. As the price of $LHU is determined by market forces, we may determine that the supply of $LHU on Exchange under-serves the demand for $LHU, and as such the price of actions such as increasing a hero’s Evolution Tier is higher than we would like in order to provide a fun and fair game. In this instance, we may choose to sell $LHU holdings from the Treasury in order to lower the price and make these in-game activities more accessible to a wider swath of players.

Another motivation for selling $LHU is to generate revenue. The LHU team does require revenue to fuel the business: to pay for the servers, pay for the development team, pay for amazing art, fuel marketing and player growth, fund the development of additional game modes and even new games, etc. In these instances we will be very measured with the quantity of $LHU we sell into the marketplace relative to overall trading volume. As we’ve said earlier, our goal is to always put long-term stability of the system and engagement of players ahead of any short-term revenue concerns. In these ways, the LHU Treasury will behave in ways that you might expect from any central banking system that takes conservative, controlled action to affect monetary policy.