# 5. Economic modeling

SUMATI WORLD adopts a dual token system of Alphabet Coin, Smat (Governance Coin), and PVOW (Derivative Coin), and combines them with the NFT ecosystem to realize a decentralized economic cycle. Smat, as the Governance Coin, is responsible for the stability of the economic system and its long-term sustainable development, while PVOW, as the Derivative Coin, is tightly integrated with the gameplay, NFT assets, and economic interactions, and offers liquidity and a variety of application scenarios for the players. PVOW is a derivative coin that is closely integrated with gameplay, NFT assets, and economic interactions to provide players with liquidity and multiple applications. This model ensures the sustainability of the SUMATI WORLD economy while promoting the growth of the NFT ecosystem and the PVP/PVE economy.

### 5.1 Smat (governance currency)

Smat (Summati Token) is the core governance coin of SUMATI WORLD, with a fixed supply and cannot be issued in increments. smat is mainly used for governance, economic regulation, NFT empowerment, and PVOW exchange.

Total supply: 1,000,000,000,000,000,000,000

**Initial allocation:**

* Private Sales: 2.00%
* Liquidity: 3.00%
* NFT Mining: 50.00%
* Team & Advisors: 15.00%
* Ecosystem Development: 15.00%
* Smati DAO Treasury: 10.00%
* Community Incentives: 5.00%

**Function:**

* Community Governance: Smat holders can participate in voting on key economic parameters such as PVOW release rates, NFT casting rules, and exchange ratios.
* Individual Conversion: Smat can be converted to PVOW at a fixed rate (e.g., 1 Smat = 100 PVOW), but PVOW cannot be reversed to convert to Smat in order to maintain the scarcity of Smat.
* NFT Enhancement: Pledging Smat can enhance NFT functions, such as increasing the success rate of equipment enhancement, increasing the mining efficiency of Sarira NFT, and so on.

### 5.2 PVOW (derivative coins)

PVOW (Play Value of World) is the circulation coin of SUMATI WORLD, forming a ratio of 1:10 with Smat. PVOW is mainly used for NFT trading, equipment casting, in-game consumption, etc. Consumption of PVOW creates new game assets, and at the same time, it is recovered through smart contracts to maintain the balance between supply and demand in the market.

Total supply: 1 billion pieces&#x20;

Initial allocation:

* 60% (600 million): locked in smart contracts and gradually released through NFT mining, task completion, and Smat pledges.
* 20% (200 million): Initial airdrops and pre-sales, prioritized for distribution to NFT holders.
* 10% (100 million pieces): injected into a decentralized exchange (DEX) to provide liquidity.
* 10% (100 million pieces): Retained in the DAO treasury for buybacks and rewards.

Function:

* NFT Trading and Casting: Payment of NFT casting fees, disintegration fees, and market transaction fees.
* In-game spending: buying equipment, upgrading NFTs, taming mounts, etc.
* Circulation mechanism: PVOW is produced through activities and then consumed in NFT or returned to the vault to maintain the stability of the token economy.

### 5.3 Smat in relation to PVOW

Smat and PVOW form a solid economic system through the mechanisms of one-way exchange, pledge mining, and NFT empowerment, which ensures the balance between supply and demand of PVOW and strengthens the value of Smat as a core governance asset.

* Single redemption: Smat can be exchanged for PVOW at a ratio of 1:100, but PVOW cannot be reversed for Smat in order to maintain the scarcity and governance value of Smat.
* Generation Mechanism: Players can pledge Smat to release locked-in PVOW, which promotes the PVOW economic cycle and enhances the demand for long-term holding of Smat.
* Value Binding: The circulation of PVOW is controlled by the Smat pledge, while the NFT ecosystem provides consumption scenarios to ensure a steady growth in demand for PVOW.
