> For the complete documentation index, see [llms.txt](https://the-fedz.gitbook.io/the-fedz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://the-fedz.gitbook.io/the-fedz/the-fedz-elements-rules-and-tokenomics.md).

# The Fedz Elements, Rules & Tokenomics

**The Fedz** is a decentralized financial strategy game and under-collateralized stablecoin experiment, where NFT holders serve as active participants in shaping a synthetic economy. By combining governance, liquidity provisioning, and structured incentives, The Fedz creates a living testbed for resilient monetary design — blending DeFi, Game Theory and macroeconomic experimentation.

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### 🪙 Token Structure: The 4 Core Tokens of The Fedz

The Fedz ecosystem uses a multi-token structure to maintain price stability, incentivize long-term commitment, and prevent panic-driven exits.

#### 1. 🎟️ **Fedz NFT** — Access Token

* **What it is:** A non-fungible token granting access to The Fedz.
* **Why it matters:** Acts as a commitment device for long-term stability and long-term commitment. Only holders can provide liquidity, stake capital, and most important print $FUSD.

#### 2. 💧 **LP Token** — Liquidity Position Token

* **What it is:** A token representing your share in the Uniswap V4 private liquidity pool (FUSD<>USDT).
* **Why it matters:** It proves your capital is backing $FUSD. The liquidity is partially locked using Uniswap V4 Hooks to prevent sudden exits, reinforcing trust and signaling to the market that FUSD is credibly backed.

#### 3. 🛡️ **sbFUSD** — Stability Buffer Token

* **What it is:** A non-transferable staking token earned by providing liquidity.
* **Why it matters:** Acts as a buffer that must be locked before FUSD can be minted. It ensures that value is committed before new FUSD enters circulation.

#### 4. 💵 $**FUSD** — The Fedz Dollar (Stablecoin)

* **What it is:** An under-collateralized synthetic dollar you can mint by burning sbFUSD 1:1.
* **Why it matters:** The core currency of the game. Its stability is reinforced not by over-collateralization but by the rules, sequencing, and commitment architecture of The Fedz.