> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fortisarena.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Tokenomics

> Utility-first dual-token system for access, rewards, and platform engagement

# Tokenomics Overview

> **Utility + Access + Commitment — NOT Equity, NOT Revenue Share**

FortisArena uses a **dual-token system** designed for long-term sustainability, legal safety, and real platform utility. Both tokens serve strictly different purposes and have **no ownership or profit-sharing rights** in the company.

<Warning>
  **Important Legal Distinction**

  ❌ Tokens are **NOT** equity\
  ❌ Tokens are **NOT** revenue share\
  ❌ Tokens are **NOT** company ownership

  ✅ Tokens = **Utility + Access + Commitment** only
</Warning>

***

## 🎯 First Principles

This model prioritizes:

| Principle                 | Implementation                            |
| :------------------------ | :---------------------------------------- |
| **Legal Safety**          | No dividend language, no profit promises  |
| **Founder Control**       | Company retains revenue, fees, roadmap    |
| **Platform Flexibility**  | Tokens support ecosystem, not control it  |
| **Real Utility**          | Access, reputation, and in-platform usage |
| **Regulatory Compliance** | Works across Asia, EU, Middle East        |

***

## 🪙 Token Structure

```mermaid theme={null}
flowchart TB
    subgraph FRT["FRT"]
        FRT_S[Supply: 200M Fixed]
        FRT_U[Utility: Power, Access, Trust]
        FRT_U1[Organization Registration]
        FRT_U2[Tournament Hosting]
        FRT_U3[Reputation Staking]
        FRT_U4[Limited Governance]
    end
    
    subgraph FPT["FPT — Fortis Points Token"]
        FPT_S[Supply: 1B Fixed]
        FPT_U[Utility: Usage, Rewards, Activity]
        FPT_U1[Tournament Rewards]
        FPT_U2[Creator Tips]
        FPT_U3[Boosts & Perks]
        FPT_U4[Cosmetics]
    end
    
    FRT -->|Unlocks Platform Power| Platform[FortisArena Platform]
    FPT -->|Powers Daily Activity| Platform
```

### Key Differences

| Aspect             | FRT                          | FPT                      |
| :----------------- | :--------------------------- | :----------------------- |
| **Full Name**      | FRT                          | FPT                      |
| **Supply**         | 200,000,000 (Fixed)          | 1,000,000,000 (Fixed)    |
| **Purpose**        | Power, Access, Trust         | Usage, Rewards, Activity |
| **Launch**         | Phase 1 (Live)               | Phase 2 (Coming Soon)    |
| **Governance**     | Limited (non-financial only) | None                     |
| **Who Needs It**   | Organizations, serious users | All players, creators    |
| **Revenue Rights** | ❌ None                       | ❌ None                   |

***

## 🟣 FRT

<Info>
  **Contract Address (BSC)**: `0xFf10d933E1Ca7799866B5D2A615e562CAd306c96`
</Info>

### What FRT Is

FRT represents **serious commitment** to the platform. It's required for organizations, tournament hosts, and power users who want advanced features.

### What FRT Is NOT

* ❌ Profit-sharing token
* ❌ Dividend-paying asset
* ❌ Company equity
* ❌ Guaranteed return investment

### Core Use Cases

#### 1️⃣ Access Staking (No Money Promised)

Stake FRT to unlock platform capabilities:

| Feature                 | FRT Required | Benefit                   |
| :---------------------- | :----------- | :------------------------ |
| **Organization Status** | 10,000 FRT   | Register as esports org   |
| **Tournament Hosting**  | 5,000 FRT    | Create custom tournaments |
| **Guild Expansion**     | Variable     | Unlock larger guild sizes |
| **Advanced Analytics**  | 2,000 FRT    | Detailed stats & reports  |
| **Higher Limits**       | 1,000 FRT    | Increased withdrawal caps |
| **Verified Badge**      | 5,000 FRT    | Blue checkmark status     |

<Note>
  **Higher stake = Higher responsibility**

  Organizations with more FRT staked have more to lose if they violate rules.
</Note>

#### 2️⃣ Tournament Entry Fees

Serious competitions require **FRT for entry**:

| Tournament Tier | Entry Fee | Est. Value  |
| :-------------- | :-------- | :---------- |
| **Amateur**     | 10 FRT    | \~\$1-2     |
| **Semi-Pro**    | 50 FRT    | \~\$5-10    |
| **Pro**         | 200 FRT   | \~\$20-40   |
| **Elite**       | 500 FRT   | \~\$50-100  |
| **Legend**      | 2,500 FRT | \~\$250-500 |

**Why FRT for entry?**

* Ties serious competition to access token
* Creates natural demand for FRT
* Entry fees recycled to prize pools (mostly in FPT)

