In crypto, scams are nothing new. But over the past two years, the pace, sophistication, and sheer scale of rug pulls have reshaped what “rug” means to the public. From Movement, a VC-backed project, to $YZY, a meme coin tied to Kanye West, to AQUA, a Solana project that disappeared overnight — investors’ funds have drained away like water through a sieve, leaving portfolios wrecked and communities disillusioned.

According to RootData, since 2024 there have been 260+ rug pulls, wiping out over $500 million. And worse — most victims have had no real path to recourse. Blockchain may run on the mantra “code is law”, but when founders vanish, contracts aren’t open-sourced, or socials go dark, users are left helpless.

Traditional finance has risk-hedging baked in at every level. Web3, by contrast, prides itself on “decentralized autonomy” but often collapses into chaos when real risk hits — offering only short-term appeasement or improvised payouts. What’s missing is a system.

That’s why today we officially announce the FAIR3 Fairness Foundation — a community-driven, on-chain insurance mechanism. Independent of projects or exchanges, it’s designed to answer the long-ignored question:

And beyond that: Can fairness itself become a buy-side force in crypto?

Traditionally, insurance is provided by centralized companies: users pay premiums, and the company compensates in case of an accident. The Fair3 Fairness Foundation essentially brings this model on-chain, with three critical innovations:

• On-chain transparency: Eligibility is verified by snapshots, preventing retroactive token purchases to game compensation.

• Stake-linked rights: Both payout size and voting power are directly tied to the amount of $FAIR3 staked by the user.

• Community governance: Whether an incident qualifies as a “compensation case” is decided collectively by token holders.

At its heart, the Foundation exists to compensate users who suffer unfair losses. Eligibility requires that victims both hold $FAIR3 (CA: 0x6952c5408b9822295ba4a7e694d0C5FfDB8fE320) and the affected project’s tokens at the time of the incident, and stake their $FAIR3.

Key features:

• Pool Size: Each approved rug event receives 50,000–100,000 $FAIR3 allocated to a compensation pool. Quarterly allocation: 150,000–300,000 $FAIR3.

• Two Pools Per Case:

  • Comp Pool (80%): For holders of both $FAIR3 and the affected project’s tokens.

  • Public Pool (20%): Open to all verified presale victims.

• Payout Formula: Based on staking duration × amount staked, capped at 10% of the pool per user.

• One Pool Rule: Each user can only claim from one pool per case.

🔒 Note: The upgraded mechanism activates when the staking contract goes live. Until then,Until then, the old mechanism will remain in use.

• User A: stakes 5,000 for 180 days (×3.00) → coefficient = 15,000

• User B: stakes 10,000 for 60 days (×1.25) → coefficient = 12,500

• User C: stakes 24,500 for 360 days (×5.00) → coefficient = 122,500

Total coefficient = 15,000 + 12,500 + 122,500 = 150,000

compensation shares

• User A: (15,000 / 150,000) × 80,000 = 8,000 $FAIR3

• User B: (12,500 / 150,000) × 80,000 = 6,666.67 $FAIR3

• User C: 8,000 $FAIR3 (capped from 65,333.33 $FAIR3)

The result: buying and staking $FAIR3 isn’t just buying a token — it’s like buying a decentralized on-chain insurance.

In addition, staking more $Fair3 means more than just higher coverage: it also grants governance rights. With over 5,000 $FAIR3 staked, users can vote, and with over 100,000 $FAIR3, users can submit compensation proposals. In other words, staking $Fair3 is essentially like purchasing an insurance policy — one that also gives the policyholder a say in the outcome of claims.

If it were only insurance, the Fair3 Fairness Foundation would at best serve as a “stop-loss tool” for users. Its true uniqueness lies in how the mechanism is inherently tied to buy-side logic:

• Holding equals protection: Users must stake $FAIR3 to qualify for compensation.

• The more you hold, the greater the protection: Larger stakes not only increase coverage but also grant proposal rights.

• Governance is bound to staking: 5,000 $FAIR3 are required to vote, while 100,000+ staked $FAIR3 are needed to submit proposals.

• Any suspicious account or bad actor will be excluded.

