# TheFNN white paper By [theFNN](https://paragraph.com/@thefnn) · 2022-04-02 --- Prologue -------- `When giveaways aren’t really giving you anything` `When all pngs become art` `When lucky dogs think they are oracles` It is time to do something right. There are good NFT projects, but there are even more bad projects. We believe the value of NFT projects lies in the community. We cannot make your NFTs become valuable again, but we can rebuild a stronger community and redistribute the value back to the members. > theFNN wants to create value for the NFT community, not to extract it. The logic --------- **100%** of the value of an NFT project comes from the community. The more attractive the community is, the more the people want to join, the less the people want to leave. And hence the price of the NFT rise. As we are connecting a brunch of NFT victims, TheFNN is not a community that people want to join if we are just issuing another NFT (Who wants an NFT that tells everyone you are stupid). Therefore, we are building our community by providing a well-articulated tokenomics executed by an experienced team. Before we understand how TheFNN works, let’s think about why a strong community is worth anything. We can quantify the value of a community into the following formula: `Influencing Power X Purchasing Power = Community Value` Influencing Power can be further broken down into `Reach X Viral Factor`; while Purchase Power is simple, how much the members can spend. The higher the Community Value is, the more the exclusive experience the community can provide to its members. Furthermore, it forms a positive feedback loop, and more people want to join, higher Influencing Power and Purchasing Power. So, TheFNN proposed an innovative NFT staking program to connect people who have purchased at least 1 NFT. The staking program provides an incentive for people to join the community. Unlike NFT, which has low liquidity, all community members will be rewarded with FNNC (ERC20 FNN Coin), the value of FNNC will be supported by TheFNN ecosystem, and TheFNN team will provide liquidity of FNNC on DEX. ![](https://storage.googleapis.com/papyrus_images/d03ec74b65abcf332b96b8f27461a549d5fb309033da3620923427dce38d978f.png) The roadmap ----------- The development of the FNNC ecosystem will be in 3 phases. ![](https://storage.googleapis.com/papyrus_images/a7a52e846e2fabc2108b5516d70622818aa17575e2c409fb6532fb2b059af52b.png) **Phase 1, the preparation stage** TheFNN staking will be unattractive at first look; it has low value, low liquidity, and low popularity. However, this happened to all the greatest community-driven cryptocurrencies like DOGE, SHIB, which in the end provide 400,000X return to their initial supporters. FNNC is a 100% fair launch token, no presale or pre-mint. The only way to acquire FNNC is to stake any ERC721 / ERC1155 token into the staking contract. We treat all NFTs equally; each staked NFT shares the same amount of FNNC reward. We can expect people will only stake worthless NFT, and this is what we suggest our members do. Stake worthless NFTs to mine FNNC. The FNNC we mined from staking will be worth little initially, but the value of the coin will increase as we grow our network. Moreover, the utility of FNNC will be unlocked when the number of staking NFT increases. Just like all cryptocurrencies, early believers will always win. All you need to do is stake worthless NFT and tell others that they can also do this. In case you are not very familiar with how staking works, these are what you need to know before staking. If you join theFNN at the preparation stage: Maximum loss: 1. Lose all your worthless NFT ~ $0 2. Gas fee ~ $10-$50 Potential return: 1. OG title of a network with tens of thousands of members 2. A good amount of FNNC for free 3. Other OG privilege **Phase 2, the expansion stage** Once we have 1,000 staking members in our community, the value of the community will be more or less equal to a small NFT project. And we can start our expansion stage. At this stage, we will focus on improving the liquidity and the utility of the FNNC. 1. Formation of DAO TheFNN DAO will be governed by a governance token (FVOTE), while FVOTE can only be acquired thought burning FNNC. The burning process is irreversible, and FVOTE is untransferable. It serves one and only one purpose, voting in the DAO. So in order to have more voting power, FNNC is required. Moreover, the demand for FVOTE will consume FNNC. 2. Liquidity mining A Liquidity mining pool of FNNC/USD will be set up to reward our liquidity provider. This increases the liquidity of FNNC and makes sure it is ready for the upcoming stage when FNNC is going to take more members. 3. The first application - Hall of Shame Scammers can never really getaway. The Hall of Shame will remember. The Hall of Shame is a "writing wall" on blockchain that last forever; our community members can spend FNNC to write the name on that wall. 4. theFNN GEM theFNN GEM is a memorial token for all theFNN OG members; it is an ERC721 token that can only be minted using FNNC. The utility of this NFT will be developed in the next phase, including staking and blockchain gaming. **Phase 3, the explosion stage** At this stage, we have accumulated enough credibility and community value. Therefore, it is time to launch a greater plan that serves our long-term goal. We need a sustainable business model and a fair and transparent profit-sharing system. The profit-sharing token - FSHARE TheFNN is a community project. The first thing we need to ensure is that all the value created by our community will go back to our community. SHARE will be a profit-sharing token that can be purchased by all community members with FNNC. SHARE holders can share all profit generated from theFNN ecosystem. 