$FOTON Buybacks
See: Why Buybacks Are Important Sources of Buyback Funds Redistribution of Buybacks Frequency and Weight of Buybacks Momentum Reserve's Role in Buybacks
The $FOTON token buyback mechanism is a core strategy designed to enhance the sustainability, value, and liquidity of the Flareporium ecosystem. By repurchasing $FOTON tokens from the open market at random times in approximate 6 hour intervals, Flareporium aims to ensure consistent reinvestment into its staking pools, thereby bolstering token stability and rewarding participants. The weight of each buyback is directly proportional to the fees generated from the ecosystem during the preceding timeframe. This page details the significance of buybacks, the source of funds, and the redistribution of repurchased tokens.
Why Buybacks Are Important
Token Value Support Buybacks help maintain and potentially increase the market value of $FOTON by reducing circulating supply and reinforcing demand.
Enhanced Liquidity By purchasing tokens from the market, Flareporium improves liquidity, making it easier for users to trade $FOTON.
Sustainable Staking Rewards A portion of repurchased tokens is redistributed into various staking pools, ensuring a steady and predictable reward system for ecosystem participants.
Community Confidence Regular buybacks, intended to be performed at 6-hour intervals, demonstrate Flareporium's commitment to its token holders and ecosystem, fostering trust and long-term engagement.
Sources of Buyback Funds
Funds for $FOTON buybacks are derived from multiple revenue streams within the Flareporium ecosystem:
Marketplace & Launchpad Fees
4% Transaction Fees: Collected when users purchase NFTs or assets on the marketplace.
8% Launchpad Fees: Paid during the minting of NFTs through the launchpad.
Allocation:
50% of fees to the Flareporium Team
40% to the Momentum Reserve (used for buybacks)
10% to the Flareporium Foundation
Flare Time Series Oracle (FTSO) Rewards
Flareporium’s FTSO will generate $FLR rewards from oracle operations, with 40% of these rewards allocated to the Momentum Reserve for buybacks.
Unclaimed Rewards
Any unclaimed staking rewards from the Yield Vault are returned to the Momentum Reserve and reallocated towards buybacks.
Redistribution of Buybacks
Repurchased $FOTON tokens are reintegrated into the ecosystem’s staking pools to maximize their utility and incentivize participant engagement. The distribution is as follows:
Staking Pool
Share of Buybacks
Purpose
Platform Rewards
20%
Enhance marketplace and ecosystem incentives.
NFT Staking Pool
20%
Reward long-term holders of Block Sapiens NFTs.
Governance Staking Pool
24%
Encourage active governance participation.
Liquidity Provider (LP)
36%
Incentivize liquidity providers for stability.
Frequency and Weight of Buybacks
To maintain consistency and support the Flareporium ecosystem, $FOTON buybacks will be executed approximately every 6 hours at a randomized time within each interval. This unpredictability prevents market manipulation and enhances stability. The weight of each buyback is determined by the total fees and revenues generated from all sources (e.g., marketplace transactions, FTSO rewards, and unclaimed staking rewards etc.) during the interval preceding the buyback. This dynamic approach ensures that buybacks remain sustainable and responsive to ecosystem activity.
Momentum Reserve's Role in Buybacks
The Flareporium Momentum Reserve is pivotal in sustaining the buyback mechanism. It is funded through ecosystem revenues and distributes 50% of its allocation towards $FOTON buybacks. The remaining reserve is divided as follows:
20% to the Oracle Growth Vault for ecosystem acceleration and development.
30% to the Yield Vault for staking rewards.
Further Reading
Find More On $FOTON
Discover $FOTON Token
Learn About $FOTON Distribution Rate
Block Sapiens $FOTON Airdrop Details
Initial $FOTON Sale Information
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