> For the complete documentation index, see [llms.txt](https://zootopia-docs.gitbook.io/zootopia.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://zootopia-docs.gitbook.io/zootopia.fun/battle-dynamics/editor.md).

# Tournament Mechanism

<figure><img src="/files/vXLL1XdOL07cX7a6Uogg" alt=""><figcaption></figcaption></figure>

The **Zoo AI Agent** is the driving force behind Zootopia.fun’s competitive ecosystem. By blending advanced AI-driven automation with tokenomics, the platform ensures a fair and engaging environment where animal-based memecoins compete in structured tournaments. Each battle is designed to foster excitement, community engagement, and sustained value creation across the ecosystem.

#### **Seasons, Rounds, and Battles**

The tournaments are divided into **seasons**, which are further broken down into **rounds** and **battles** to structure the competition in a progressive and dynamic manner.

* **Season Structure**:
  * Each season lasts **55 days**, hosting **16 participants**, **3 rounds**, and **7 battles**.
* **Rounds Breakdown**:
  * **Round 1**: 16 participants split into 4 battles, with **2 winners** (Winner + Runner-up) advancing from each.
  * **Round 2**: 8 winners compete in 2 battles, with 2 winners from each advancing to the final round.
  * **Round 3**: The final battle determines the **Season Winner** and **Runner-up**.
* **Battle Duration**:
  * Round 1 battles last **10 days**.
  * Rounds 2 and 3 battles last **5 days each**.

By progressively narrowing down participants and increasing stakes, the structure ensures an engaging experience for both communities and individual participants.

***

#### **How Winners Are Decided**

To ensure fairness, the **Zoo AI Agent** uses a transparent, data-driven approach to evaluate and decide winners for each battle.

The **Zoo AI Agent** evaluates participants using real-time metrics such as **Market Cap**, **Liquidity**, and **Community Engagement**. Scores are dynamically updated, allowing participants to influence outcomes through activity and engagement. The highest-scoring participant is the **Winner**, the second-highest is the **Runner-up**, and all metrics are recorded on-chain for transparency and fairness.

***

#### **Epochs: Timeframe for Battles**

Each battle occurs within an **epoch**, which represents the competition timeframe.

* **Duration**:
  * Epochs last **5 or 10 days** depending on the round.
* **Reset Mechanism**:
  * Metrics are reset for each epoch, allowing participants to focus on outperforming rivals during the specific battle period.
* **Dynamic Adjustments**:
  * The Zoo AI Agent adapts evaluation criteria based on market trends and activity levels, ensuring battles remain competitive and relevant.

#### **Reward Propagation**

The reward system in **Zootopia.fun** combines **battle-specific rewards** with **season-wide incentives** to drive engagement, incentivize participation, and ensure long-term sustainability. By leveraging the **Pool of Gold**, the **Season Pool**, and a **Deflationary Sell Tax**, the platform balances short-term competition with long-term value creation.

***

#### **Pool of Gold (Battle-Specific Rewards)**

* **Battle-Based Allocation**:

  For every battle, **10% of the token supply** from all participants is pooled into the **Pool of Gold**. For example, in a battle between **A**, **B**, **C**, and **D**, the Pool of Gold equals:

  **10% of A + 10% of B + 10% of C + 10% of D**.
* **Reward Flow**:
  * **Winner**:
    * Retains **10% of their own supply** for the next round.
    * Receives **60% of the losing participants' contributions**.

      Example: If **A wins**, they keep **10% of A** and receive **60% of B's and D's contributions**.
  * **Runner-Up**:
    * Retains **10% of their own supply** for the next round.
    * Receives **40% of the losing participants' contributions**.

      Example: If **C is the runner-up**, they keep **10% of C** and receive **40% of B's and D's contributions**.

This structure rewards top performers while redistributing losing participants’ tokens to sustain ecosystem growth.

<figure><img src="/files/NCqHnrftKmxy9xOV9MqE" alt=""><figcaption></figcaption></figure>

#### **Deflationary Sell Tax**

* **10% Tax on Losing Tokens**:

  When the losing participants’ tokens are sold to fund buybacks for the winners and runners-up, a **10% platform sell tax** is applied.
* **Burn Mechanism**:The sell tax is **burned**, permanently removing tokens from circulation, reducing supply, and creating deflationary pressure. This burn mechanism increases $ZOO's scarcity and value over time.

<figure><img src="/files/Ix6l0MBe1yHopu9S4ae6" alt=""><figcaption></figcaption></figure>

#### **Season Pool (Season-Wide Rewards)**

* **Entire Season Allocation**:

  At deployment, **5% of the total token supply** is reserved for the **Season Pool**, which operates independently of the Pool of Gold. Unlike the battle-specific Pool of Gold, the Season Pool spans the entire season and accumulates rewards over time.
* **Seasonal Rewards**:

  Winners and runners-up at the end of the season receive a significant share of the Season Pool. These rewards incentivize long-term participation, consistent performance, and active engagement across all battles.
* **Future Sustainability**:

  The Season Pool also ensures resources for future tournaments, supporting upcoming matches and promoting scalability.

<figure><img src="/files/orDQBp71sBB7SBGQCpnP" alt=""><figcaption></figcaption></figure>

#### **Key Features of Reward Propagation**

* **Battle-Specific Rewards (Pool of Gold)**: Allocated for each battle, the Pool of Gold rewards winners and runners-up immediately, based on contributions from all participants.
* **Season-Wide Rewards (Season Pool)**: Spanning the entire season, the Season Pool incentivizes consistent performance with significant end-of-season rewards.
* **Deflationary Tokenomics**: A **10% sell tax** on losing tokens is burned, reducing supply and increasing $ZOO’s value through scarcity.
* **Balanced Incentives**: Winners and runners-up are rewarded, while losing participants’ tokens sustain the ecosystem.
* **Sustainability and Scalability**: Tokens reserved for the Season Pool and deflationary mechanisms ensure the longevity of tournaments and scalability for future matches.

The **Pool of Gold** delivers instant, battle-specific rewards, while the **Season Pool** drives long-term engagement and performance. Combined with the deflationary sell tax, this system creates a thriving and balanced ecosystem for all participants.

#### **Excitement of Betting and Liquidity Flow**

* **Betting on Favorites**: Supporters can bet on their favorite tokens using $ZOO, aligning financial stakes with performance and encouraging communities to rally behind their teams.
* **Liquidity Mechanism**: Tokens paired with $ZOO in liquidity pools drive trading activity and market momentum. Losing tokens are sold to fund buybacks for winners and runners-up, enhancing liquidity and token value.

<figure><img src="/files/MTxWAfjm9RBaEHBxmtDI" alt=""><figcaption></figcaption></figure>

The AI Agent Tournaments in Zootopia.fun blend cutting-edge AI with innovative tokenomics, creating a unique Web3 battleground. By leveraging curated themes, transparent metrics, and sustainable reward systems, the platform fosters vibrant competition among animal-based memecoins. Whether it’s betting on favorites or cheering for underdogs, Zootopia.fun offers an engaging and rewarding experience for all participants in the crypto jungle.