Understanding $FOT and what $FOT offers
FOT has two main purposes; burn and store of value. Every time FOT is burned, some amount of bFOT is obtained to use in the sub-systems. The amount of obtained bFOT during this burning varies according to the initial FOT amount (See, FOT Whitepaper). The value of FOT as a store of value mainly derives from the operation of sub-systems with bFOT and the quantitative incentivization of users to burn their FOTs as this is the only way to obtain bFOTs. Sub-systems have positive feedback loops between themselves and between them and the users. The main factor creating the positive feedback loop is the notional value shift resulting from the meta-alteration between FOT and bFOT.
Every sub-system has its form of incentivization. Users can obtain FOT by participating in sub-systems, and they can earn more by using bFOT (See, Whitepaper Sub-systems). In other words, Fortis Oeconomia is neither a decentralized exchange nor a lending protocol; it is an innovative financial tool that doesn’t fit with the conventional definitions of De-Fi.
As FOT’s tokenomic structure is different from the conventional systems, one must know the following three particularities to understand its structure.
- OFA-AFO Protocol’s purpose
- OFA-AFO Protocol’s functioning mechanism
- FOT’s meaning within OFA-AFO Protocol.
One For All — All For One is a protocol that allows participants to raise their profits without other participants’ loss and aims to create an ecosystem in which all participants can profit together.
The mechanism of the OFA-AFO Protocol is further explained in the Whitepaper.
FOT is the core of the impetus required for the operation of the OFA-AFO Protocol.
Under these three particularities, we could say that FOT is both the fuel and the operator of the Protocol, as well as a part of it to the extent that the two cannot be thought separately. Those who own FOT are those that own the general system. Therefore, for both the continuity of the system and the obtainment of its decentralization, the distribution of FOT is very important. Every participant is a right holder to the extent of their contribution to the general system. In other words, no participant can own more FOT than their contribution to the system, and all participants are equal. As disturbance of this principle will overthrow the operation of the system, no one, including team members, can ever have complimentary FOT allocation. The maximum amount of FOT that anyone can own before the entry into force of the Protocol is 10.000. (Team members have bought 10.000 FOT with their funds in the private sale.)
From the entry into force of the Protocol, the continuous decrease of the supply for FOT begins. The value of the liquid amount of FOT in the market will be 5% of the maximum instant supply. In other words, when FOT has 100 million total supply, its factual supply will be 5 million. This amount will reduce proportionally to the decrease in the supply.
In order to examine FOT by financial value, we must first understand that FOT is not a conventional financial instrument but more of a financial tool. To give an example, what a financial instrument (e.g., bonds, commodities, etc.) is to a market is what the water is to the sea, and its value derives from the changing waves. Differently, a financial tool (e.g., stock markets, credit cards, paying applications, etc.) is the wind that makes the waves in the sea.
Every financial tool has a relativistic value depending on the area of usage and place of use.
Potential difference deriving from the instantaneous change of the relativistic value of FOT in every sub-system creates a situation that incentivizes the users to use other sub-systems to benefit from the occurring change in the value. Thus, by interlinking all the sub-systems, this usage constitutes the bridge that forms the general system.
To sum up, FOT is an asset that derives its value from its usage, an asset that is not owned by anyone but owned by everyone.