> For the complete documentation index, see [llms.txt](https://docs.shadowquest.games/shadow-quest-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.shadowquest.games/shadow-quest-whitepaper/usdhonor-tokenomics.md).

# $HONOR tokenomics

$HONOR is an ERC-20 token created by Shadow Quest NFT. It is the in-game currency used by the players to progress through the game.

* The total and maximum amount of $HONOR in Shadow Quest is 5,000,000,000 $HONOR.
* All 5bn $HONOR started in the Pool Wallet.&#x20;
* As HONOR is earned and won, the Pool Wallet is reduced and the Circulating supply rises.&#x20;
* As this happens, the staking Faucet is algorithmically reduced to ensure the ecosystem remains balanced and stable.
* Finally, $HONOR that is spent by the players in game will be recycled back into the Pool Wallet to be earned again and maintain a circular closed economy.

The goal is to develop, grow, and maintain an innovative, stable, self-sustaining, circular, balanced $HONOR economy that forms the foundations of a thriving $HONOR ecosystem for the game and future expansions.

Below is a simple diagram (but increasing in complexity as the game grows) showing the current state of the Circular Flow of $HONOR around the Shadow Quest ecosystem, with the algorithmic Faucet “B%” limiting the $HONOR earning rate to ensure the 5bn Total $HONOR limit is sustained.

<figure><img src="/files/bY8cQ48kERyku6pRtGPi" alt=""><figcaption><p>This diagram of the Flow of $HONOR around Shadow Quest ecosystem will be continually updated as we grow and add new Locations and Functionality</p></figcaption></figure>