The true power of this mechanism lies in how it naturally creates a buy demand flywheel:

Insurance drives buying and staking → buying and staking increase market cap → higher market cap strengthens insurance capacity → stronger insurance capacity attracts more buying.

It’s not just users — projects are also brought into the flywheel.

The Foundation has launched a Fairness Margin Mechanism, allowing projects to proactively buy and stake Fair3 as a public commitment that they will not rug. If a project later rugs or its token collapses in value, this margin will be distributed to all holders of the affected token.

• For projects, it serves as a transparent credit guarantee.

• For users, projects that purchase a fairness margin provide added security and confidence.

• For Fair3, it means that in addition to buy-and-stake demand from users, project teams themselves become a major source of buy-side demand — further accelerating the flywheel effect.

Fair3 represents more than a “personal risk protection tool.” It is emerging as a system-level governance protocol that can be adopted by platforms, exchanges, and project teams alike.

As Fair3 CTO Wang Xin (founder of QVOD) noted in an interview:

“Fair3 is not a project built for short-term speculation. It aims to solve the long-standing lack of ‘public goods structures’ in crypto. That takes time to build, and real incidents to prove its value.”

Similarly, Anna Ann, founder of UnicornVerse and investor in Fair3, emphasized:

“Today, most projects and platforms try to bind users with incentives, but very few build structural trust flywheels from the perspective of insurance mechanisms. Fair3 shows us this possibility.”

The Fair3 Foundation mechanism demonstrates a new path:

• It transforms “fairness” from an idealistic slogan into visible, tangible compensation guarantees.

• It transforms “buying tokens” from speculative behavior into a long-term logic of buying insurance and participating in governance.

The greatest value of this system is not only compensating victims, but also using the flywheel effect to gradually accumulate a community of long-term holders.

In the uncertainty-filled world of crypto, this may be the most precious form of certainty.

FAIR3 now carries a fuller meaning: The FAIR3 Fairness Foundation — a living, breathing safety net for anyone who dares to build and believe in an open world.

Because fairness isn’t just a feature to be toggled on.

It’s the bedrock of everything we’re building next.

And together, we’ll make sure unfairness has nowhere left to hide.

In crypto, scams are nothing new. But over the past two years, the pace, sophistication, and sheer scale of rug pulls have reshaped what “rug” means to the public. From Movement, a VC-backed project, to $YZY, a meme coin tied to Kanye West, to AQUA, a Solana project that disappeared overnight — investors’ funds have drained away like water through a sieve, leaving portfolios wrecked and communities disillusioned.

According to RootData, since 2024 there have been 260+ rug pulls, wiping out over $500 million. And worse — most victims have had no real path to recourse. Blockchain may run on the mantra “code is law”, but when founders vanish, contracts aren’t open-sourced, or socials go dark, users are left helpless.

Traditional finance has risk-hedging baked in at every level. Web3, by contrast, prides itself on “decentralized autonomy” but often collapses into chaos when real risk hits — offering only short-term appeasement or improvised payouts. What’s missing is a system.

That’s why today we officially announce the FAIR3 Fairness Foundation — a community-driven, on-chain insurance mechanism. Independent of projects or exchanges, it’s designed to answer the long-ignored question:

And beyond that: Can fairness itself become a buy-side force in crypto?

Traditionally, insurance is provided by centralized companies: users pay premiums, and the company compensates in case of an accident. The Fair3 Fairness Foundation essentially brings this model on-chain, with three critical innovations:

• On-chain transparency: Eligibility is verified by snapshots, preventing retroactive token purchases to game compensation.

• Stake-linked rights: Both payout size and voting power are directly tied to the amount of $FAIR3 staked by the user.

• Community governance: Whether an incident qualifies as a “compensation case” is decided collectively by token holders.

At its heart, the Foundation exists to compensate users who suffer unfair losses. Eligibility requires that victims both hold $FAIR3 (CA: 0x6952c5408b9822295ba4a7e694d0C5FfDB8fE320) and the affected project’s tokens at the time of the incident, and stake their $FAIR3.

Key features:

• Pool Size: Each approved rug event receives 50,000–100,000 $FAIR3 allocated to a compensation pool. Quarterly allocation: 150,000–300,000 $FAIR3.

