# Tokenomics

ESPL Arena's native token is $ARENA - a BEP20 token chiefly minted on the BNB Chain (formerly known as the Binance Smart Chain). This will be the primary token of the ESPL Arena ecosystem and an be used for participating in game launches, P2E rewards, liquidity mining and most importantly — utility within the ESPL Arena platform’s ecosystem.

The tokens will be issued through a Token Generation Event (TGE) with Pancakeswap hosting an Initial Farm Offering.

### Distribution

The $ARENA token's main purpose is to be distributed as a prize for competitive tournaments and to be the currency of the prize pool on the ESPL Arena and UGT3 platforms. The token will also be sold during the TGE to interested holders.

For more details on our distribution, please refer to our [token release schedue](https://espl.gitbook.io/espl-arena-litepaper/tokenomics/token-release-schedule-trs).

### Consumption

There are four main pillars of ESPL Arena that accordingly form the main pillars of the $ARENA economy.

Gamers will be able to use $ARENA to access more rewarding features on the ESPL platform and ecosystem. Next Guilds will be able to use these tokens to drive campaigns, boost engagement and catalyse user acquisition. Publishers can fund prize pools and establish an esports scene for their games. Brands can also use such tokens to organise sponsored tournaments or to sponsor players on the platform.

As we continue to develop and build the ESPL Arena platform, we are also building the ecosystem to be rewarding to its users, especially those who are committed to supporting the esports scene in web3 for the long haul.
