The Economics of Phoenix Arena

In the Cao Wari empire's expansion throughout the galaxy, one of the ways the empire imposes their rule is through cultural imperialism. One of the tenets of these policies is the formation of Phoenix Arenas. Operating under the rule of the Cao Wari empire, the realm and the arena are required to operate economically with the de facto currency of the empire, the Wari token. As such, participants in the Cao Wari economy pay and get paid for their goods and services in Wari.

Besides the grandiose infrastructural development of the arena itself, a monument intended to display the magnificence and power of the empire as well as distill fear in their subjugates, the empire uses economic stimulus packages to incentivize their subjugates to conform to the imposed culture.

As such, the empire has provided a total supply of 370 million total Wari tokens for initializing the economy around the newly built Phoenix Arena #42069. Rapid cultural change is encouraged through high economic incentives that taper off over time.

Similarly, the empire has provided blacksmithing services that provide mystery boxes containing items that can be used by the participants of the arena.

The operators of Phoenix Arena, while acting as treasurers of these funds, only receive rewards in the form of Wari tokens through the operating fees they receive from arena entry fees, forging items for contestants or other services that they provide. The total amount the operators can receive is capped at 20% of the total supply.

Another utility the economic stimulus serves for the Cao Wari empire is to enable the ruthless mercenaries of their subjugated societies to rise up the economic and political ranks and begin expanding the economy around the arena after surviving their cultural indoctrination. A portion of the service fees generated throughout the economies go to a decentralized fund where Wari token holders will be able to vote on how the funds resources are used.