1. How can Fortis live for 4–6 years while it distributes so many rewards?The answer is simple. While Fortis’ DPR rate is calculated over bFOT, the rewards are distributed as FOT. Following each burning of 1 million FOT, the bFOT rate created via FOT burning increases by 10%. Meaning that when the first 1 million FOT burns, FOTs will start to create 11 bFOTs instead of 10. When this happens, all the rewards will reduce by 10%, but the overall DPR will remain the same. Thereby, while DPR is protected, the life expectancy of Fortis will extend.
2. Why Fortis isn’t a ponzi?
The answer can be found by looking at the value flow of the ponzi systems. The value in ponzi schemes flows from the new participants to earlier participants. However, the risk flows in the opposite direction: from early participants to new participants. Let us now build a hypothetical ponzi system;
There is a coin named “X”. The X coin does not bring stake income in any way. but we would like to create this a ponzi under the name of staking. What we need to do is simple: we create a different coin named sX and we tell people that they will receive a certain amount of sX for every staking (e.g., X= 0.9 sX). In this way, the amount of sX will increase in time. In fact, we could even deepen this tiny staking ponzi of ours by adding vesting to the reward winning period of sX. What is really happening in this hypothetical is nothing but taking X’s of new participants and giving them to the earlier investors.
3. In that case, how does the value flow in Fortis?
FOT is the only meta of value in Fortis. All the other metas are created over FOT; and FOT is created directly by the Fortis system, not by investors. Therefore, the value does not transfer from investor to investor; it transfers from the system to the investors. The value is aggregated on the FOT and distributed to all users through FOT.