# The Economy

The Underverse is more than a virtual world where players engage in criminal activities for power, respect, or money. It is a living, breathing economy regulated by smart contracts that mimic real-world economic movements.

The Underverse economy is driven by growth, the circulation of the TUG token, player participation as economic actors, and real-world behaviors within a laissez-faire market. Players can choose to become landlords, resource tycoons, weapon manufacturers, and more, with a growing tree of resources and items to be crafted. The strength of the economy lies in the ability to build assets from the ground up and utilize those assets in various actions and encounters within the game.

On the consumer side, players can purchase game-ready items, initially available through the storefront in major releases but eventually sourced directly from other players. On the producer side, players can create various items and weapons by extracting resources from land, refining these resources, and building production facilities needed to develop game-ready assets. By bringing together consumers and producers in in-game marketplaces, The Underverse is well-positioned to see increased demand for the TUG token, with a fixed supply of 370 million tokens.

### Liquidity pool&#x20;

By providing liquidity to TUG, TUC, and MATIC on a decentralized exchange, participants have the opportunity to earn liquidity pool tokens in return. This helps to facilitate the trading of these assets within the platform.&#x20;

### In-Game staking&#x20;

Players have the option to stake their TUG tokens in exchange for TUC tokens and exclusive NFTs. The $TUG tokens can then be used in various in-game activities, such as bribing officials, acquiring resources, speeding up construction and crafting processes, reducing cooldown times, and maintaining buildings.&#x20;

### Lending (Loan Sharks)&#x20;

The Underverse offers players the opportunity to become loan sharks, individuals who lend TUG tokens to other players, typically new players, in exchange for a percentage of the loan. To qualify for this role, players must have a minimum of USD 1,000 worth of TUG in their wallet. The number of available loan shark spots will be limited, initially set at 10 and then adjusted based on the total active player population at a rate of 1.5%. The TUG received through lending can be used to purchase land, properties, and certain items needed for organized heists or international operations within the game.&#x20;

### TAX policy&#x20;

Tax policy refers to the rules and regulations that govern the collection and distribution of TUC & TUG within the Ecosystem. According to the policy, all of the funds that are collected through taxation are directed into The Underverse Treasury (TUT), which is used to fund various aspects of the Ecosystem operation and development. The tax rate is set at 17% of in-game earnings, which includes sales revenue, rewards, and other forms of income.

### Nodes&#x20;

The Underverse is planning to develop its own blockchain network, called the Underverse Network, which will be powered by the TUG token.

Community members will have the opportunity to support the network by operating TUG Nodes from their personal computers and earn rewards for their contributions, such as TUG tokens, exclusive NFTs, and opportunities to support the growth of The Underverse ecosystem.

<figure><img src="https://lh3.googleusercontent.com/CzXPFZ2pX7erb_TNHuus3xBdd2ZLqEOa7GWrGak23YWyBtKtVw1tYZFyoZ8TIrT9PlNQ5DGF0LUktiNG4k2Yow6ENgUdFbD7Yy7-TwYez20ggN3kg3MrXBZEKeRFZwlQ1P66lqvRHJqVRXjMMzxjyA" alt=""><figcaption><p>The Underverse Economy Diagram</p></figcaption></figure>