#### 3️⃣ Occasional Premium Rewards

While **90% of rewards are FPT**, special achievements earn **FRT**:

| Achievement                | FRT Reward         | Occurrence |
| :------------------------- | :----------------- | :--------- |
| **International Champion** | 50,000-500,000 FRT | Annual     |
| **Season Grand Winner**    | 25,000-100,000 FRT | Quarterly  |
| **Major Creator Grant**    | 10,000-50,000 FRT  | Monthly    |
| **Critical Bug Bounty**    | 5,000-25,000 FRT   | As found   |

#### 4️⃣ Lock & Burn Mechanism

When FRT is used for platform features:

| Action             | Burn % | Time-Locked %  | Result              |
| :----------------- | :----- | :------------- | :------------------ |
| Org Registration   | 20%    | 80% (1 year)   | Supply pressure     |
| Tournament Hosting | 10%    | 90% (6 months) | Reduced circulation |
| Guild Expansion    | 15%    | 85% (1 year)   | Long-term holding   |

> This creates **demand without payout obligations** — supply pressure from real usage.

#### 5️⃣ Reputation Staking (Trust System)

Organizations, guilds, and hosts must stake FRT as collateral:

```
Scenario: Tournament host stakes 50,000 FRT
↓
If host commits fraud or allows cheating
↓
Stake gets SLASHED (partial or full)
↓
Victims compensated from slashed amount
```

**This creates a Web2 + Web3 hybrid trust system:**

* Traditional verification (KYC)
* Economic collateral (FRT stake)
* Transparent slashing (on-chain)

#### 6️⃣ Limited Governance (Non-Financial Only)

FRT holders can vote on:

✅ **Allowed Topics:**

* Which games to add next
* Tournament rule changes
* Community standards updates
* Feature priority ranking

❌ **NOT Allowed:**

* Treasury control
* Fee changes
* Revenue distribution
* Company decisions

### FRT Distribution (200M Total)

| Allocation         | Percentage | Amount | Vesting/Lock          |
| :----------------- | :--------- | :----- | :-------------------- |
| **Team**           | 15%        | 30M    | 2-4 year vesting      |
| **Pre + Private**  | 20%        | 40M    | 6-12 month lock       |
| **Access Staking** | 15%        | 30M    | Utility pool          |
| **Liquidity**      | 20%        | 40M    | DEX liquidity         |
| **Ecosystem**      | 15%        | 30M    | Partnerships, grants  |
| **Reserve**        | 15%        | 30M    | Emergency & stability |

### Reserve Strategy

The 15% reserve exists for:

* **Emergency liquidity** during market shocks
* **Long-term platform stability**
* **Strategic partnerships** support
* **Market confidence** signaling

<Warning>
  Reserve is **NOT for dumping**. Protected by multi-sig and transparency requirements.
</Warning>

***

## 🔵 FPT — Fortis Points Token

<Warning>
  **Phase 2 Launch**: FPT will launch after platform reaches critical mass. No contract address yet.
</Warning>

### What FPT Is

FPT is the **in-platform currency** for daily activities, rewards, and micro-transactions. Think of it as "platform credits" that happen to be on the blockchain.

### What FPT Is NOT

* ❌ Governance token
* ❌ Power/acquisition token
* ❌ Revenue rights
* ❌ Investment vehicle

### Core Use Cases

#### 1️⃣ Rewards Distribution

Earn FPT for platform participation:

| Activity               | Reward           | Timing           |
| :--------------------- | :--------------- | :--------------- |
| **Tournament Win**     | 100-10,000 FPT   | Instant          |
| **MVP Performance**    | 500-2,000 FPT    | Post-match       |
| **Achievement Unlock** | 50-500 FPT       | Instant          |
| **Seasonal Ladder**    | 1,000-50,000 FPT | End of season    |
| **Creator Engagement** | Variable         | Real-time        |
| **Referral Bonus**     | 100 FPT          | On friend signup |

#### 2️⃣ In-Platform Spending

Use FPT for platform features:

| Purchase             | FPT Cost   | Benefit                   |
| :------------------- | :--------- | :------------------------ |
| **Guild Utilities**  | 500-5,000  | Guild perks & features    |
| **Creator Tips**     | Any amount | Support streamers         |
| **Visibility Boost** | 200-1,000  | Promote posts             |
| **Cosmetic Perks**   | Variable   | Profile customization     |
| **Free Tournaments** | 0 FPT      | Practice & fun (no prize) |

**Spend Mechanics:**

* Some FPT gets **burned** (deflationary)
* Some FPT gets **recycled** to reward pool

