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Whitepaper

Launch Tokenomics

How supply, fees, curves, buybacks, and distribution combine into a complete economic system.

Launch Tokenomics

Tokenomics in FOREST is built around one principle: every token should be able to express its own economic behaviour.

Instead of forcing tokens into a fixed template, FOREST allows creators to configure supply, fees, curves, buybacks, and distribution logic in a modular way. This section explains how each component works and how they interact to form a complete economic system.

1. Supply Model

FOREST does not enforce a fixed maximum supply.

Tokens use an elastic supply model shaped by user actions:

  • Tokens mint when users buy
  • Tokens burn or return to the pool when users sell
  • Staking, rewards, and airdrops draw from the defined allocation pools

Circulating Supply updates in real time based on:

  • tokens bought
  • tokens sold
  • tokens staked
  • tokens burned
  • tokens claimed from airdrops

[ Creator Configuration ] → [ Allocation Pools ] → [ Live Supply Behaviour ]

This gives creators flexibility while ensuring users can always track supply transparently.

2. Allocation Splits

Creators define how the token's initial distribution is split across four main pools:

PoolPurpose
LiquidityTokens paired with $FOREST to open trading and price discovery
ReserveProject-owned supply for future use (team, marketing, ecosystem growth)
StakingTokens rewarded to participants staking into the ecosystem

These percentages always equal 100%.

Example:

  • Liquidity: 40%
  • Reserve: 30%
  • Staking: 20%

How Splits Work in Practice

  • Liquidity is locked into the pool at publish.
  • Reserve tokens remain in the project's control.
  • Staking rewards release over time based on staking behaviour.

3. Fees

Fees create the economic engine that powers each token.

Creators configure:

  • Buy Fee: 0–100%
  • Sell Fee: 0–100%

Fees can be routed to:

  • creator treasury
  • protocol
  • buybacks
  • other configured destinations (depending on template)

Example Fee Routing

Buy Fee (5%)

  • 2% → Creator Treasury
  • 2% → Protocol
  • 1% → Buybacks

Sell Fee (7%)

  • 3% → Protocol
  • 4% → Buybacks

Fees influence:

  • sustainability
  • token liquidity
  • long-term incentives
  • market behaviour

High buy fees can discourage rapid entry. High sell fees can discourage dumping. Balanced fees stabilise the ecosystem.

4. Buybacks

Buybacks convert a % of collected fees or app revenue into automatic purchases of the token.

Buyback % can be configured from 0–100%.

Buybacks can operate in two modes:

A. Buy and Hold

Purchased tokens move into a designated treasury or module.

B. Buy and Burn

Purchased tokens are permanently removed from supply. Burning reduces circulating supply and increases scarcity.

5. Full Token Lifecycle Diagram

This section outlines the complete lifecycle of a token created through FOREST, from initial configuration to long-term ecosystem mechanics.

Lifecycle Overview

The token moves through a series of defined states. Each state activates new mechanics while preserving the logic set by the creator.

  • Creator Config — The creator defines all foundational mechanics.
  • Bonding Curve Launch — Early trading builds liquidity and price discovery.
  • Graduation Threshold Hit — A milestone that triggers progression into full liquidity.
  • AMM Liquidity Mode — Advanced token features activate and market dynamics expand.
  • Long-term Ecosystem Mechanics — The token reaches its mature phase and operates as part of a broader ecosystem.

1. Creator Config

This is the starting point. All parameters, mechanics, curves, fees, and logic are defined here.

2. Bonding Curve Launch

The token begins trading on its bonding curve. Liquidity expands automatically as trading occurs.

3. Graduation Threshold Hit

Once the graduation threshold is reached, the system transitions from bonding curve mode into open liquidity.

4. AMM Liquidity Mode

The token now trades in AMM liquidity. Active systems begin operating:

  • fees
  • buybacks
  • staking
  • airdrops

5. Long-term Ecosystem Mechanics

Sustained behaviour, rewards, supply logic, and ongoing token utilities evolve here.

The lifecycle ensures that a FOREST token evolves from a creator-defined concept into a fully autonomous economy with ongoing mechanics.