Why did we launch FDAO?

Decentralization has always been ForTube’s direction and goal, so we would like to introduce a decentralized governance structure — FDAO with no boundaries, no identities, and no core interest groups after two years of safe operations and technical iterations. It can balance ForTube’s revenue distribution, risk-taking, and governance decisions while keeping the development concept of security, ease of use, and scalability.

Why did we choose Ethereum? When are we going to launch FDAO on BSC and other chains?

Among the various chains in the current DeFi industry, Ethereum has a large number of users, a relatively complete ecosystem construction, strong consensus on decentralization. FDAO is a decentralized governance structure, so we decided to deploy on Ethereum first after comprehensive consideration.

We will deploy to other chains based on the actual operational situation.

What specific functions does the FDAO token have?

  • Exchange with FOR tokens
  • Free trading among addresses
  • Participate in ForTube Governance Voting
  • Enjoy the privileges of ForTube campaigns in the future (such as NFTs, airdrops, etc.)

What are the benefits of holding FDAO tokens? What is the difference between $GFOR and $FDAO?

Benefits of holding FDAO tokens:

The platform will buy back FOR and deposit them in the governance pool so that FDAO holders can obtain proportional profits when exchanging FOR.

For example, if users buy FDAO with the value of 1FDAO=60FOR, and then exchange FDAO back to FOR with the rate of 1FDAO=80FOR, they can get 20FOR as profit.

The biggest difference between FDAO and GFOR is that FDAO does not have a fixed APY and lock-up period. FDAO’s revenue is determined by the number of FORs in the governance pool and the slope of the bonding curve so the APY is keeping changing.

FDAO carries ForTube’s governance authority.

Is there a cap on the total amount of FDAO?

Yes, but it’s not a fixed number.

The total amount of FDAO is determined by the total amount of FOR in the FDAO pool. In extreme cases, all FOR in the market is converted into FDAO and deposited in the governance pool. In this case, the number of FDAO reaches the upper limit.

In practice, reaching the upper limit is a dynamic process. It is determined by the number of FORs in the governance pool and the slope of the bonding curve, which can be calculated by the formula of the bonding curve.

What is the time and frequency of buybacks?

The smart contract automatically calculates the platform income of the previous month, takes out 60% of the total to buyback FOR, and deposits them into the governance pool at the beginning of every month with no end date.

How to calculate the benefits of holding FDAO?

Users can calculate the number of FOR they can exchange to further calculate the profits using the bonding curve formula according to the number of FDAOs they hold.

Example: A user exchanges 100FDAO using 7000FOR with the rate of 1FDAO=70FOR. Two months later, the rate in the bonding curve changed to 1FDAO=90FOR. At this time, 100FDAO can be exchanged for 9000FOR, then the user’s profits from holding FDAO for two months is 9000FOR — 7000FOR = 2000FOR.

Will it cause loss if users exchange FDAO with the rate of 1FDAO=100FOR and then exchange back to FOR with a rate of 1FDAO=80FOR?

There is a risk of loss if users decide to exchange back to FOR with a lower rate.

However, the value of FDAO is determined by the number of FOR in the governance pool and the slope of the bonding curve, which is a dynamic process. The value of FDAO will increase when other users exchange FDAO and the team buyback FOR and deposit into the governance pool every month.

What are the components of FDAO? How does it work?

FDAO is divided into FDAO exchange and governance voting.

First of all, the operation of the FDAO exchange is based on the predetermined bonding curve, and the price of the FDAO will change according to the position and slope of the bonding curve.

There are two situations that cause the quantity of FOR to change while the price of FDAO remains constant:

  • when the ForTube team buybacks FOR and deposit them into the governance pool, this operation is not an exchange so there will not be new FDAO generated. The number of FOR increases and the number of FDAO remains constant. In this case, the rate will increase and 1FDAO can be exchanged for more FOR.
  • Under the framework of governance regulations, if there is a bad debt or hacker attack in the system, FDAO token holders can vote to determine whether to withdraw the FOR in the governance pool to deal with the problem. If FOR tokens need to be withdrawn, the existing FDAO will not be burnt, then the amount of FOR will reduce but the amount of FDAO will remain constant, thus, the rate will decrease which means 1FDAO will be exchanged for less FOR.

The primary function of the FDAO is to entitle holders privilege of participating in the governance voting. This feature is under development and will be launched soon. Please stay tuned.

FDAO token holders can participate in governance voting to help make decisions for ForTube operations such as token listing and delisting, loan interest rate parameters, etc., and the weight of users’ votes is determined by the proportion of FDAO they hold in the governance pool.

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ForTube is the world’s top DeFi lending platform launched by The Force Protocol.

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