FACT Tokenomics
Tokenomics refers to the initial set up and rules that drive the supply and trading of tokens. The goals of healthy tokenomics are to foster stability and long-run increase in token price, rewarding jurors, aiding user growth, and facilitating liquidity.
The total supply of FACT tokens upon launch will be 10 million tokens. Minting tokens increases the total supply and burning tokens decreases them. The primary mechanism of inflation is minting FACT for rewarding jury participation, evidence gathering, and community building.
FACT supply increases in two ways.
- Rewarding users for their service on the protocol and client apps.
- Staking rewards.
Any FACT holder can stake their FACT for any length of time to earn modest rewards for helping to preserve the value of the token. The other stakers are those who stake on claims. While the FACT is locked in the claim pool, stakers to the claim earn modest rewards during the adjudication process.
FACT supply decreases in two ways.
- FACT is burned on certain protocol transactions in amounts that fluxuate with usage
- Each successful jury decision burns a variable amount of tokens
Tokenomics Simulator
You can track our evolving tokenomics plan in this Google Sheet where we parametarize as much as we can and try to make some rough estimates of the future token supply and price.