📚Tokenomics
What is FOLO?
FOLO is Alpha Impact's deflationary utility token that provides benefits to our platform's users.
FOLO token smart contract addresses:
Ethereum network - FOLO: 0xB2a63A5Dd36C91eC2DA59B188ff047F66fac122a
Polygon network - FOLO (PoS): 0xeF205F99bD869e74b16050199d54327a0eCd343D
Token Utility
FOLO token has clear utility within the system that meets the needs of everyone.
| Traders | Subscribers | All |
|---|---|---|
Monetized Traders may earn FOLO tokens when user subscribes to them to view their real-time portfolio analytics. | Upon subscribing to traders by , subscribers will be able to unlock deeper insights of the traders' portfolios and receive real-time trade signals. | FOLO tokens can be used to boost one's post on Alpha Impact's social feed, extending & expanding its reach to the rest of the community for a longer period of time. |
By leveraging on Multiplier Mechanism such as in-app staking of FOLO tokens, Traders can get a discount on platform fees which will increase their Revenue Share Ratio (RSR) and thus receive higher revenue from monetization. | Generate passive income from trading profits by auto-copying Traders, which is a feature unlocked for users who are subscribed to Traders. | Users have the opportunity to strengthen their community standing by acquiring the Verified Trader Partnership through the use of FOLO tokens. |
Users may use FOLO to tip Traders who share insightful trading strategies/content on the platform, thus incentivizing quality content creation and foster a supportive community. |
Token Supply
FOLO had an initial fixed maximum supply of 424,128,123 and a current total supply of 417,000,000 after the most recent burn event.
Token Burn Mechanism
FOLO token employs a deflationary model, ensuring its scarcity and value appreciation over time. With regular burns of 1 million FOLO per month being done via a smart contract burn function, a portion of the circulating supply is systematically removed from circulation, reducing overall token supply. This process helps maintain a healthy balance between supply and demand, enhancing the token's value.
Whenever a burn is completed, an official announcement is made on Alpha Impact that specifies the amount of FOLO tokens that were burned, together with a link to the transaction on Etherscan.
Burn Transaction History:
| Date | TX hash | FOLO Burned | Total FOLO Supply |
|---|---|---|---|
424,128,123 | |||
04/12/2023 | 4,128,123 | 420,000,000 | |
04/03/2024 | 3,000,000 | 417,000,000 | |
04/06/2024 | Next Burn | 3,000,000 | 414,000,000 |
Token Value Capture Model (TVC)
In the above diagram, we have 3 Users (User X,Y and Z) who choose Bulk Subscription and 1 User (User W) who chooses Individual Subscription. We will be studying Alpha Impact's Token Value Capture model that encompasses its Subscription & Revenue Sharing models via this example. This diagram utilizes some abbreviations such as RSP (Revenue Share Pool) and RSR (Revenue Share Ratio) .
RSR (Revenue Share Ratio) refers to the combination of multiplier factors applied to the Trader's proportion of the RSP, determining the Trader's actual earnings. The value of RSR is determined based on Alpha Impact's Multiplier Mechanism.
RSP (Revenue Share Pool) refers to the total sum of subscription fee payments made for all of the bulk subscriptions.
Bulk Subscription:
User X chooses Basic Bulk Subscription plan (9.99 USD worth of FOLO/month) which entitles them to 3 Traders to subscribe to. User X decides to subscribe to Traders A , B and C.
User Y chooses Standard Bulk Subscription plan (19.99 USD worth of FOLO/month) which entitles them to 5 Traders to subscribe to. User Y decides to subscribe to Traders A , B , C , D and E.
User Z chooses Premium Bulk Subscription plan (49.99 USD worth of FOLO/month) which entitles them to 12 Traders. User Z subscribes to 12 Traders (Traders F ~ Q).
Payments made for Bulk Subscriptions are gathered together in RSP, which now amounts to approximately 80 USD worth of FOLO. The amount in RSP is to be distributed among Traders who have been subscribed via Bulk Subscription i.e. All Traders (Traders A ~ Q).
Read our Subscription Model to learn about Bulk Subscription more in detail.
Individual Subscription :
User W subscribes to Trader Q only via Individual Subscription and Trader Q has set their subscription fee at 1.00 USD worth of FOLO/month).
User W's subscription payment to Trader Q does not get pulled into RSP as it is not a Bulk Subscription. It is distributed between Trader Q & Alpha Impact based on Trader Q's RSR.
Revenue Share Calculation:
In total, there're 20 Bulk Subscriptions contributing to RSP and 1 Individual Subscription to Trader Q.
