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Tokenomics

Tokenomics in FOREST is built around one principle: every token should be able to express its own economic behaviour.

Instead of forcing tokens into a fixed template, FOREST allows creators to configure supply, fees, curves, buybacks, and distribution logic in a modular way. This section explains how each component works and how they interact to form a complete economic system.

1. Supply Model

FOREST does not enforce a fixed maximum supply.

Tokens use an elastic supply model shaped by user actions:

  • Tokens mint when users buy

  • Tokens burn or return to the pool when users sell

  • Staking, rewards, and airdrops draw from the defined allocation pools

Circulating Supply updates in real time based on:

  • tokens bought

  • tokens sold

  • tokens staked

  • tokens burned

  • tokens claimed from airdrops

[ Creator Configuration ] → [ Allocation Pools ] → [ Live Supply Behaviour ]

This gives creators flexibility while ensuring users can always track supply transparently.

2. Allocation Splits

Creators define how the token’s initial distribution is split across four main pools:

Pool
Purpose

Liquidity

Tokens paired with $FOREST to open trading and price discovery

Reserve

Project-owned supply for future use (team, marketing, ecosystem growth)

Staking

Tokens rewarded to participants staking into the ecosystem

These percentages always equal 100%.

Example:

  • Liquidity: 40%

  • Reserve: 30%

  • Staking: 20%

How Splits Work in Practice

  • Liquidity is locked into the pool at publish.

  • Reserve tokens remain in the project’s control.

  • Staking rewards release over time based on staking behaviour.

3. Fees

Fees create the economic engine that powers each token.

Creators configure:

  • Buy Fee: 0–100%

  • Sell Fee: 0–100%

Fees can be routed to:

  • creator treasury

  • protocol

  • buybacks

  • other configured destinations (depending on template)

Example Fee Routing

Buy Fee (5%)

  • 2% → Creator Treasury

  • 2% → Protocol

  • 1% → Buybacks

Sell Fee (7%)

  • 3% → Protocol

  • 4% → Buybacks

Fees influence:

  • sustainability

  • token liquidity

  • long-term incentives

  • market behaviour

High buy fees can discourage rapid entry. High sell fees can discourage dumping. Balanced fees stabilise the ecosystem.

4. Buybacks

Buybacks convert a % of collected fees or app revenue into automatic purchases of the token.

Buyback % can be configured from 0–100%.

Buybacks can operate in two modes:

A. Buy and Hold

Purchased tokens move into a designated treasury or module.

B. Buy and Burn

Purchased tokens are permanently removed from supply. Burning reduces circulating supply and increases scarcity.

5. Bonding Curves (Price Discovery Stage)

New tokens in FOREST begin in a curve-based environment where price is determined by a bonding-curve function chosen by the creator:

Straight, predictable price progression.

Price accelerates aggressively as supply expands.

Price rises sharply early, then stabilises.

What Curves Do

Curves handle early-stage price discovery. They allow tokens to:

  • raise liquidity gradually

  • react to demand

  • build a market before entering continuous trading

6. Graduation Threshold

Each token defines a liquidity target. Once that target is reached, the token transitions from curve-based pricing into a constant-product liquidity pool.

How the Threshold Works

The threshold is displayed in $FOREST equivalent, with a progress bar visible on the token page.

Graduation Threshold: 80,000 $FOREST Current Liquidity: 52,400 $FOREST Progress: 65%

Reaching the threshold triggers:

  • migration from curve pricing

  • activation of constant-product liquidity

  • entry into open trading conditions

Why Thresholds Exist

Thresholds ensure tokens graduate only when structurally ready.

  • They prevent premature migration

  • They ensure price stability before entering open liquidity

  • They help creators plan for distribution phases

The Graduation Threshold acts as a safeguard: creators maintain control, markets remain stable, and the transition into open liquidity is predictable.

7. Post-Graduation Mechanics (AMM Mode)

After crossing the threshold, the token enters AMM Mode where pricing follows a constant-product model.

The Core Formula

Pricing uses a constant-product function:

8. Full Token Lifecycle Diagram

This section outlines the complete lifecycle of a token created through FOREST, from initial configuration to long-term ecosystem mechanics.

Lifecycle Overview

The token moves through a series of defined states. Each state activates new mechanics while preserving the logic set by the creator.

  • Creator Config The creator defines all foundational mechanics.

  • Bonding Curve Launch Early trading builds liquidity and price discovery.

  • Graduation Threshold Hit A milestone that triggers progression into full liquidity.

  • AMM Liquidity Mode Advanced token features activate and market dynamics expand.

  • Long-term Ecosystem Mechanics The token reaches its mature phase and operates as part of a broader ecosystem.

1. Creator Config

This is the starting point. All parameters, mechanics, curves, fees, and logic are defined here.

↓

2. Bonding Curve Launch

The token begins trading on its bonding curve. Liquidity expands automatically as trading occurs.

↓

3. Graduation Threshold Hit

Once the graduation threshold is reached, the system transitions from bonding curve mode into open liquidity.

↓

4. AMM Liquidity Mode

The token now trades in AMM liquidity. Active systems begin operating:

  • fees

  • buybacks

  • staking

  • airdrops

↓

5. Long-term Ecosystem Mechanics

Sustained behaviour, rewards, supply logic, and ongoing token utilities evolve here.

The lifecycle ensures that a FOREST token evolves from a creator-defined concept into a fully autonomous economy with ongoing mechanics.

9. Example Tokenomics Profile (Simple)

A simple reference profile showing how a token’s structure can be organised inside FOREST.

Core Parameters

Supply: Elastic

Liquidity Split: 40% Reserve: 30% Staking Pool: 20% Airdrop Pool: 10%

Buy Fee: 3% Sell Fee: 5% Buyback: 40% of fees

Curve: Linear Graduation: 75,000 $FOREST

This profile represents a straightforward, creator-friendly setup that balances liquidity, staking incentives, and long-term progression.

10. Example Tokenomics Profile (Advanced)

This is an advanced tokenomics configuration showcasing how multiple mechanics can be combined into a single economic system.

Core Structure

Supply: Elastic + burn-enabled

Liquidity Split: 55% Reserve: 20% Staking: 15% Airdrop: 10%

Buy Fee: 4% Sell Fee: 6%

Buyback: 60% of all fees (burn) App Revenue: 10% routed into buybacks

Curve: Exponential Graduation: 120,000 $FOREST

Incentive Systems

Staking: dynamic emissions

Airdrops: SEED-based claim system

This profile combines elastic supply, burn mechanics, exponential growth curves, and multi-channel incentives into a unified advanced economy.

11. How All Elements Interact

This section explains how every action in the system triggers a chain reaction across the entire token economy.

Core Flow

User Buys →

  • Minting

  • Curve price ↑

  • Liquidity ↑

  • Fees generated

As a result:

  • Buybacks trigger

  • Treasury increases

  • Staking pools fill

  • Progress bar moves toward graduation

User Sells →

  • Burning or pool return

  • Curve price ↓

  • Fees generated

As a result:

  • Buybacks trigger

  • Sell pressure absorbed

The Closed-Loop Effect

Every action reinforces the system. Nothing is isolated. Everything feeds back into the token's lifecycle.

This creates closed-loop economics where:

  • trading activity funds rewards

  • liquidity increases stability

  • buybacks support the token

  • fees sustain the ecosystem

The more users interact, the stronger and more self-sustaining the token economy becomes.

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