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Revenue & Treasury System

Understand how the Titan Combat System generates revenue, manages treasury funds, and distributes rewards to players.

💰 Revenue Sources​

The Titan Combat System generates revenue through the house edge mechanism:

  • Base House Edge: 5% on all Titan combats
  • Revenue Source: House edge generated from entry fees (5% base, reduced by bonuses)
  • Sustainability: Ensures system can pay out rewards long-term

How House Edge Works​

House Edge = Entry Fee × 5% (base)
Effective House Edge = Base House Edge - Bonuses
House Edge Reduction = Rarity Bonus + Level 30 Bonus

House Edge Reduction Bonuses:

Hero RarityRarity BonusLevel 30 BonusTotal Max Reduction
Common0%+0.5%0.5%
Rare+0.5%+1%1.5%
Epic+1%+1.5%2.5%
Mythic+1.5%+2%3.5%
Legendary+2%+2.5%4.5%

🏦 Treasury System​

The Reward Treasury is a separate wallet that holds ETH for paying out combat rewards:

  • Purpose: Secure storage for player rewards
  • Funding: Receives entry fees from combats
  • Payouts: Distributes rewards to victorious players
  • Top Profit Distribution: Weekly redistribution to top profit players
  • Transparency: All treasury operations are on-chain

Treasury Flow​

  1. Entry Fees: Players pay entry fees when requesting combat
  2. Treasury Deposit: Entry fees accumulate in treasury
  3. Combat Execution: Combats are executed and results determined
  4. Reward Distribution: Winners receive rewards from treasury
  5. Weekly Top Profit: Treasury redistributes funds to top profit players weekly

📊 Revenue Distribution​

When a player pays an entry fee for Titan combat, the funds are distributed as follows:

  1. Entry Fee Paid: Player pays entry fee (e.g., 0.1 ETH)
  2. House Edge Calculated: House edge = Entry Fee × (5% - Bonuses)
  3. House Edge Distribution: House edge is split between audit and community
  4. Player Rewards: Winners receive calculated rewards from treasury

Current Distribution (During Audit Phase)​

House edge is split 50/50:

  • 50% for Audit: Used for security audits and system verification
  • 50% for Community: Includes:
    • Referral commissions (25% of house edge)
    • Top profit rewards
    • Other community incentives

Example (No Bonuses):

  • Entry Fee: 0.1 ETH
  • House Edge: 0.005 ETH (5% of 0.1 ETH)
  • Audit Fund: 0.0025 ETH (50%)
  • Community Fund: 0.0025 ETH (50%)
    • Referral Commission: 0.00125 ETH (25% of house edge)
    • Remaining: 0.00125 ETH (for top profit and other incentives)
  • Player Reward Pool: 0.095 ETH → Used for combat rewards

Future Distribution (After Audit)​

Once audit is complete, distribution changes to:

  • 60% for Community: Includes referral commissions, top profit rewards, and community incentives
  • 25% for HONOR Buyback: Buy back $HONOR on Pons into the treasury
  • 15% for Maintenance: System operation and maintenance fees

Example (No Bonuses, After Audit):

  • Entry Fee: 0.1 ETH
  • House Edge: 0.005 ETH (5% of 0.1 ETH)
  • Community Fund: 0.003 ETH (60%)
    • Referral Commission: 0.00125 ETH (25% of house edge)
    • Remaining: 0.00175 ETH (for top profit and other incentives)
  • HONOR Buyback Fund: 0.00125 ETH (25%) → Buy back $HONOR on Pons
  • Maintenance Fund: 0.00075 ETH (15%)
  • Player Reward Pool: 0.095 ETH → Used for combat rewards