• Two Pools Per Case:

  • Comp Pool (80%): For holders of both $FAIR3 and the affected project’s tokens.

  • Public Pool (20%): Open to all verified presale victims.

• Payout Formula: Based on staking duration × amount staked, capped at 10% of the pool per user.

• One Pool Rule: Each user can only claim from one pool per case.

🔒 Note: The upgraded mechanism activates when the staking contract goes live. Until then,Until then, the old mechanism will remain in use.

• User A: stakes 5,000 for 180 days (×3.00) → coefficient = 15,000

• User B: stakes 10,000 for 60 days (×1.25) → coefficient = 12,500

• User C: stakes 24,500 for 360 days (×5.00) → coefficient = 122,500

Total coefficient = 15,000 + 12,500 + 122,500 = 150,000

compensation shares

• User A: (15,000 / 150,000) × 80,000 = 8,000 $FAIR3

• User B: (12,500 / 150,000) × 80,000 = 6,666.67 $FAIR3

• User C: 8,000 $FAIR3 (capped from 65,333.33 $FAIR3)

The result: buying and staking $FAIR3 isn’t just buying a token — it’s like buying a decentralized on-chain insurance.

In addition, staking more $Fair3 means more than just higher coverage: it also grants governance rights. With over 5,000 $FAIR3 staked, users can vote, and with over 100,000 $FAIR3, users can submit compensation proposals. In other words, staking $Fair3 is essentially like purchasing an insurance policy — one that also gives the policyholder a say in the outcome of claims.

If it were only insurance, the Fair3 Fairness Foundation would at best serve as a “stop-loss tool” for users. Its true uniqueness lies in how the mechanism is inherently tied to buy-side logic:

• Holding equals protection: Users must stake $FAIR3 to qualify for compensation.

• The more you hold, the greater the protection: Larger stakes not only increase coverage but also grant proposal rights.

• Governance is bound to staking: 5,000 $FAIR3 are required to vote, while 100,000+ staked $FAIR3 are needed to submit proposals.

• Any suspicious account or bad actor will be excluded.

The true power of this mechanism lies in how it naturally creates a buy demand flywheel:

Insurance drives buying and staking → buying and staking increase market cap → higher market cap strengthens insurance capacity → stronger insurance capacity attracts more buying.

It’s not just users — projects are also brought into the flywheel.

The Foundation has launched a Fairness Margin Mechanism, allowing projects to proactively buy and stake Fair3 as a public commitment that they will not rug. If a project later rugs or its token collapses in value, this margin will be distributed to all holders of the affected token.

• For projects, it serves as a transparent credit guarantee.

• For users, projects that purchase a fairness margin provide added security and confidence.

• For Fair3, it means that in addition to buy-and-stake demand from users, project teams themselves become a major source of buy-side demand — further accelerating the flywheel effect.

Fair3 represents more than a “personal risk protection tool.” It is emerging as a system-level governance protocol that can be adopted by platforms, exchanges, and project teams alike.

As Fair3 CTO Wang Xin (founder of QVOD) noted in an interview:

“Fair3 is not a project built for short-term speculation. It aims to solve the long-standing lack of ‘public goods structures’ in crypto. That takes time to build, and real incidents to prove its value.”

Similarly, Anna Ann, founder of UnicornVerse and investor in Fair3, emphasized:

“Today, most projects and platforms try to bind users with incentives, but very few build structural trust flywheels from the perspective of insurance mechanisms. Fair3 shows us this possibility.”

The Fair3 Foundation mechanism demonstrates a new path:

• It transforms “fairness” from an idealistic slogan into visible, tangible compensation guarantees.

• It transforms “buying tokens” from speculative behavior into a long-term logic of buying insurance and participating in governance.

The greatest value of this system is not only compensating victims, but also using the flywheel effect to gradually accumulate a community of long-term holders.

In the uncertainty-filled world of crypto, this may be the most precious form of certainty.

FAIR3 now carries a fuller meaning: The FAIR3 Fairness Foundation — a living, breathing safety net for anyone who dares to build and believe in an open world.

Because fairness isn’t just a feature to be toggled on.

It’s the bedrock of everything we’re building next.

And together, we’ll make sure unfairness has nowhere left to hide.