Deflationary mechanisms

Deflationary token mechanisms are used to increase the scarcity of FORC and decrease the total supply over time.

Buyback

5% of the fees collected from each successful fundraise, as well as part* of our treasury funds will be used to buy back FORC tokens. The purchase will be made on DEXs with the highest FORC trading volumes. These buybacks will occur on a quarterly basis (every 3 months) using small, recurring purchases that will not lead to market fluctuations.

*The allocation of treasury funds dedicated towards token buybacks and token burns will fluctuate based on market conditions and come from the Founders’ Fund.

FORC burn

All tokens acquired from the token buybacks will be sent to an inactive wallet address, removing them from circulation. These tokens will no longer be accessible and are, thus, “burned”.

Not exercised Options contracts

Projects may choose not to exercise the Options contracts that they received during the registration of their project or following their token sale.

In this case, 75% of the funds return to the Project Incentive Pool, and 25% is burned. The same happens if the exercise price of an Option is lower than the strike price on the expiry date.

Example 1: A project gets the opportunity to exercise an Option contract that costs $25.000 but does not have sufficient funds to do so.

Example 2: A project is able to exercise the Options contract, but the price of FORC is lower at the time of expiration, and thus the contract is more expensive than the current market value.

In both cases, 25% of the FORC amount is burned and the remaining 75% returns to the Project Incentive Pool for future use.