Foundation Revenue
- Pawel Mastalerz
Overview
The Foundation's charter is to facilitate the growth and adoption of the FIO Protocol. In addition, in order to sustain itself financially, the Foundation must dedicate a portion of its budget to activities, which directly increase its revenue. Every Worker Proposal should consider revenue as one of its main KPIs.
Revenue
Unlike a traditional for-profit organization, the Foundation does not directly sell a product or service. It generates revenue from on-chain fees just like any other ecosystem participant.
Revenue Components
Component | Amount | Expiration | Description |
|---|---|---|---|
Foundation Reserves | 150,000 FIO tokens per day | July 2023 | At Mainnet launch 181,253,654 FIO Tokens were not minted and reserved for the Foundation to be minted and paid out at a rate of 150,000 per day. Programmatically, this limit will be reached in July 2023. |
Portion of every transaction | 5% of fee amount | Does not expire | 5% of every transaction is paid out to the Foundation. |
Primary TPID Reward | 10% of fee amount | Does not expire | The Foundation may build products or services and offer those directly to users, e.g. FIO Dashboard. When it does that, it inserts its own TPID and 10% of every transaction can be paid to the Foundation. |
New User Bounties | 40% of fee amount | Expires once 125M FIO Tokens are minted. As of 2/6/2023: 9.5M (~7.5%) FIO Tokens were minted. See counter updated daily. | Similarly to Primary TPID Rewards, if the Foundation inserts its own TPID, 40% of every transaction is paid to the Foundation. |
Staking TPID reward | 11% of staking reward | Does not expire | Similarly to Primary TPID Rewards, if the Foundation inserts its own TPID for unstaking, 11% of staking rewards paid to users are paid to the Foundation. |
Short-term vs long-term
In the short-term, when the volume of transactions is low, the primary sources of Foundation income are the Reserves and TPID Bounties. In the long-term, its envisioned that the Foundation can sustain its operations from 5% of every transaction + TPID Rewards.
Free FIO Crypto Handles
At Mainnet launch (modified by FIP-21 and FIP-23), the Foundation received 90M FIO Tokens designated to be used as “FIO Crypto Handles Giveaways”, meaning to fund the registration of free FCHs.
As of 2/6/2023: approximately 25M FIO Tokens have been used and 65M remain. At current fee amounts and rate of registrations it will last for approximately 32 more months.
Since these tokens are locked and cannot be used for any other purpose, when the Foundation spends these tokens for free FCH, the above mentioned revenue components can be claimed.
Example Revenues
Example | Fee amount | Revenue to Foundation |
|---|---|---|
End user buys a FIO Domain via FIO Dashboard direct | 1,000 FIO | Portion of every transaction: 1,000 * 5% = 50 Primary TPID Reward: 1,000 * 10% = 100 New User Bounties: 1,000 * 40% = 400 Total: 550 FIO Tokens |
End user gets a Free FCH via FIO Dashboard direct | 50 FIO | Portion of every transaction: 50 * 5% = 2.5 Primary TPID Reward: 50 * 10% = 5 New User Bounties: 50 * 40% = 20 Total: 27.5 FIO Tokens |
End user buys a FIO Domain via FIO Dashboard legacy partner | 1,000 FIO | Portion of every transaction: 1,000 * 5% = 50 Total: 50 FIO Tokens |
User unstakes FIO Tokens via Dashboard direct | Staking reward: 1,000 FIO | Staking TPID Reward: 1,000 * 11% = 111 Total: 111 FIO Tokens |