> For the complete documentation index, see [llms.txt](https://guide.degenhive.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.degenhive.ai/introduction/gamenomics.md).

# GameNomics

Unveiling Game-nomics in DegenHive: The Role of HIVE and HONEY Tokens

DegenHive introduces a unique approach to in-game economics (game-nomics) through the utilization of two distinct tokens: HIVE and HONEY. These tokens play a crucial role in powering the platform's DeFi features, facilitating governance, and driving user engagement.

* **HIVE** is a native Sui coin that is used to accumulate energy points for a dragon-bee and is lockable for max 4 years with the dragon-bee. 
* **HONEY** is a native Sui [*closed-loop-token*](https://docs.sui.io/standards/closed-loop-token) with a 3% burn tax and is used to accumulate health points for a dragon-bee.  

<figure><img src="https://1315640612-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAUaSdxGnzMfLWsx4RQR9%2Fuploads%2FQm02i2dXhzmDwYowUIlK%2FDualEconomy.webp?alt=media&amp;token=709cbcce-ce6c-4945-9592-489c0c27c2fd" alt=""><figcaption><p>DegenHive's dual token economy</p></figcaption></figure>

## **Revenue-Driven Buybacks**

DegenHive generates revenue through various streams including its Automated Market Maker (AMM), fees on liquid staking rewards, and trading royalties from dragon-bee marketplace trading.

All protocol revenue is strategically used to:

1. Buyback SUI from the market
2. Use SUI to buyback HIVE and HONEY in a 50:50 ratio
3. Distribute HIVE and HONEY among dragon-bees based on HIVE and HONEY locked with them