FJO Token
Defining the utility of the FJO token and tokenomics.
Discovery Starts Here
Prior to the introduction of the token, Fjord Foundry already found massive success, generating over $25mm in revenue, supporting over 600 project communities with a colossal $1.4b in volume, 88k unique wallets and over 231k swaps.
As strong believers in free and open access to new ideas, FJO will never be used as a mechanism to gate access to projects launching through the platform. Since the inception of Fjord V2 (launched December 2023), the platform has generated $9mm in revenues, representing a yearly revenue opportunity of over $30mm - assuming no growth.
As such, the initial token utility is straightforward. The protocol will use at least 90% of the profits generated across all products now (and any released in the future) to repurchase FJO from the open market via TWAP orders. Prior to staking going live, these tokens will be burned, deflating supply over time. No emissions. No unsustainable incentives programs. Pure value delivery.
To demonstrate the potential, a (oversimplified) table is included below simulating the percentage of the terminal supply the protocol could burn assuming an FDV range and annual revenue rate (ARR) figure:
| $10mm ARR | $20mm ARR | $30mm ARR | $40mm ARR | $50mm ARR | |
|---|---|---|---|---|---|
100mm FDV | 10% | 20% | 30% | 40% | 50% |
200mm FDV | 5% | 10% | 15% | 20% | 25% |
300mm FDV | 3.33% | 6.67% | 10% | 13.33% | 16.67% |
400mm FDV | 2.5% | 5% | 7.5% | 10% | 12.5% |
500mm FDV | 2% | 4% | 6% | 8% | 10% |
When staking goes live, the buyback and burn mechanism will split into buybacks that will be allocated towards both burns and staking rewards, allowing stakers to accrue additional protocol ownership over time.
The Staking page will be populated with staking mechanism information closer towards when staking goes live.
Common Operating Costs
Fjord Foundry works with a number of external partners as a means of expanding the business in sustainable ways that ultimately are within the context of delivering maximum value back to tokenholders. Common cost factors include the following:
Referrals: to incentivize others to bring in quality projects to the platform, referral arrangements exist between Fjord Foundry and handful of dealflow partners.
Curation: sell-side swap fees generated in project tokens are not held by Fjord Foundry and instead directed towards curators as compensation for project curation.
Supply Distribution
The total token supply is 100,000,000. The total FJO supply is fixed and is broken down in the following ways:
The vesting schedules and percentage allocation for each category are as follows:
| Category | Terms | Supply % |
|---|---|---|
Concave | 18 months linear vesting | 20% |
Team Equity | 6 month cliff, 24 months linear vesting | 15% |
Public Airdrop | 3 month linear vesting | ~4% |
Ecosystem Development | 32 months linear vesting | 9% |
Fjord LBP | No vesting | 7.5% |
Seed Round | 10% on TGE, 18 months linear vesting | ~14.5% |
Seed Extension | 10% on TGE, 18 months linear vesting | ~7% |
Treasury Shelf | 32 months linear vesting | ~15.5% |
Balancer DAO | 18 months linear vesting | 1.5% |
Liquidity Seeding | Minted on TGE; reserved | 1% |
Former Contributors | 6 month cliff, 24 months linear vesting | 5% |
Advisors | 6 month cliff, 12 month linear vesting | 0.25% |
Treasury Shelf: serves a number of purposes, but primarily for future CEX listings, market making and opportunistic fundraising.
Ecosystem Development: supports ecosystem growth which includes marketing efforts, partnerships and any other operations in-line with the protocol's long term growth strategy.
When staking goes live, only Concave, Seed, Seed Extension and Balancer DAO will be able to stake unvested tokens (in addition to liquid tokens). Naturally, public buyers (i.e. liquid token holders) will be able to stake all their FJO tokens.
Regarding the funding rounds, the following terms applied:
| Round Stage | Token Price | Valuation |
|---|---|---|
Seed | $0.20 | $20mm |
Seed Extension | $0.24 | $24mm |
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