Finsteco Tokenomics

These periods are carefully designed according to the specific groups among which we distribute tokens, ensuring a structured and balanced approach. Tokens purchased before listing on the exchange are locked for a set period and cannot be sold or transferred by users during this time.

Cliff and Vesting

Hated but Protects

This mechanism ensures that early buyers, who may have acquired the token at a significant discount, do not immediately sell their tokens upon listing, which could potentially lead to substantial price volatility and destabilize the market. To maintain overall market stability and protect the value of the token, users are required to hold their tokens securely throughout the duration of the cliff period. Once the cliff period ends, the vesting period begins, during which token holders are permitted to gradually sell their tokens in a controlled and systematic manner, thereby reducing the risk of sudden market disruption and ensuring a smooth transition.

For example, if someone purchases 100,000 tokens during the pre-sale at a discount, these tokens will be locked for a 16-month cliff period starting from the moment the tokens are created and officially listed on the exchange. During this entire time, the tokens will remain locked and cannot be used, sold, or transferred in any way. This ensures that the token supply remains stable and prevents any sudden influx of tokens into the market that could disrupt pricing. After the cliff period concludes, the vesting phase begins. During the vesting phase, token holders are permitted to sell a portion of their tokens each month, rather than all at once, which ensures a gradual and controlled release into the market. This carefully structured approach not only supports the project’s long-term stability but also helps to maintain and potentially enhance the token’s value within the ecosystem by avoiding sudden fluctuations and ensuring a more predictable market environment.

SBR Ratio

Triple Regulation

The SBR ratio (Swap, Burn, and Reserve) is a key mechanism in our tokenomics model, designed to be adaptable and responsive to the needs of our ecosystem. A portion of our revenue is received in our token, and the SBR ratio determines how these tokens are autonomously managed within the system. The tokens we receive are handled in three ways: Swap (exchanging tokens for fiat to support liquidity), Burn (permanently reducing the total token supply to increase scarcity), and Reserve (storing tokens in a decentralized reserve pool to manage and control circulation).

Initially, our strategy involves retaining most of these tokens, burning a significant portion to reduce the overall supply, and allocating some to the reserve fund and liquidity pools. This mechanism is designed to autonomously manage the token supply in a way that supports the long-term stability and utility of our token within the decentralized ecosystem. Over time, the SBR ratio may be autonomously adjusted based on the evolving needs of the project and changing market conditions, guided by smart contracts and decentralized governance protocols.

This strategy is underpinned by our ability to generate revenue in fiat currency through our traditional market operations, which provides a stable foundation while ensuring the tokenomics model remains flexible and adaptive. As our decentralized platform grows, the demand for our token as a payment currency within our ecosystem is expected to increase. By leveraging the SBR mechanism, we aim to maintain a balanced and sustainable token supply, ensuring that it remains a valuable and integral part of our decentralized platform, driven by community governance and smart contract automation.