Neuron (NRN) serves multiple purposes within the AI Arena ecosystem:

• Staking for Rewards: NRN must be staked to be eligible for rewards in the game. Players can earn both NRN and NFT rewards through their participation in Ranked Battle competitions. Staking NRN is a requirement for winning additional NRN during Ranked Battles, and both NRN and NFTs must be staked to gain NFT rewards from the Merging Pool.

• Participating in Ranked Battles: Players use NRN to enhance their performance in Ranked Battles. They need to stake their NFTs and optionally allocate a percentage of the points they earn in a battle to the Merging Pool, which helps determine their chances of winning new NFTs. The chart illustrates how the economic flows work during the gaming competition, showing how NRN is staked, distributed, and rewarded at each competition round.

• Merging Pool: The Merging Pool is an essential component where gamers stake their NFTs and allocate a percentage of the points earned in competitions. The cumulative points allocated to the Merging Pool affect the probability of winning NFTs as prizes at the end of each round. This mechanism encourages players to actively engage with the in-game economy to improve their chances of acquiring NFTs.

• Rewards Structure: Rewards are determined based on several parameters, such as:

  1. Performance in Ranked Battles: NRN is rewarded in accordance with the performance of a player's NFT in the Ranked Battles.
  2. Points Allocation and NRN Staking: Players can decide how much of their earned points should go into the Merging Pool. Staking NRN is necessary for claiming these rewards. The rewards calculation process considers the points earned, points allocated to the Merging Pool, and the Elo ranking of the NFT, which reflects the player's skill and competitiveness.

• In-Game Items - Batteries: Batteries are in-game assets that power NFTs to compete in Ranked Battles. Each NFT has 10 Voltage units for daily fights, which are recharged every 24 hours. Players can purchase more Batteries to increase the number of fights their NFTs can participate in, further enhancing their chance to earn rewards. The price of Batteries will be determined once the Gaming Competition is launched.