3.3 Introduction of the Tokenomics

FireDAO implements a "3+2+7+1+X" tokenomics model. In the early stages, there will be more than 10 different types of tokens to sustain and expand the entire on-chain economy. Later on, we will establish community behavior badges tailored to different ecosystems. FireDAO aims to become a self-sustaining, continuously circulating, and ever-growing on-chain super economy that embodies the true spirit of encryption. It will also serve as the native on-chain DID identity protocol for the entire Web3 world.

The "3" refers to three ecosystem tokens within FireDAO: FireDAO Governance Token (FDT), FireDAO Incentive Token (FLM), and FireDAO Identity Token (FireSeed).

FDT is the governance token of the FireDAO ecosystem and is the most essential token within the entire ecosystem. FDT holders have governance rights over the entire ecosystem, which revolves around FDT.

FLM is the incentive token within the FireDAO ecosystem, distributed as incentives to various participants in the ecosystem. Within the FireDAO ecosystem, FLM can be exchanged for governance tokens, FDT at a value of 0.01 USD, with the exchanged FDT released linearly at the rate of one per block until fully released within a two-year timeframe.

FireSeed is the identity token within the FireDAO ecosystem, used for the minting of Soulbound accounts, FireSoul and referral rewards. To join “FireDAO”, one must burn one FireSeed to generate a Soulbound account, FireSoul and become an official member of “FireDAO”. FireSeed is also used to establish referral relationships. When a wallet transfers one FireSeed to another wallet that has never received a FireSeed, the transferring wallet becomes the referrer of the receiving wallet, thus establishing the referral relationship within the FireDAO ecosystem. FireSeed can be obtained through two methods: airdrops from the FireDAO official community or self-collection from the "Holy Fire Altar". Initially, a donation of 0.08 ETH is required to mint each FireSeed.

The "2" refers to two ecosystem Web3 IDs: the PID generated through minting "FirePassport" and the FID generated through minting FireSoul. These two IDs represent the Web3 identities of FireDAO community members. Holding a PID qualifies one as a preparatory Rainbow Warrior of FireDAO, Rainbow Recruit, while holding an FID qualifies one as an official Rainbow Warrior of FireDAO. Minting PID and FID and becoming a Rainbow Warrior is the basic requirement for community members to fully participate in the construction of the FireDAO ecosystem.

The "7" refers to seven Soulbound tokens (SBTs): SBT-001, SBT-002, SBT-003, SBT-004, SBT-005, SBT-006, and SBT-007. Each SBT records different community behaviors and data statistics of each official DAO member. These seven SBTs are ERC20 tokens, with the issuance and destruction of tokens automatically governed by on-chain smart contracts based on the community behavior of each official DAO member.

The “1” refers to a type of FireDAO reputation token, which is FRT, the reputation token in the ecosystem. FRT is automatically minted and burned based on the quantity and weight of 7 SBTs in users' Soul Accounts, representing the voting power of community members.

The "X" refers to X types of community behavior badges, which are badges issued by FireDAO for different ecosystems. These badges will be minted as NFTs and represent another form of SBT. For example, FireDAO can issue the FireDAO Uniswap Community Behavior Badge for users who extensively utilize Uniswap. Any user who has conducted more than 10 transactions on Uniswap can mint this badge for free. These community behavior badges are also non-transferable and Soulbound. In the future, the FireDAO community will initiate "soul airdrops" specifically for users who possess community behavior badges, making the airdrop process more precise.