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# The Merchant
In **Cukies Island**, all in-game items can be freely traded using **UKI tokens**. The **Merchant** is an NPC who operates continuously, 24/7, allowing **instant transactions**.
Prices in the market are determined by **supply and demand**: an item’s value increases when it’s in high demand and drops when it’s oversupplied.
#### ***How it works***
At launch, the Merchant sets a **base buy and sell price** for each item, along with a **UKI token reserve** to guarantee liquidity. This ensures that players can sell any item even if it hasn’t been purchased by others yet.
As transactions occur, prices automatically adjust:
* Frequent **sales** lower the item’s value.
* Frequent **purchases** drive the price up.
When a player buys an item, the UKI used is added to that item’s reserve, allowing the **market itself to naturally balance** prices.
**For example:**
* If many players sell *wood*, its price will eventually fall until selling it’s no longer worthwhile.
* Conversely, if *stone* is in high demand, its price will rise, encouraging players to gather it in-game instead of buying it from the Merchant.
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