💲Tokenomics

A positive flywheel tokenomics for the $FAM token

The $FAM token has a intended max supply of 100 million tokens. For every MATIC in fees that is earned as protocol fees resulting from key purchases, we will mint an equivalent amount in $FAM tokens for the trader. The core utility of the $FAM token, is to primarily be staked in our dividends pool to earn MATIC emissions.

For every MATIC earned as protocol fees, half the MATIC will be used to purchase FAM token, and the remaining half will be used to form liquidity with FAM to create a rising price floor effect. Imagine that for every purchase in keys by users, an equivalent amount of FAM tokens is being bought up, and more trading liquidity is thus added. The net effect is a rising token price with deepening trading liquidity (protocol-locked-liquidity) which is beneficial for hardcore $FAM holders.

Eventually, protocol fees are also distributed back to $FAM holders in the form of MATIC. This creates a reward mechanism for $FAM holders where there are no inflationary mechanics, to promote holding $FAM. Instead, $FAM holders are rewarded by a rising price floor PLUS dividends! This makes holding $FAM tokens highly attractive.

Once fam.army hits sufficient amount of users, we will conduct community votes to either lower, or totally remove $FAM emissions for traders. We will progress towards a model where we promote long-term holding of keys where long-term key holders are given $FAM incentives etc.

In the near-future, we will also create automatic $FAM burning vaults to burn $FAM supply through protocol fees. This will push $FAM into becoming a deflationary real-yield token.

Some other key points to note:

• Remember, the higher the price of $FAM, the lesser the number of $FAM that will ever be minted into existence. In theory, the 100mil token supply may never be hit ever. How does this work? Imagine token is priced at $1, and we collected $100 of protocol fees. In this scenario, 100 $FAM tokens will be minted to reward traders. Imagine that price of token is now $5, with the same amount of protocol fees. We now need to only mint 20 $FAM tokens to reward traders. By coupling a rising price floor, we are certain that lesser and lesser $FAM tokens will be minted over time, creating a highly deflationary and high yield token!

• Holding $FAM tokens allows you to earn between 50% - 100% APR worth of MATIC yields that is obtained through protocol fees. This is going to be consistent throughout the next few months as we operate, and will be critical in promoting HODL-ING for hardcore $FAM holders.