FAVES (NFT Stocks) Sale
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Favrr Tokenomics
Last updated
In this chapter, I will provide a detailed explanation of FAVEs, with a particular focus on Celeb FAVEs, as they represent the most significant, primary, and complex use case within the Favrr ecosystem. Given their unique mechanics, FAVE sales for celebrities will serve as the baseline model for understanding how the system operates.
Other categories of FAVEs—such as things, ideas, and places—follow a simplified version of this model. Unlike Celeb FAVEs, these categories do not require allocation mechanisms tied to individual entities, making their structures more straightforward. By first establishing the framework for Celeb FAVE sales, it becomes easier to grasp how FAVEs function across the broader ecosystem.
The main source of funds for Favrr is the sale of ERC1155 tokens, known as FAVEs NFTs. They will be made available initially for 1-7 days to determine their market price and will be moved to an $Favrr AMM pool afterwards. As more and more NFTs are purchased, the price of those remaining in the curve will incrementally grow, until the market decides the price is no longer reasonable and stops purchasing. Each FAVEs will be launched on a bonding curve first and then sold on its own AMM pool.
Celebrity and Favrr Foundation can dedicate up to 1/3rd of their tokens (so 11% of the total supply each) to the curve. Favrr will add the remaining tokens up to 500,000 for each celebrity NFTs for sale to the public. Technically this means that the curve might have less than 500 000 tokens for sale (if Celebrity and Foundation allocations are low). Proceeds from the curve will be split pro-rata to their contributors with the Favrr share going towards AMM liquidity for the NFTs.
The remaining Celebrity and Foundation tokens (whatever they may be) will trigger a 24 linear month vesting period after the curve sale:
Where the price is determined by this formula: where I is the initial starting point (which is usually 1 $Fvarr) and D is quantity that has been sold during IFO.
Selling all the tokens from the curve (an unlikely scenario) would be equivalent to raising 8.83 MM USD, while selling 1/5th of the tokens (100,000) would be the equivalent of raising 166,669 USD. There will be numerous sales of celebrity NFTs in parallel, so an exact raise cannot be determined. Furthermore, Favrr will regularly issue FAVE NFTs for different celebrities, each launched on an individual bonding curve. Discounts on the NFT FAVEs value are given to $Favrr stakers, but are not accounted for when calculating the raise amounts per curve.
The bonding curve sale is limited to 1 - 7 days, until an optimal market price is established. The optimal price can be defined as that immediately below the price at which market participants stop buying the asset. At that point, an internal AMM pool will be created, using the staked $Favrr tokens by users (described in Staking). The remaining FAVE NFTs will be taken out of the bonding curve and added to the AMM pool paired against $Favrr. The proportion of $Favrr to NFT will be adjusted so as to allow selling FAVE NFTs at the established optimal market price from the curve.
