> For the complete documentation index, see [llms.txt](https://docs.forest.inc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.forest.inc/core-concepts-overview.md).

# Core Concepts Overview

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FOREST is built on a set of mechanics that work together to make token creation flexible, programmable and predictable. This page explains the concepts you will see throughout the docs and how they interact when a token is launched inside the protocol.
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Forest Protocol is a modular creation protocol on BNB Chain. Every part of a token — supply, pricing, staking, games, rewards and more — is configurable by the creator.

## 1. Token Structure

{% tabs %}
{% tab title="Supply" %}
Every token launched on Forest Protocol has a fixed supply of 1,000,000,000 tokens. Supply does not inflate or change after launch. What creators control is how that supply is distributed and what mechanics operate around it — fees, buybacks, burns, staking rewards, and game vaults.

* Fixed supply: 1B tokens per launch
* Deflationary mechanics available through burns and buybacks
* Supply allocation is fully configurable at launch
  {% endtab %}

{% tab title="Distribution" %}
Creators decide how the fixed supply is allocated:

* Liquidity
* Treasury
* Staking rewards
* Airdrops
* Game vault / reward pools
* External purposes

Distribution determines creator influence, available liquidity, and community incentives.
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## 2. Bonding Curves & Graduation

First permissionless launchpad with customizable bonding curves. The curve defines how token price moves during the early stage of its lifecycle.

{% tabs %}
{% tab title="Curve Types" %}
**Curve Types:**

* **Linear** — Steady price increase per buy. Predictable, transparent. Best for straightforward launches with no surprises.
* **Logarithmic** — Fast initial ramp that stabilizes over time. Rewards early participants while keeping later entries stable.
* **Exponential** — Slow start, steep acceleration as demand builds. Rewards patience and conviction.
  {% endtab %}

{% tab title="Curve Duration" %}
The curve phase lasts until the graduation threshold of 100K $FOREST is reached. This gives creators full control over how their token behaves at launch — whether it favors early adopters, smooth distribution, or narrative-driven momentum.
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{% tab title="Why It Matters" %}
This mechanism gives creators full control over how their token behaves at launch — whether it favours early adopters, smooth distribution or narrative-driven volatility.
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{% endtabs %}

<figure><img src="/files/m310CAC0LkjsIws4HaL2" alt=""><figcaption></figcaption></figure>

## 3. Liquidity System

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Liquidity is the backbone of every token launched in FOREST.
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Every token launched on Forest Protocol is paired with $FOREST liquidity from the first trade.

{% tabs %}
{% tab title="Curve Phase" %}
The token begins on the bonding curve selected by the creator. The curve enables early price discovery and steady liquidity growth. No LP bootstrapping needed — virtual liquidity is live instantly.
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{% tab title="Graduation" %}
Once a defined threshold is reached, the token transitions into a standard liquidity model. Price is set by pool balance. The token trades like any other asset in an automated market environment.
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{% tab title="Why $FOREST Liquidity Matters" %}

* Every trade routes through $FOREST
* Every transaction feeds the $FOREST flywheel
* Every token benefits from protocol-backed liquidity from day one
* No cold starts. No empty pools.

Lifecycle: **Discovery → Stability → Long-term trading**
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## 4. Fees & Buybacks

Fees play a central role in how tokens behave in FOREST.\
Creators define both buy and sell fees, expressed as percentages.

{% tabs %}
{% tab title="Fee Routing" %}
Fees can route value in different ways:

* to project treasury
* to the protocol
* to automatic buybacks
* to burns
* to reward pools
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{% tab title="Buybacks" %}
Creators can direct part of fee revenue into purchasing their own token from the market. This can:

* Introduce deflationary pressure
* Support liquidity depth
* Create predictable recurring demand
* Fund reward pools for games and campaigns
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## 5. Staking & Reward Mechanics

Forest Protocol has two staking layers — protocol-level $FOREST staking and project-level token staking. Both are native. No third-party contracts. No extra setup.

{% tabs %}
{% tab title="$FOREST Staking" %}
[Staking](https://forest.inc/stake) $FOREST is the core participation mechanic of the protocol:

* Earn APY on staked $FOREST (variable, based on staking duration and total staked)
* Earn Seeds — the off-chain currency used to claim token rewards through Seed Vault auctions
* Longer lock durations earn higher multipliers on both yield and Seeds
* Duration options: 1, 3, 6, 9, 12 months
  {% endtab %}

{% tab title="Individual Token Staking" %}
Every token launched on Forest Protocol can be configured with built-in staking:

* Creators allocate a portion of token supply toward staking rewards
* Rewards can be fixed, dynamic, or tied to app engagement
* Creators set the pacing and size of reward emissions
* Stakers earn yield in the project token
* Encourages long-term holding and active participation in the token's economy
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{% tab title="Why Both Matter:" %}

* $FOREST staking connects users to the protocol economy — Seeds, auctions, flywheel
* Token staking connects holders to the individual project economy — yield, rewards, retention
* Both run simultaneously. A user can stake $FOREST for Seeds and yield and stake a project token for yield at the same time.
  {% endtab %}
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## 6. $FOREST & Seed Economy

{% tabs %}
{% tab title="$FOREST" %}
The native token and liquidity backbone:

* Every token launched is paired with $FOREST
* Every trade routes through it
* Every fee and buyback touches it
* It's the value layer everything sits on
  {% endtab %}

{% tab title="Seeds" %}
The off-chain currency of the Forest economy. Earned by:

* Staking $FOREST
* Joining Trading competitions
* Participating in specified play campaigns

Seeds are not tradeable. They are usable — in the Seed Vault.
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{% tab title="Seed Vault" %}
Time-bound auctions where Seeds convert into real tokens:

* Each auction has a fixed reward pool ($FOREST or partner tokens)
* Users deposit Seeds to compete for a pro-rata share
* Top depositors earn multipliers on their effective Seed count
* Rewards distributed proportionally when the auction ends

[Seed Vault](https://forest.inc/vault)
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{% tab title="The Loop" %}
Stake, trade, play → Earn Seeds → Deposit in Vault → Claim token rewards → Stake, trade, play again
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## 7. Trading Environment

The trading interface adapts based on the token's current state.

**During Curve Phase:** Trades follow the bonding curve formula.

**After Graduation:** Trading follows the liquidity pool balance.

**Visible to users at all times:**

* Current price
* Liquidity depth
* Fees
* Recent trades
* Buyback activity
* Tokenomics overview

Full transparency. Anyone can understand how a token behaves at a glance.

## 8. Creator Control & Finality

Before publishing, the creator can modify all configuration settings.

Once published, the token becomes immutable:

* Tokenomics are frozen
* Fees and routes are locked
* Distribution cannot be changed

Forest gives creators full flexibility before deployment, and users full predictability after.