FORMATION

Formation Fi revolutionizes portfolio construction by introducing risk-adjusted portfolio of decentralized open financial crypto assets in the form of algorithmically rebasing indexes, with a high degree of composability, across the major blockchain networks.

This article covers the utility and economics of the $FORM token

SUMMARY:

$FORM entitles its holders a right to vote and a portion of future net income generated by the protocol for staking;

$FORM holders will have exclusive access to the secret Dark Pools, only accessible to the members of the Formation Fi ecosystem; and

The economics of the $FORM token have been formulated to reward the long-term interests of key stakeholders and demotivate short-term speculative behaviors in the ecosystem.

THE ANATOMY OF A TRIPLE UTILITY

$FORM is a governance token with reward. Simply put, it provides a right to vote and future income to its holders who stake their assets. While such functionality is nothing new in DeFi, we’d like to bring your attention to the specific combination of three utilities which make $FORM unique.

GOVERNANCE: $FORM token holders will be able to vote on many issues related to the critical functioning of the ecosystem, such as approving budgets, new partnership proposals, and changing certain parameters of monetary policy. Because Formation FI executes on the idea of Progressive Decentralization, which we will explain later in another Medium post, the DAO governance structure will be deployed over time on a step-by-step basis.

REWARD: $FORM token holders will receive rewards in $FORM when they provide liquidity to the ALPHA, BETA, GAMMA, and PARITY indices. A full 50% of the revenue collected through the protocol will be distributed proportionally to $FORM token holders who provide the liquidity. The other 50% will go to the Operational Treasury until the weekly maximum is reached, after which all excess profit will be burned as a deflationary measure. (Token holder profit will never be burned.)

SPECIAL MEMBERSHIP TO DARK POOLS: $FORM will offer its holders special member-only access to secret liquidity generation pools which harness the wisdom of the crowd to incubate and fund the most promising new DeFi projects