Supply Dynamics

Too many blockchain projects fail to take into account the basic laws of economics when building their tokenomics. Other projects simply β€œmint” additional supply without consideration of second or third order consequences. While most blockchain companies create vesting schedules which benefit mostly themselves, the FORE team have carefully crafted token release schedules to best support healthy growth, long-term incentives for key stakeholders, and scarcity overtime. Combined with a carefully designed product and a deflationary tokenomics model, we can limit the impact of new token releases.

Rather than creating our tokenomics and vesting schedule arbitrarily, we undertook a six month long research initiative to develop FORE’s tokenomics. We began by researching historical launches of tokens, as well as existing historical return distributions of crypto assets. Based on these return distributions, we simulated thousands of potential paths based on a random-walk statistical model, utilizing historical returns of these assets to determine the mean, standard deviation, kurtosis and skew of our assumptions. We utilized monte-carlo simulations to model outcomes using all possible permutations and combinations to optimize tokenomics (supply/demand dynamics) and model out potential future scenarios:

  • 500,000 simulations (variables / inputs

  • Price simulations based on real distributions of asset movement

  • Stress tested with all permutations and combinations within +/- 30% range

  • Projections based on simulated inputs, protocol revenue, and tokenomics model

In line with our research, FORE’s TGE (Token Generation Event) Model was designed to make it harder to centralize token ownership. This preserves the ability for meaningful token market dynamics as FORE is designed to reward and incentivize activity, rather than token aggregation. FORE will use a block-by-block RELEASE Linear Distribution model.

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