# CHONK Overview

CHONK introduces a novel NFT x TOKEN Liquid Hybrid model through an innovative two-way escrow mechanism which solves the problem of liquidity in the NFT space. This innovative mechanism allows users to lock their CHONK NFTs in exchange for $CHONK tokens and vice versa, successfully blending 100% unique NFTs with the liquidity of an ERC-20 token. This not only creates a ultra hyper-deflationary NFT collection, but also supports deflation in the $CHONK token as users interact with the system.

### **Here are the main concepts that a user needs to know:** <a href="#here-are-the-main-concepts-that-a-user-needs-to-know" id="here-are-the-main-concepts-that-a-user-needs-to-know"></a>

### **Claiming Your $CHONK By Locking Your CHONK NFT in the CHONKTANK**

By locking your NFT in "The CHONKTANK" (our escrow contract), you can claim $CHONK tokens as a reward for securing your CHONK NFT to the CHONKTANK. From the claim, 3% of the $CHONK from the transaction is burned forever.

### **Retrieving Your NFT**

To retrieve your NFT back from the CHONKTANK, you must pay a set amount of $CHONK tokens back to the CHONKTANK. This payment includes the original claim amount, plus a 3% premium. Once paid, your NFT is released back to you. Similar to claiming the $CHONK token, 3% of the $CHONK from this transaction is burned forever. **The original user who locked their CHONK NFT in the CHONKTANK is the only one that can opt retrieve it back.**

### **NFT x TOKEN Swap Rates**

Each NFT is assigned a specific amount of $CHONK that can be claimed at any given time.&#x20;

Total Supply: 420,690,000,000 $CHONK tokens

Total NFT Supply: 1,000 CHONK NFTs

Each CHONK NFT is claimable for 420,690,000 $CHONK (less the 3% burn).

### **Freedom of Choice**

NFT holders have the freedom to pick and choose which NFTs you want to lock in "The CHONKTANK" and receive back, providing flexibility and control for users' participation.

### **The CHONK NFT x TOKEN LIQUID HYBRID model brings a wealth of game theory into play, which you can read about on the next page.** <a href="#the-nft-token-hybrid-model-brings-a-wealth-of-game-theory-into-play-which-you-can-read-about-here-at" id="the-nft-token-hybrid-model-brings-a-wealth-of-game-theory-into-play-which-you-can-read-about-here-at"></a>


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