10. Economic Design & Security

Phoenic Arena is built for redistribution, not extraction.

• Soft Token Sink: Tokens enter via participation. A portion is redistributed to winners, while a predefined percentage accrues to the protocol treasury as usage revenue.

• Sustainability: The system does not rely on constant growth or inflation. It remains viable as long as users value transparent competition.

• Security Strategy: Risks like state manipulation or custody theft are mitigated through on-chain immutability and non-custodial design. The protocol is designed to "fail safely" - any invalid resolution or transaction error results in a full revert.