FNDZ Token Utility & Platform Revenue
• FNDZ token staking • vault auto-buy • vault owner staking • asset listings • FNDZ staking fee • FNDZ index fee • early redemption fee
Staking–the allocation of FNDZ tokens to a smart contract in return for time-based reward–is a way to show our appreciation for FNDZ supporters and token holders. Our staking programmes go beyond the traditional model, offering multiple rewards in a single contract: 1) the native FNDZ token and 2) tokens from other projects listed on the platform. This will enable stakers to diversify their portfolio with new and innovative project tokens at an early stage.
Performance fee: 12.5 - 25% of the performance fee from each vault is added to the staking pool.
Redemption fee: If a user makes a withdrawal from the staking contract before the minimum term expires, a 5% redemption fee will be charged on the deposit and distributed as staking rewards.
Staking-as-a-service products: FNDZ will leverage its existing vault technology to offer staking services to other projects. The setup fee for these services will be added to the staking pool in native project tokens.
Listing fee: FNDZ will charge a listing fee in the native token of the listed projects. When a new project is listed, these native tokens will be added to the relevant FNDZ staking pool, allowing you to build a diverse portfolio.
As the platform grows, stakers will have the opportunity to benefit from an ecosystem of vault owners, asset partners, and blockchain projects that use our staking-as-a-service technology.
The FNDZ ecosystem consists of the FNDZ token and the FNDZ platform. The FNDZ token will serve multiple key functions in the first release, namely:
settling platform fees
providing staking rewards
incentivising vault owners
operating staking-as-a-service products
The following section describes these functions in detail.
To stake on the FNDZ platform, users place their FNDZ tokens in a staking contract. Should the user wish to unstake their $FNDZ, they can do so free of charge following a standard unwinding period of 10 days. Unstaking before the 10-day period expires will incur a 5% fee charged on the total amount deposited. The 5% redemption fee is then sent to the FNDZ staking contract and becomes part of the reward for all other FNDZ stakers.
FNDZ staking offers weighted rewards. In other words, the amount of FNDZs staked is measured as a share of the total staking pool, and thus a higher contribution results in higher rewards:
So, holding 10 FNDZ out of a total of 100 FNDZ tokens in the staking pool means holding a 10% share of the total pool.
The rewards that are generated and dropped into the FNDZ staking vault are then distributed according to share distribution.
If $1000 in rewards are allocated to the staking contract, the 10% share would be entitled to $100 of the total rewards.
What makes FNDZ staking special is that these rewards are generated from the returns of the vault owners' performance. The performance of these vaults is measured in a variety of altcoins. When the performance fee is collected, the altcoins are automatically sent to the staking contract and the FNDZ stakers build a diverse portfolio of altcoins simply by staking FNDZ.
Vault owners are incentivized to stake FNDZ tokens to receive an additional 25% of the performance fee, on top of the standard 50%. In order to unlock the extra 25% allocation, the vault owner must stake a minimum of 10K FNDZ tokens. This encourages long-term demand by locking up tokens on the platform, benefitting all users.
Below is an overview of the performance fee tiers, based on how many FNDZ tokens the vault owner decides to lock in the FNDZ staking contract:
FNDZ vaults feature an auto-buy function. Depending on the selected fee model the vault automatically converts 1-2% of the total deposit into FNDZ tokens. On each subsequent new deposit the respective 1-2% will trigger the auto-buy feature of FNDZ tokens. These tokens are not tradable and therefore locked in the vault during the term of the deposit. They can be sold only when a depositor withdraws their funds from the vault.
As a rule, the auto-buy function increases from 1% to 2% if the vault's management fee exceeds 2% or the performance fee exceeds 20%.
FNDZ aims to facilitate access to cryptocurrencies and allow users to pursue high-value strategies. At its core, FNDZ is a copy trading platform with a variety of tradable crypto tokens and protocols. In the near future, as the platform grows in size, FNDZ will charge a listing fee in the native token of listed projects. When a new project is listed on the FNDZ platform, part of the listing fee is used by FNDZ to cover operating costs; the remainder is then added to the FNDZ staking pool and distributed as rewards to FNDZ stakers.
FNDZ will also offer index vaults. These index vaults feature auto-rebalancing strategies for various asset compositions, such as a market cap weighted average; category indexes such as the Top 10 DeFi-coins; and the Top Five altcoins tracking a specific market segment. Management fees between 1 - 2% and performance fees between 1 - 10% are charged for index vaults. As index vaults have running costs, fees are first put towards meeting these costs; the remainder reverts directly to the FNDZ DAO.
Joining FNDZ is free of charge to all users. Revenue instead flows from a variety of fees. Note that all fees are fully transparent; there are no hidden fees or charges. Fee-based revenues go partly to vault owners and stakers as rewards; partly to FNDZ for the sole purpose of maintaining and upgrading its infrastructure. FNDZ does not profit from fees levied.
Four types of fees may be charged:
Vault owners have the option of charging their followers a management fee. Management fees represent rewards for services rendered by vault owners in setting up and operating vaults for others. The management fee is set by vault owners and ranges from 0 - 3%. **The fee is split evenly. Half goes to the vault owner and the other half to the FNDZ DAO. **
A performance fee is chargeable on the profits earned by a vault owner. It is not charged in cases of negative performance. Where a vault owner’s strategy has been successful, the performance fee is levied following a crystallization period. This period is by default 90 days but is subject to modification by individual vault owners and can be set to weekly, monthly, or quarterly intervals. The vault owner may set a performance fee ranging from 0 - 30% per vault.
The performance fee is split into three parts. One half of the performance fee, or 50%, goes directly to the vault owner. Twenty-five percent to the FNDZ DAO; the final 25% flows into the FNDZ staking pool.
Vault owners at the highest performance tier (having staked 10K+ $FNDZ tokens) enjoy the following performance fee allocation:
Note that 30% is the maximum performance fee that can be charged. Individual vault owners might choose to lower their performance fee, but they cannot raise it above this level.
There is a small fee payable upon each transaction. It is a maximum of 0.2%, all of which reverts to the FNDZ DAO. The FNDZ DAO does not profit from these fees; rather, these fees are used to improve the platform, through various features such as trader tournaments, or they are used to buy back tokens and then burn them.
We hope this primer on the FNDZ token’s utility features has gotten you excited about plugging the gap for DeFi copy trading! Whether you’re an experienced trader eager to open your first FNDZ vault; a prospective copier soon to reap the benefits of top traders and staking; or a DeFi project looking to expand your token utility, please get in contact with us via our Telegram or Discord channel as we continue to work towards our big launch.