Protocol and Economy
Protocol and Economy
Launch Tokenomics
How supply, fees, curves, buybacks, and distribution combine into a complete economic system.
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
Every token launches with a fixed total supply of 1,000,000,000.
The full supply is minted at launch and split across the allocation pools — no tokens are minted afterwards:
- Buys and sells move tokens between the bonding-curve pool and holders
- Burns permanently remove tokens from circulation
- 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:
| Pool | Purpose |
|---|---|
| Liquidity | Tokens paired with $FOREST to open trading and price discovery |
| Reserve | Project-owned supply for future use (team, marketing, ecosystem growth) |
| Staking | Tokens rewarded to participants staking into the ecosystem |
| Reward Pool | Tokens funding in-game rewards for the token's playable experience |
These percentages always equal 100%.
Example:
- Liquidity: 40%
- Reserve: 25%
- Staking: 20%
- Reward Pool: 15%
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: 0–93.9%
- Sell Fee: 0–93.9%
(The cap reserves the fixed 5% protocol fee and 0.1% IP fee within the 99% ceiling.)
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.
The lifecycle ensures that a FOREST token evolves from a creator-defined concept into a fully autonomous economy with ongoing mechanics.