# 8.4 Token & Point System Architecture

Billiards Hub operates a dual-token economy composed of the **8BALL utility token** and **BHP points**, each serving distinct roles within the ecosystem.

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### **1) 8BALL Token – Use Cases**

* Purchasing billiards equipment and in-game merchandise
* Paying for services at affiliated offline billiards clubs
* Customizing player avatars and NFT characters
* Participating in DAO governance and voting rights
* Receiving staking rewards
* Mining incentives for player activity and engagement

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### **2) BHP Points – Use Cases**

* Rewarding users for winning matches
* Placing bets on tournaments and special events
* Paying for services within partnered billiards venues
* Earning through point-based reward rankings
* Redeemable for select items (non-transferable outside the platform)

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### **3) Token Swap Ratio (Example)**

* **8BALL → BHP**: 1 8BALL = 100 BHP (direct conversion available)
* **BHP → 8BALL**: 100 BHP = 0.8 8BALL (includes a minor burn fee)
* *Note*: BHP points are strictly used within the ecosystem and are not tradable on external exchanges.

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### **4) Web3 & Blockchain Functionality**

* **NFT-Based Player Profiles**: Dynamic avatars that reflect skill progression and performance
* **Smart Contracts**: Ensure transparent, automated distribution of betting rewards and sponsorship funds
* **Decentralized Governance (DAO)**: Community-driven decisions for player sponsorships and ecosystem proposals
* **Staking Mechanism**: Users can lock 8BALL tokens to earn passive rewards and strengthen the platform’s economy
* **Action-to-Earn (A2E) System**: Reward distribution based on real gameplay participation