> For the complete documentation index, see [llms.txt](https://pepa-labs.gitbook.io/pepa-arcade-1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pepa-labs.gitbook.io/pepa-arcade-1/tokenomics/in-game-token.md).

# In-game Token

The PEPA in-game token is an integral component of our blockchain-based gaming economy. It represents a fluid digital asset with an unlimited supply, and it can be exchanged for fiat currency, thus enhancing the potential for real-world benefits and incentives.

In-game tokens can be generated in various ways within the PEPA ecosystem. Players can earn in-game tokens through their active engagement in a myriad of gameplay elements including daily check-ins, task completion, exploration of the game map, interaction with DeFi protocols, and selling resources acquired through in-game labor. Participation in beta testing also offers an additional avenue for players to accrue PEPA in-game tokens, creating an incentivized environment for continuous player interaction.

In terms of utility, the PEPA in-game token extends far beyond a mere in-game currency. It is utilized in a range of in-game activities including the acquisition of in-game props, leveling up items, infrastructure, characters, and pets. It also acts as a guild commitment fee and is used in the payment of taxes within the PEPA secondary market.

One key feature of our in-game token economy is the implementation of a dynamic taxation system. When players wish to cash out their in-game tokens, a tax between 2% to 15% is applied. This tax is inversely proportional to the duration of holding the in-game tokens; the longer the tokens are held, the lower the tax rate, incentivizing players to remain engaged and invested in our gaming ecosystem for longer periods. This mechanism ensures a stable in-game economy while rewarding players who demonstrate long-term commitment.

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