# Battle Card NFT Generation and Recycling Mechanism

**1. Generation Mechanism:**

1.1 **Limited Edition Card NFT Issuance at Game Launch**\
At the launch, 2,000 sets of Level 1 card decks will be issued in limited quantities. Players can obtain participation qualifications by minting the Genesis NFT "Ice and Fire Queen."

1.2 **Game Behavior Generation:**

* **Season Ladder Honors:** A small number of random NFT cards will be awarded based on ladder rankings at the end of each season.
* **Event Output:** When player demand is high, the game will periodically open limited edition summoning chest events, allowing players to obtain single NFT battle cards.
* **Tournament/Weekly Competitions:** A small number of random NFT cards will be awarded based on the rankings in weekly tournaments.
* **Other Event Honors:** NFT cards will be awarded as honors based on event results or player performance.\\

**2. Recycling Mechanism**\
To maintain overall economic stability, the following NFT recycling and destruction mechanisms are implemented:

* **Card Upgrade and Destruction:** When upgrading a card’s level, the system will automatically destroy the corresponding NFT, creating a consumption mechanism.
* **Tax Repurchase and Destruction:** Part of the funds from the tax system will be used to repurchase and destroy NFT cards to maintain an overall NFT deflation model. Specific details can be found in the tax system allocation table.
* **Revenue Repurchase and Destruction:** Some in-game revenue (e.g., transaction fees, item sales) will be used to repurchase NFTs from the market and destroy them.

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**3. Mechanism Objectives**

* **Asset Preservation:** Achieving supply-demand balance through "limited issuance + dynamic recycling" to ensure the long-term value of NFTs.
* **Behavioral Output:** Linking NFT generation to player activity and competitive performance, encouraging more positive gameplay behavior.
* **Liquidity Enhancement:** Clear recycling paths to improve NFT liquidity and monetization potential in secondary markets.
* **Continual Empowerment:** More NFT use cases will be introduced in the future, such as staking, lending, minting, and IP crossovers, to extend the long-term life and enhance the appreciation potential of NFTs.
