Introducing the FOLO Token Value Capture Mechanism (Part 2)

Alpha Impact

Published in

Alpha Impact

4 min readSep 20, 2021

Find the Best Traders & YOLO into FOLO!

Hello, Alphas!

We are back for our second episode of the Alpha Impact token economy.

In our previous article, we provided an overview of the trading network and how the fees will be partitioned among ecosystem participants.

If you missed our introductory post on the FOLO token value capture mechanism, check it out here.

Today’s post focuses on Copy Traders, so buckle up, and let’s dive into it!

Copy Trading Fueled by FOLO

As Hayden often mentions in his AMAs, the copy trade feature on the Alpha Impact platform will require FOLO tokens.

To be more precise, users will have to stake FOLO to access copy trading services. After staking a certain amount of tokens, users will be able to copy trade top traders.

Both the amount of FOLO tokens staked and the copy trade volume of those accounts will be used to determine fees. Those fees are deducted directly from each account’s staked $FOLO tokens on a periodic basis.

Let’s go through a simple example. Alice is a new user of Alpha Impact. She wishes to copy trade Bill, a trader with an excellent track record and a large social following.

First, she stakes some FOLO to start copy trading Bill. According to their amount of FOLO stake and copy trade volume, a fee will be deducted from Alice’s staked FOLO, diminishing her stake according to the volume she trades.

As a Pro Trader, Bill earns FOLO tokens for those who copy him!

FOLO Staking Rewards Program

But what happens to FOLO tokens when they are earned by top traders? That’s where our staking rewards program comes into play!

If a Pro Trader would like to level up and earn more on the volume on his copy trades, he doesn’t necessarily have to buy them.

He can stake his earned FOLO to earn more FOLO. The more he stakes, the more he earns!

Once a user has earned enough FOLO, they can send their tokens to their fee wallet to enjoy larger rebates as a copy trader and/or higher rewards rates as a pro trader.

The objectives of our staking rewards program are:

Using FOLO issuance to incentivize token holders to lock their FOLO tokens and engage further on the platform.
Provide rewards to users so they can earn more using the platform with their earned FOLO tokens.

Using these two simple methods, copy traders can earn, via continued platform engagement, the needed FOLO tokens to copy-trade top traders.

As we develop the Alpha Impact token value capture mechanisms to create a virtuous cycle of continued platform engagement, we will continually analyze how the community uses the platform and the FOLO token. Our model will evolve according to user feedback and the changing nature of user interaction.

We hope you enjoyed this quick read, and we’re super excited to implement our token economy in earnest once our platform launches later this year. We invite all our community members to explore and join in the conversation!

Stay tuned for more, and remember:

Don’t just trade, YOLO into FOLO

About Alpha Impact

Crypto Made Easy.

Alpha Impact is a social trading platform designed to bring trust to crypto trading. Whether you want to automatically copy an expert trader or you’re already a crypto trader and want to build and monetize your following, we’re building the infrastructure to take the guesswork out of crypto trading.

Traders on the Alpha Impact platform are some of the top-performing traders in crypto. In good markets or bad, our traders are incentivized to share their trades and trading strategies through the Alpha Impact platform. Finally, a place where users can filter through the noise and learn about crypto trading from experts with a visible track record. What’s even better is that traders have an incentive to share their investment thesis, analysis of the market, and the reasons behind their trades.

We share our fees with traders, meaning that there is finally an incentive for expert traders to share their activity and views with crypto enthusiasts and beginners.

Built by experts from the traditional finance space, our philosophy is to empower everyone to become a crypto trader. Whether you’re a beginner wanting to learn from an expert, or an expert wanting to get paid, we’re here to democratize access to this industry, one trade at a time.