# Tokenomics

![](https://1858217928-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVHBz0Vvi4Q7G72Y1Mmxy%2Fuploads%2F6cEOEOnuveyoKWl4cxjN%2FknightsSilver-128px.png?alt=media\&token=b97ddf91-e4fa-404c-beab-b8deee911a4f)

**$SILVER**

Our native ERC-20 token, $SILVER is rewarded through games and used to upgrade your Knight NFT's.

On each Arena game you win, an amount of $SILVER equal to 2% of the $MATIC you staked is won. If you lose, you still get .25% of $SILVER for your stake.

In the [Barracks](https://knights-kingdom-1.gitbook.io/knights-kingdom-whitepaper/knights-kingdom/barracks), you can spend $SILVER to upgrade your knights which will have their own upgrade costs. $SILVER is burnt upon spending.

**Arena**

Every Arena game reqires Polygon's $MATIC token to be staked. A tax of 6% is applied when staking $MATIC into a game. The winner takes home both his stake and the opponent's, minus the 6% tax and another 2% which goes to the loser of the game, encouraging them to finish the match.