Tokenomics

Economic model and token distribution

Overview

FanCup operates on Solana and uses Creator Keys (tokenized creator identities) that function through bonding curve mechanics. Each creator has their own independent token economy.

1. Creator Keys Economics

Bonding Curve Model

Creator Keys use a continuous bonding curve formula:

  • Price = Base Price × (1 + Supply)^Curve Factor
  • As more keys are purchased, the price increases
  • As keys are sold, the price decreases
  • Provides continuous liquidity without traditional order books

Revenue Distribution

When Creator Keys are traded, revenue is distributed as follows:

  • 70% → Creator (earned directly)
  • 20% → Platform (for operations and development)
  • 10% → Distributed to all key holders (proportional to holdings)

2. Platform Token (Future)

FanCup may introduce a platform token in the future with the following proposed distribution:

  • 40% → Community & Rewards
  • 20% → Team & Advisors (4-year vesting)
  • 15% → Investors (2-year vesting)
  • 15% → Treasury & Operations
  • 10% → Ecosystem Development

Note: Platform token launch is subject to regulatory approval and community governance.

3. NFT Badge Economics

  • Badges are minted as NFTs on Solana
  • Initial minting fees: 0.01 - 0.1 SOL depending on rarity
  • Secondary sales: 5% royalty to platform, 5% to creator (if applicable)
  • Some badges include SOL rewards when claimed

4. Fee Structure

Creator Key Trading

  • Buy Fee: 2% of purchase amount
  • Sell Fee: 2% of sale amount
  • Fees are automatically distributed according to revenue split

NFT Badge Minting

  • Common badges: 0.01 SOL
  • Rare badges: 0.02 SOL
  • Epic badges: 0.05 SOL
  • Legendary badges: 0.1 SOL

Platform Operations

  • Wallet connections: Free
  • Profile customization: Free
  • Premium features: Subscription-based (future)

5. Deflationary Mechanisms

  • Key Burns: Creators can burn their own keys to reduce supply
  • Badge Burns: Some badges can be burned for rewards
  • Revenue Share Burns: Option to burn earned revenue for deflation

6. Incentive Structures

Creator Incentives

  • 70% of all trading revenue
  • Exclusive content monetization
  • Governance rights over their economy
  • Early adopter bonuses

Fan Incentives

  • 10% revenue share on all trades
  • Exclusive content access
  • Governance voting rights
  • Badge rewards and achievements
  • Referral bonuses (5% lifetime commission)

7. Liquidity & Market Making

  • Bonding curves provide continuous liquidity
  • No need for traditional market makers
  • Always-on trading (no market hours)
  • Slippage is predictable and transparent

8. Value Accrual

Value accrues to Creator Keys through:

  • Growing creator influence and audience
  • Increased trading volume
  • Exclusive content and utility
  • Governance rights and decisions
  • Revenue distribution to holders

9. Risk Factors

  • Creator Key prices are volatile
  • No guaranteed returns or liquidity
  • Smart contract risks
  • Market and regulatory risks
  • Platform development risks

Always do your own research (DYOR) before participating.

10. Future Considerations

  • Cross-chain expansion
  • Lending and borrowing against keys
  • Derivatives and options markets
  • Staking mechanisms
  • DAO treasury management

11. Transparency

All tokenomics data is:

  • On-chain and publicly verifiable
  • Updated in real-time
  • Available through our API
  • Audited regularly

12. Contact

For questions about tokenomics:

tokenomics@fancup.pro