Trader A is bulk-subscribed by 2 Users (Users X and Y):
2/20 * 80 USD * Trader A's RSRTrader B is bulk-subscribed by 2 Users (Users X and Y): 2
/20 * 80 USD * Trader B's RSRTrader C is bulk-subscribed by 2 Users (Users X and Y):
2/20 * 80 USD * Trader C's RSRTraders D to Q (14 Traders) are each bulk-subscribed by 1 User (either User Y or User Z)
Each Trader (Traders D to P) receives:
1/20 * 80 USD * Each Trader's respective RSRAs Trader Q is both bulk-subscribed & individually subscribed, Trader Q's revenue share will come from both subscription options. Trader Q receives:
1/20 * 80 USD * Trader Q's RSR + 1 USD * Trader Q's RSR
This revenue share model ensures transparency in fair distribution among bulk-subscribed traders while accounting for each Trader's RSR which reflects various aspects of their performance on Alpha Impact.
Alpha Impact's Revenue
All the platform fees collected from both Bulk & Individual Subscription will be collected and utilized by Alpha Impact to support:
Treasury Management
Insurance Fund
Default Platform Fee
The default platform fee on Alpha Impact is set at 50% when Trader's subscription fee is set to be denominated in USDT (Tether), and 30% when denominated in FOLO.
This platform fee, however, can be reduced via Multiplier Mechanism, which will provide Traders with opportunities to enhance their RSR.
Multiplier Mechanism
Alpha Impact plans to implement a Multiplier Mechanism that enhances Traders' Revenue Share Ratio (RSR) by reducing the Default Platform Fee through incorporating various multiplier factors, ultimately helping them to retain a larger portion of their subscription revenue.
These multiplier factors are aimed at incentivizing Traders who:
Exhibit Strong Trading Behavior
Enhance Token Utility
Actively foster community engagement
| Category | Multiplier Factors & Points |
|---|---|
Exhibition of Strong Trading Behavior |
|
Enhancement of Token Utility |
|
Active Fostering of Community Engagement |
|
Please be advised that the provided list of multiplier factors is not exhaustive, and Alpha Impact retains the discretion to modify or update the list at any time without prior notice.
Following from the example used in TVC model, Trader A meets following multiplier factors:
Ranked as Top 3 Trader under Binance Spot Performance category: 2%
High Trade Volume (Without Copier): 1%
Opted in to receive Monetization Earnings from RSP in FOLO: 5%
High number of Daily Logins on Alpha Impact App: 1%
Trader A's RSR is 2 + 1 + 5 + 1 = 9 %
Trader A's subscription payment asset is FOLO, hence default platform fee is 70%.
Hence, the revenue that Trader A will receive 2/20 * 80 USD * (70+ 9)%
In this way, the Multiplier Mechanism incentivizes traders to actively participate, contribute positively, and ultimately benefit from their involvement in the Alpha Impact ecosystem by earning a larger share of their revenue generated.
Token Distribution
We have decided that the following allocation is what best represents our principles and creates a healthy setup for all token allocation categories.
Token Release Schedule
Alpha Impact implements vesting practices to ensure responsible token distribution and prevent sudden dumping of the token. This means that allocated FOLO tokens are subject to a gradual release schedule, as depicted in the chart below, based on the individual token allocation type.
| Allocation Category | Allocation Percentage | Details |
|---|---|---|
Liquidity Providers, Staking Rewards, or Burned | 30% | 1 week cliff, distributed weekly or burned over 4 years |
AMM In Treasury | 15% | 2,700,000 tokens unlocked for initial liquidity provisioning and market making. For the remainder, 1 month cliff with 1/6 unlocking each month until month 6 |
Private Sale | 14.03% | 1 month cliff, 1/6 vesting each month for until month 6 |
Partnerships/Listing | 9% | 1 month cliff, 1/3 unlocking on month 1. Remainder has a linear monthly unlock until month 6 |
Community, Referral, Trader/Dev Grants | 9% | 1 month cliff, 1/48th vesting each month thereafter from months 2-49 |
Core team | 8% | 3 month cliff, 1/48th vesting each month thereafter from months 3-51 |
Technology & ops | 8% | 3 month cliff, 1/48th vesting each month thereafter from months 3-51 |
General Partners & Advisors | 6% | 3 month cliff, 1/48th vesting each month thereafter from months 3-51 |
Public Sale with IDO | 0.97% | Fully unlocked on TGE (Token Generation Event) |
Smart Contract Audits
To ensure reliability and security of our FOLO.sol smart contract, we have undergone an in-depth evaluation in order to identify any security issues/errors within the smart contract.
Our most recent smart contract audit records can be found below.
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