FAVEs (ERC 1155 aka Stock NFT) -Intro
Favrr gives retail investors the opportunity to own “stocks” from the NFT of their favorite celebrities (or people, things, places, etc) at affordable prices. Any holder of a FAVE stock will receive a dividend-like passive income in the future when a stock of the same kind is traded and when a Fandom NFT for that celebrity is sold. The dividend distribution is dependent on Favrr obtaining a license for the stock NFTs as a security asset. Each celebrity stock has 1,000,000 fractional shares - 33% are allocated to the celebrity themselves, 33% for charity patronage. The celebrity can choose a charity of their choice, however, if they take no stance on their stock NFTs, Favrr’s community will decide how their NFTs are spent. Furthermore, the community can also decide via governance vote how the shares of the Foundation are allocated, after which the shares will be sold to fund the selected charity. The remaining 34% (preferably 50%) are made available to the public via a bonding curve initially, and then moved permanently to an internal AMM pool.
The project will progress through three distinct phases, each with specific mechanics and incentives:
Phase 0 - Initial Distribution: During this phase, FAVEs will be distributed through the Initial Fan Offering (IFO) and trading activities. Passive incentives will primarily consist of free promotional airdrops and potential price appreciation, with no additional rewards provided.
Phase 1 - Utility and Passive Reward Period: During this initial phase, FAVEs (ERC-1155 stock NFTs) will not generate direct dividend distributions for holders. Instead, they will offer compelling passive rewards through the Perpetual Reward Pool, ensuring early adopters benefit from platform engagement.
To enhance intrinsic value, we are introducing a "fun" utility—an interactive and strategic game mechanic that directly ties into each FAVE’s theme. Holders of a specific FAVE will gain exclusive access to a binary prediction game centered around its subject.
For example, holders of the Trump FAVE can participate in a Trump-related binary prediction game, where they stake their FAVEs on one of two possible outcomes. The winning side claims the losing side’s FAVEs, creating a dynamic, high-stakes experience that drives both engagement and demand.
This game utility serves as the exclusive gateway to participation, reinforcing scarcity and desirability. As demand for participation grows, so does the inherent value of each FAVE—creating a straightforward, engaging, and self-sustaining ecosystem.
Phase 2 - Securities-Compliant Operations (Trigger Dependent): Phase 2 will commence if and when Favrr secures a securities registration and license for stock NFTs (referred to as "the License"). Once operational under this framework, holders of celebrity shares will no longer receive rewards from the Perpetual Reward Pool. Instead, they will earn dividends derived from subsequent sales of the same stock and related celebrity NFTs. It is important to note that Phase 2 is not guaranteed. If obtaining the necessary license is not feasible, the high rewards from the Perpetual Reward Pool will continue indefinitely, supporting the long-term engagement of the platform.
This phased approach ensures adaptability to regulatory changes while providing consistent value to holders at every stage of the project.
During Phase 1 of Favrr stock (FAVE) NFTs will not provide dividends of any kind to their holders. Dividends will be pending a registration and license to be disbursed in a lawfully compliant manner. If the stock NFTs cannot be registered as a security, the dividend distribution will not be initiated post-Phase 1 due to regulatory restrictions.
3. Perpetual Demand and Tradeability of FAVEs
The Prediction Game creates constant demand for FAVEs by tying their utility to ongoing real-world events.
Increased Demand for FAVEs:
As more users seek to participate in the Prediction Game, the demand for FAVEs naturally grows.
This increases the market value of FAVEs on the exchange, giving holders the option to sell their stake if they choose not to participate in the game.
Perpetual Game Cycle:
New real-world events will continuously generate new prediction challenges for each FAVE category.
This ensures that FAVEs maintain their intrinsic value through their ongoing utility, beyond just financial speculation.
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