#### 3️⃣ Utility Staking (NOT Investment)

Stake FPT for platform benefits (NOT APY):

| Stake Amount | Unlock               | Duration     |
| :----------- | :------------------- | :----------- |
| 1,000 FPT    | 5% fee discount      | While staked |
| 5,000 FPT    | Priority matchmaking | While staked |
| 10,000 FPT   | Exclusive cosmetics  | While staked |

<Warning>
  **NO APY PROMISES** — Staking FPT gives utility benefits only, not financial returns.
</Warning>

### FPT Distribution (1B Total)

| Allocation                 | Percentage | Amount | Purpose                         |
| :------------------------- | :--------- | :----- | :------------------------------ |
| **Rewards & Achievements** | 30%        | 300M   | Tournament prizes, MVP, ladders |
| **Ecosystem & Community**  | 20%        | 200M   | Grants, partnerships            |
| **Sales**                  | 15%        | 150M   | Public sale, liquidity          |
| **Utility Staking**        | 20%        | 200M   | Staking rewards pool            |
| **Liquidity**              | 10%        | 100M   | DEX liquidity                   |
| **Reserve**                | 5%         | 50M    | Emergency buffer                |

***

## 🔁 How Value Actually Builds

```
Platform Growth
      ↓
More Users + More Orgs + More Tournaments + More Guilds
      ↓
Users Need:
  • FRT to unlock power (org registration, hosting)
  • FPT to play & spend (entries, tips, boosts)
      ↓
FRT gets locked/burned
FPT circulates/burns
      ↓
Supply pressure + Real demand
      ↓
Market value reflects PRODUCT SUCCESS
```

> **No fake yield. Real usage only.**

***

## ⚖️ Legal Safety Checklist

Our token design passes these critical checks:

| Check                      | Status | How We Comply                  |
| :------------------------- | :----- | :----------------------------- |
| **No Dividend Language**   | ✅      | No profit-sharing mentioned    |
| **No Profit Promises**     | ✅      | No guaranteed returns          |
| **No Revenue Share**       | ✅      | Company keeps all revenue      |
| **Utility-First Tokens**   | ✅      | Access and usage only          |
| **Delayed FPT Launch**     | ✅      | Phase 2, after platform proven |
| **Clear ToS Separation**   | ✅      | Platform ≠ DAO                 |
| **No Investment Contract** | ✅      | Howey test considerations      |

**This model is designed to be compliant across:**

* 🇸🇬 Singapore (MAS guidelines)
* 🇦🇪 UAE (VARA framework)
* 🇪🇺 EU (MiCA regulations)
* 🇺🇸 USA (securities considerations)

***

## 🏗️ Platform Control (Company Structure)

**Company (FortisArena Inc.) Controls:**

* ✅ All revenue
* ✅ All fee structures
* ✅ Treasury management
* ✅ Product roadmap
* ✅ Partnership decisions
* ✅ Platform rules

**Tokens Support:**

* ✅ User engagement
* ✅ Ecosystem growth
* ✅ Platform utility
* ✅ Trust mechanisms

**Tokens Do NOT Control:**

* ❌ Company decisions
* ❌ Revenue distribution
* ❌ Platform ownership

***

## 📊 Comparison: Traditional vs Fortis Model

| Aspect               | Traditional ICO | Fortis Model                |
| :------------------- | :-------------- | :-------------------------- |
| **Token = Equity?**  | Often implied   | ❌ Explicitly NO             |
| **Profit Sharing?**  | Common promise  | ❌ None                      |
| **Governance Scope** | Everything      | Limited, non-financial only |
| **Legal Risk**       | High            | Minimized                   |
| **Founder Control**  | Diluted         | Retained                    |
| **Regulatory Fit**   | Poor            | Designed for compliance     |
| **Value Source**     | Speculation     | Real platform usage         |

***

## 🏆 Why This Model is Strong

✅ **Long-term sustainable** — No unsustainable yield promises
✅ **Investor-safe** — Clear utility, no misleading expectations
✅ **Founder-safe** — Retain control and flexibility
✅ **Regulator-safe** — Designed for compliance
✅ **Gamer-friendly** — Simple, useful, no financial complexity
✅ **Real economy** — Value from actual platform usage
✅ **No future regret** — Won't need to restructure later

***

## 📚 Learn More

* **[FRT Details](/tokenomics/frt)** — Deep dive into FRT
* **[FPT Details](/tokenomics/fpt)** — Deep dive into Fortis Points Token
* **[Smart Contracts](/smart-contracts)** — Technical documentation
* **[Staking Guide](/tokenomics/staking)** — How to stake (utility only)

***

> **Tokens are tools for the ecosystem, not claims on the company.**