We’ve had a few drafts of our white paper- and, as the bear market drags on, I thought it would be a good idea to release a new version of it, including our new tax structure, and some other updates.
$FART started out as a joke, and as an experiment- and it continues to be one. We’re working with cutting edge code to bring something new to the table, to show the crypto world that “moon bags” can be sustainable with code that is written in a way to benefit all holders.
Our contract allows holders to access liquidity without selling their tokens, and stores a treasury within the contract in order to cut human greed and corruption out of the equation.
It has always been the goal for $FART to provide a utility that encourages users to learn more about crypto ecosystems in a fun, non-intimidating way. We’ve released the Booty Bouncers in Space game which is available on both iOS and Droid, which helps teach users how to mint an NFT, connect their wallet to an app, and win prizes for high scores. Pretty cool, huh?
But the most interesting thing about our token is the code, and tokenomics model.
There are 8 trillion $FART in supply, and 51% have already been burnt.
Because of liquidity issues, a large portion of the supply remains in a cold storage wallet- I’ll get to that in a moment. Let’s talk about the innovative structure of the Rising Floor Token.
The Floor Pool is intended to be a safety net treasury for holders. The Floor Pool is entirely dependent on trading volume, and grows as volume increases, much like the liquidity pool; however, the floor pool cannot be dipped into via trades; it can only be accessed if tokens are burned. Buyers can send their tokens to the burn wallet at any time and redeem for the value in BNB provided by the floor pool. If the liquidity pool is drained, the floor pool still remains.
The floor price of the token is calculated by dividing the total floor pool value by the number of tokens in circulation. The floor pool price is still speculative according to the price of BNB, but not in the same way that the trading price is.
For example, for the sake of simplicity, let’s say there are 10 tokens. If there are 5 BNB in the floor pool, that amount would be equally distributed amongst each of the 10 tokens, making the floor price .5 BNB.
So, because the floor pool is divided equally between the number of tokens in circulation, the floor price per token can never go down; as tokens are traded, and the tax adds BNB to the pool, it can only rise; hence, the name Rising Floor token.
The liquidity pool provides liquidity for when a holder sells their tokens how ever, if the liquidity pool is larger than the floor pool, the variable tax will be calculated based on the gap ratio between the two, as demonstrated below. This relates to the treasury mentioned above; by selling when the floor and liquid price have a large gap, the variable tax contributes to protecting other holders from having an illiquid token.
Illustrated below is how the taxes work for buying and selling.
And on this image, you can see how the variable tax is calculated.
So, let’s go over the many benefits of having a tax structure like this.
This model creates a mechanism that allows for friendly arbitrage; if the trading price ever goes below the floor price, someone can buy the token, and burn it for more than they paid for it. In doing so, they are increasing the trading price; hence, when the floor and trading price are the same, it is an opportune time to both buy, and provide liquidity.
Here’s a graph showing how the floor and trading prices operate together. The red line shows the trading price, with lots of ups and downs, as tokens tend to trade. The blue line shows the steady growth of the floor price- and when the two prices come together, that is the ideal purchase point to minimize loss.
This model also allows buyers a certain amount of confidence when purchasing the token. When the trading price is closest to the floor price, they can purchase the token knowing that, at minimum, they can always get back the initial amount of BNB that they put in, via the floor pool. Even if the liquidity pool gets drained, they can still burn the token and receive their BNB back.
The bottom line- we can trust code to accomplish things that humans cannot, normally due to bending to the will of greed or fear. With the rising floor code, the contract can store the treasury so that it is accessible to all holders, without being corrupted by any individual holder. I think that’s pretty revolutionary.
Eventually, if all goes as planned, the goal is to burn a portion of the $FART that is sitting in that cold storage wallet, and provide liquidity for another large portion via the floor price.
In terms of roadmap- yeah, we’ll do things. Right now, regulation is coming, so we’re just waiting to hear how we can legally operate in the future without burning ourselves right now.
Right now, this is a grassroots crypto project that came to light without VCs, and I hope we’re able to keep in that way in order to maintain fairness in the Fart economy.
I published this article to keep current Farters in the loop with what’s going on with the contract. Another version of this paper will be published eventually. Until then- may the fart be with you.