Executive Summary
Last updated
Favrr Tokenomics
Last updated
Favrr presents 3 types of tokens to those investors - a utility token called Favrr ($Favrr), a fractional “FAVE” (a.k.a Stock) celebrity (or people and things) NFT and user-made (including celebs or Favrr) collectibles of celebrities (or people and things). Favrr aims to capture 10% of the NFT collectibles and fan secondary market over 10 years. NFTs had a trade volume of 24.7BN USD in 2022.
Favrr ($Favrr) is the only payment acceptable on the Favrr platform. The initial token supply is 10BN, but as there is a burn policy, that amount will decrease over time making the token ultimately deflationary. Furthermore, those who lock their $Favrr in the governance module can decide which charities receive donations from celebrities and the Favrr Foundation.
OTC (or Launchpads) - the OTC/launchpads allocation will be used for additional token purchases by investors directly or on launchpads. The purchases are from the company wallet at a set fixed price, not via an AMM pool with dynamic pricing.
Team - an allocation vested over time for the team as a reward for their continued efforts on the project.
Partnerships - tokens to be used in partnership deals as additional incentive.
Advisors - allocation given to advisors as remuneration for their efforts. Vested over time.
Marketing - token allocation used in marketing campaigns such as rewards for engagements, giveaways, referral rewards, etc.
Foundation - tokens which can be liquidated or otherwise utilized by the Foundation to fund its activities and causes.
Ecosystem fund - A reserve token allocation to be used for the further development and stabilization of the Favrr ecosystem.
Reward pool - perpetual reward allocation for Favrr users, who perform specific actions. Details in Perpetual reward pool.
Liquidity - tokens set aside to fund the initial Favrr liquidity pool.
Airdrop - rewards for early adopters who purchase ERC1155 or otherwise engage with initial content on Favrr.
Token sale. Favrr intends to raise funds continuously via its NFT celebrity “stocks”, which will be offered each on its dedicated bonding curve. However, an OTC allocation of $Favrr will allow users to purchase the utility tokens from Favrr directly at an initial price of $0.01. A total of 700MM tokens can be purchased directly from Favrr for a total of 7MM USD, assuming no price changes in $Favrr.
Core token value drivers. Apart from being used as a payment, $Favrr will have demand created by the company’s burn policy. Part of the tokens received as payments will be burned at regular intervals, creating demand and scarcity.
Token incentives. Stakers of the $Favrr token will have their $Favrr redistributed to internal pools paired with celebrity NFT stocks. Part of the trade fees generated will go to stakers, and part will go to other stockholders of the same celebrity. Liquidity providers and stakers both can increase their passive yield of $Favrr by locking their tokens for a predefined period of time. This policy was pioneered by Curve and is also applicable for double-locking for voting power in governance.
Disclaimer: Token Incentives
The token incentive mechanisms described in this section are subject to regulatory approval and compliance with applicable laws and regulations. Specifically, the mechanisms for providing liquidity to external and internal AMMs, staking rewards, redistribution of $Favrr tokens, and fee-sharing arrangements may currently meet the definition of a security under the U.S. Securities and Exchange Commission (SEC)'s current regulatory framework. At this time, these features is not implemented yet. However, we are optimistic about the evolving regulatory landscape under the leadership of the new SEC head (as of Dec 2024), who has demonstrated a crypto-friendly stance. Should SEC policy or guidance change to allow such mechanisms, we plan to deploy this model in full compliance with future regulations. Until then, these mechanisms are described here as part of our forward-looking vision for $Favrr's role in fostering a dynamic and engaging ecosystem. We will prioritize transparency and regulatory compliance in all token-related activities.
