šŖFCTR Token
Overview
The FactorDAO (FCTR) token promotes the sustainability of the Factor ecosystem by incentivizing genuine community governance which shapes the protocol's development and trajectory. Implemented as an ERC20 token on Arbitrum, FCTR plays an essential role in governing the Factor platform through the FactorDAO and facilitating the Factor Flywheel.
By staking FCTR, Factorians are able to vote on FactorDAO governance processes as well as influence the distribution of ecosystem incentives via Factor Scale (protocol emissions) or Factor Boost (liquidity incentives). In return for securing the Factor ecosystem, FCTR stakers also earn a share of the protocol's revenue.
Factor Ethos
Factor operates based on principles of fairness, community involvement, and sustainable development. These core values are mirrored in our tokenomics model, which has been carefully designed to emphasize the equitable distribution of the majority of FCTR tokens directly to our community. This approach empowers our community members to actively participate in governing our protocol, ensuring their central role in decision-making processes.
With over 80% of the FCTR supply allocated to the community, we emphasize our trust in the collective wisdom and decision-making capabilities of an active community. We firmly believe that this strategy will drive DeFi innovation to unprecedented levels and nurture a collaborative ecosystem.
At A Glance
Name
FactorDAO
Symbol
FCTR
Token Launch Chain
Arbitrum One (ChainID: 42161)
Token Standard
ERC20 (Upgradeable)
Decimals
18
Total Supply
100,000,000
Max Supply
100,000,000
Token Generation Event
Feb-19-2023 09:27:37 PM +UTC (Tx Hash)
Contract Address (Proxy)
Tokenomics
Factor implements a gauge voting system that allocates greater voting weight for FCTR tokens which have been vested for longer periods. This aligns platform decentralized governance with long term economic incentives. To ensure the growth and evolution of a resilient platform via an actively involved community, the Factor ecosystem consists of 3 tokens:
FCTR: The main token of the Factor platform which represents total platform value. FCTR tokens can be traded on any ERC20 compatible DEXs.
veFCTR: Users receive veFCTR in return for staking FCTR. Each veFCTR represents a vote which can be allocated to influence various governance proposals.
esFCTR: The esFCTR token represents vested or locked rewards on the Factor platform. esFCTR is non-transferable and can be converted to FCTR after the 90-day vesting period.
Token Contract Addresses
The relevant contracts for each of the tokens can be found on the Contract Addresses page.
Each of the tokens above plays a vital role in securing the Factor ecosystem through permissionless and democratic means. Factor enforces a maximum supply cap of 100,000,000 FCTR tokens thereby ensuring no inflationary mechanisms nor any circumstances that could introduce unsustainable tokenomics. Factorians always maintain full ownership over their tokens and have the freedom to utilize the underlying value of the tokens however they see fit.
FactorDAO Interactive Calculations
Given the intricacy of the various governance levers, the sheets below aims to provide users with an intuitive understanding of Factor governance flows:
FCTR
Launched on Arbitrum in February 2023, FCTR was immediately distributed via a fair launch lasting 4 days on the Camelot DEX. With 13,394 participating users, the Fair Launch raised 7,578,366USDC whereupon 10% of FCTR total supply was distributed. The remaining FCTR tokens were allocated to ecosystem growth initiatives with linear vesting ending 4 years after the Token Generation Event (i.e. Feb-19-2027 09:27:37 PM +UTC).
FCTR Distribution
More details regarding the distribution of FCTR can be found here.
As Factor's main token, the FCTR token democratizes access to value exchange on the Factor platform. By owning FCTR tokens, users get the right to participate in Factor governance processes while also directly benefitting from ecosystem growth.
Adhering to the ERC20 token standard, FCTR maintains seamless compatibility with EVM-based smart contract and can be easily traded on any DEX (decentralized exchange). Long-term FCTR holders can then stake FCTR to become eligible to vote on various Factor initiatives. As such, FCTR effectively functions as the gateway for users to participate in the shared ownership of the Factor platform.
Market Data & Analytics
CoinGecko: https://www.coingecko.com/en/coins/factordao
CoinMarketCap: https://coinmarketcap.com/currencies/factor/
veFCTR
veFCTR (vote-escrow FCTR) is a special governance token that enables holders to vote on various FactorDAO governance proposals. Each veFCTR represents a single vote within the Factor ecosystem.
veFCTR is minted when FCTR tokens are staked into the FactorDAO governance contract. The ratio of veFCTR minted per FCTR is determined by the staking duration whereby a max lock of 2 years results in the maximum of 1veFCTR:1FCTR. The veFCTR balance is subject to a time-based linear decay which corresponds to the time left in the staking period for the underlying FCTR. In short, the longer the FCTR staking period, the more veFCTR allocated.
By staking FCTR tokens for up to a maximum of 2 years, FCTR stakers are also able increase their emissions multiplier (on Factor Scale) up till a maximum of 2.5x. In addition to staking duration, the emissions multiplier also rewards veFCTR holders with a larger proportion of veFCTR holdings as well as strategy deposit amounts. The emissions multiplier does not decay and remains the same for the period that the underlying FCTR is staked.
Emissions Multiplier Calculations
Please visit the Emissions Multiplier Calculations page if you would like to find out more about how emissions are distributed in favor of veFCTR holders.
Put simply, the longer the commitment, the more voting power and rewards (i.e. emissions) the FCTR staker receives. This discourages speculation and instead incentivizes prolonged engagement with the protocol. Critically, the conversion to veFCTR also limits the influence of large token holders (i.e. whales) thereby ensuring a more balanced governance process.
In addition to governance rights, 50% of the protocol's ongoing revenue is automatically distributed to veFCTR holders as USDC every month. This revenue sharing model greatly encourages long term FCTR staking which in turn aligns FCTR holders and Factor ecosystem growth.
Get veFCTR Tokens
When you stake FCTR tokens, they are converted into locked veFCTR. You can stake your FCTR tokens here.
More information regarding veFCTR can be found on Staking and Governance.
esFCTR
The esFCTR (escrowed FCTR) tokens represent rewards that are vested or locked for a certain period within the Factor protocol. Factor Scale rewards are emitted as esFCTR which can then be converted 1:1 to FCTR following a 90 day linear vesting schedule. Users are required to claim the underlying FCTR once the esFCTR vesting period is completed.
esFCTR minimizes short-term speculation as it is programmed to be non-transferable for the duration of the vesting period. As reward beneficiaries remain vested for this duration, there are more incentives for them to continue participating to ensure the future of the protocol.
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