$FCTR Tokenomics and Utility

Table of Content

<aside> 🚀 The Factor community will be key to the success of the project. We believe that rewarding early community members and protocol contributors is an effective way to foster adoption and decentralization. FactorDAO is aiming to stick around for the long term, and our tokenomics will ensure long-term incentives to build and grow a resilient platform led by its community.

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Overview of $FCTR

Factor is an on-chain asset management platform aggregating multiple DeFi assets under one roof, and enabling the creation of novel instruments and strategies. It is a one-stop solution for protocols looking to boost TVL, treasury managers looking to hedge exposure and generate yield, or aspiring asset managers looking to build on-chain track records. The protocol earns fees on vault TVL and profits.
$FCTR is the utility token for the Factor platform. The max supply of $FCTR will be capped at 100.000.000 and there will be zero emissions beyond this number. Over 80% of $FCTR’s supply will be distributed directly to the community. No runoff inflationary mechanisms, no Ponzi-like tokenomics.
$FCTR holders have the ability to stake and lock $FCTR and receive $veFCTR (vote-escrowed $FCTR). $veFCTR has two important benefits:
- Governance rights to direct protocol fees and emissions, [whitelist asset]?
- A 50% share of platform revenue

Token Allocations

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There will only ever be 100,000,000 $FCTR. This is the capped maximum supply. No further $FCTR tokens can be minted.
An early bootstrapping allocation of 4.2% was distributed at a price of 0.05 (an FDV of $5,000,000, vested linearly over 12 months). This was in order to facilitate the smart contracts audits, development, legal, and marketing required for launch.
The team tokens are vested linearly over 24 months. Unlike for public sale participants, the bootstrapping supporters and team tokens do not accumulate $veFCTR while vested and are required to be unlocked and staked in order to do so. This is to ensure decentralization and fair distribution and rewards for all participants.

Tokenomics and Emission Schedule

Following the public sale, at launch, 32.51% of the supply will be in circulation with slow and steady emissions over 3.5 years. No VCs and no sudden unlocks.

Allocations	Portions	Schedule
Treasury Reserve	50%	Released over 3.5 years as DAO incentives
Ecosystem Incentives	20.8%	Immediately available as growth incentives
Team	15%	24 months linear vesting post TGE
Bootstrapping Round	4.2%	12 months linear vesting post TGE
Public Round	10%	Non-vested

$veFCTR

Factor offers token holders the option to lock their $FCTR tokens in exchange for $veFCTR tokens, with longer locking periods yielding more $veFCTR. The $veFCTR tokens received for locking $FCTR are non-transferable, and their amount gradually decays until the locking period expires and the user can reclaim their original $FCTR.
$veFCTR comes with a range of benefits, including the ability to create and vote on DAO proposals to direct fees and emissions, which could greatly benefit protocols, treasuries, or individuals interacting with Factor.
In addition, $veFCTR token holders receive a proportional share of 50% of all platform fees (with the remaining 50% going to the DAO treasury).
We have taken the best of ve- and real-yield tokenomics to provide long-term incentives to stakeholders, protect the project from yield mercenaries, and serve as an anti-whale mechanism.