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The core players of Bonfida, including the seed investors, are locked for the long term. We only wanted contributions from those who believe in us for the long run.
95.4% of all FIDA tokens are locked for four years and no tokens began to unlock before 12 months from the FIDA IEO and IDO’s.
$FIDA began unlocking on the 31st of December, 2021
Of the remaining 4.6%, 2% were sold to liquidity providers to maintain adequate liquidity across all exchanges. These tokens will only be used in a market-making capacity to meet the demand of buyers.
The next 0.6% will be used for FIDA’s IEO’s and IDO’s to provide an opportunity for the community to purchase the tokens they desire. The remaining unlocked tokens are used for rewards and incentives.
FIDA is put in a very unique position for a token; for the entire first 12 months, there were no seed sales unlocked, making that 95.4% of all tokens locked, and only a few percentages of tokens actually circulating. Thus there are no large holders to act as net sellers of any kind.
- 1.Fee Incentives: FIDA token holders receive preferential treatment on Bonfida's platform. They are entitled to reduced fee tiers when trading domain names. These tiers undergo regular adjustments, ensuring FIDA holders consistently benefit from market dynamics.
- 2.Discounts: FIDA holders are privileged with a 5% discount on domain name registrations.
- 3.Token Burn: All FIDA acquired by the protocol undergoes burning, with stablecoins used to buy and subsequently burn FIDA in on-chain markets.
- 4.Governance: This is in progress as we are blocked by the lack of quadratic voting on Solana at the moment, we are working with Solana to make a grant to help fund this public good. Once this is live it will replace the governance we had with gFIDA in (hopefully) a more efficient and dynamic way. The deprecation of staking is actually related to this btw