ArenaVS (AVS) Tokenomics: Allocation and Distribution

ArenaVS, a Web3 platform that allows developers, digital artists, and creators to express themselves more interestingly, presents a token to support their ecosystem, namely $AVS.

$AVS is a native token from ArenaVS that has various uses, as well as profits that can be enjoyed by ArenaVS users.

What are the details about the $AVS token, including $AVS tokenomics? Read the review here.

What is $AVS Token?

The AVS token is the native utility token of ArenaVS, a Web3-based AI gaming platform that merges artificial intelligence with digital asset creation, competitive gaming, and community engagement. 

ArenaVS aims to empower creators, gamers, and developers with decentralized tools, and AVS is the fuel that powers this dynamic ecosystem.

Read Also: What is ArenaVS (AVS)? Web3 Powered by AI and $AVS Token

$AVS Token Utilities

The AVS token serves multiple roles within the ArenaVS ecosystem, including:

1. Marketplace Currency

AVS is used to buy, sell, and trade NFTs within ArenaVS’s native marketplace. 

This includes in-game items, characters, digital wearables, and other user-generated content that enhance gameplay and experience.

2. Access to Premium AI Tools

ArenaVS integrates AI-powered creation tools such as image and character generators.

Accessing more advanced or exclusive features typically requires AVS, positioning it as a token of access as well as exchange.

3. Staking and Passive Rewards

Holders of AVS can stake their tokens on the platform. Staking not only provides yield but can also unlock:

• Access to exclusive AI models
• Discounts on platform fees
• Governance rights (see below)

4. Earning Mechanism

Users can earn AVS tokens through:

• Completing AI-based challenges
• Creating and selling digital assets
• Engaging in gameplay tournaments and community events
• Participating in creator campaigns or bounty tasks

Read Also: Treasure NFT Marketplace Overview

5. Governance and Decision Making

ArenaVS incorporates a DAO-like governance system, where AVS holders can vote on key decisions, such as:

• Feature updates
• Approval of new AI agents
• Community rewards and partnerships

ArenaVS (AVS) Tokenomics

Total Supply: 800,000,000 AVS

This is a fixed cap, meaning no more than 800 million AVS will ever exist, helping maintain scarcity and long-term value.

Token Allocation includes:

• Community rewards and airdrops

• Team and development

• Liquidity pool and staking incentives

• Ecosystem growth and marketing

Value Support and Deflationary Elements

While AVS has a fixed supply, deflationary mechanics may be implemented, such as:

• Burning a portion of the transaction fees

• Time-locked staking to reduce circulating supply

• Limited access events that consume AVS tokens

This encourages long-term holding (HODLing) and reduces sell pressure.

Vesting and Token Release

To prevent dumping by insiders, many token allocations (especially team and reserve) follow a vesting schedule, typically like:

• Cliff period: No tokens released for 6–12 months

• Gradual unlock: Monthly or quarterly over 1–2 years

This ensures gradual circulation and aligns team interests with community growth.

Final Note

The AVS token powers the ArenaVS platform, supporting both community growth and platform development. 

With a fixed supply of 800 million tokens, its distribution is carefully planned to build a sustainable and engaging ecosystem.

35% of AVS is used for community rewards, like airdrops, staking bonuses, and user engagement incentives.

20% is allocated to the development team to fund the platform’s AI tools, features, and long-term improvements.

15% goes to staking rewards, encouraging users to hold their tokens and support network security.

15% supports ecosystem growth, including partnerships and marketing.

10% is set aside for liquidity to ensure smooth trading on exchanges.

5% is reserved for future needs or emergencies.

This structure helps ArenaVS stay balanced, rewarding users, funding innovation, and building a strong, long-lasting platform for AI and Web3 gaming.

FAQ

1. What is the AVS token used for in ArenaVS?

The AVS token is the core utility token of the ArenaVS platform. It is used for buying NFTs, accessing premium AI tools, earning staking rewards, participating in governance, and paying for in-platform services.

2. How can I earn AVS tokens?

You can earn AVS tokens by participating in community events, staking, completing tasks or quests, selling NFTs, and engaging in gameplay challenges on the ArenaVS platform.

3. Is the AVS token supply limited?

Yes. AVS has a fixed maximum supply of 800 million tokens, ensuring scarcity and helping preserve long-term token value.

4. Can I stake AVS tokens for rewards?

Yes. AVS holders can stake their tokens to earn passive income and unlock exclusive features such as advanced AI tools, governance access, and fee discounts.

5. How is the AVS token distributed?

AVS is distributed across several categories:

• 35% for community incentives,
• 20% for development and the core team,
• 15% for staking rewards,
• 15% for ecosystem growth,
• 10% for liquidity provisioning,
• and 5% for reserves or future use.