1. theFNN identity theFNN identity is an NFT with attributes like name, class, race, and abilities. Each NFT represents a character in the ecosystem. Characters can have their own weapons, armor, and props; members can create, buy and sell props using the FNNC. 2. theFNN GME staking Starting from this stage, members can stake GME to receive airdrops from theFNN. theFNN GME will also grant our members VIP access to partnered projects. 3. NFT auction platform NFT / Crypto projects would like to promote their product and services to our members as the community grows. We can foresee that our community will receive airdrops from those projects. All the airdropped NFT/ Crypto will be sold in FNNC through our NFT auction platform. 50% of the income will be burnt, and 50% will be distributed to SHARE holders. 4. Community advertising service If other projects cannot do airdrop, they can still advertise their services/products by paying our community FNNC to place an advertisement or broadcast a message. This income will be split into 2 parts, half-burnt, half distributed to SHARE holders. 5. Bluechip NFT fund With enough purchasing power in our community, we can set up a bluechip NFT fund and co-own Bluechip NFT like BAYC, CryptoPunks, Cool cats, and Azuki together and share all the profits among SHARE holders. Once we reach phase 3, theFNN will be unstoppable. Staking NFT - The Proof of Crypto Presence ------------------------------------------ People often ask us why staking worthless NFT can create value? Let us think of Bitcoin. Why is Bitcoin, mined through meaningless hashes, can be worth more than VISA? The meaningless hash is just the consensus mechanism that proves Bitcoin is mined transparently and all the transactions are correctly recorded. What defines the value of Bitcoin is the Bitcoin community. Like mining Bitcoin, staking itself does not create any value, instead, it serves as a consensus mechanism on how FNNC is created. Unlike Bitcoin, theFNN needs a consensus mechanism that can prove all our participants are crypto users. That is why we required staking any NFT in order to mine FNNC. We call it the Proof of Crypto Presence. To answer the question, staking NFT does not create values. Nevertheless, the Proof of Crypto Presence is the consensus mechanism for our community to make sure FNNC was created fairly and transparently. Only the community creates value, and the value can be reflected in the price of FNNC, FVOTE, FSHARE. TheFNN tokenomics - The Three Pillars ------------------------------------- In theFNN ecosystem, we have three different tokens. * The utility token - **FNNC** * The profit-sharing token - **FSAHRE** * The governance token - **FVOTE** FNNC is the only utility token in theFNN ecosystem. All services provided by theFNN will be taking FNNC only. It is 100% fair launch; it can only be mined through staking NFT to the NFT mining pool. FNNC is the tokenized value of theFNN community. FSAHRE is the profit-sharing token that allows holders to claim 50% of the revenue from theFNN in FNNC (the other 50% will be burnt). This provides passive income to our community members. A read DAO should be an organization for the members, by the members, of the members. FVOTE is the governance token; each FVOTE represents 1 vote in the DAO. FVOTE can only be minted by burning FNNC. Moreover, FVOTE is not tradable and has no investment value. We can only use FVOTE to vote and propose ideas to the community. **How to mine FNNC** There is only one way to mine FNNC by staking any ERC721/ERC1155 on theFNN. All staked NFT will be treated equally regardless of the price. We have designed a set of rules to defend ourselves from malicious attacks like creating numerous new ERC721 and staking them on theFNN. Our contract will include a blocklist mechanism, and there is only a limited number of NFTs can be staked from the same collection (contract address). The blocklist mechanism should be enough for phase 1, and we will add more precautions when needed. In order to maximize the return of staking, we suggest our members stake only worthless NFTs at the earliest possible as the staking pool accepts any ERC721 and ERC1155 tokens. There will be 5,000 FNNC per block shared by all staking NFTs. The earlier you stake, the more FNNC you can receive with less competition. Also, we suggest that members transfer all your valuable NFT to another wallet to prevent your main wallet from being compromised due to frequent operations. **How to mint FVOTE** Starting from phase 2, members can mint FVOTE by burning FNNC. 1 FVOTE token can be minted by burning 1 FNNC. The minting is irreversible; all minted FVOTE will not be able to change back to FNNC. And for the stability of TheFNN DAO, FVOTE is not transferable. They are pure governance tokens, and we do not encourage speculation. With that being said, each community member should hold at least 1 FVOTE. **How to invest in FSAHRE** A tokenomics cannot work without a good economic incentive. That’s why we created the FSAHRE (economic token). 50% of the revenue of FNNC will be given back to all FSAHRE holders (the other 50% will be burnt). There will be 100,000,000 FNNS in total. 1,000,000 (1%) will be pre-minted for marketing and development purposes. The rest will be sold in 3 stages: 1. During the first stage: 33,000,000 FNNS (33%) will be sold at a fixed cost of 100 FNNC per 1 FSAHRE 2. During the second stage: 33,000,000 FNNS (33%) will be auctioned in FNNC. 3. During the third stage: 33,000,000 FNNS (33%) will be rewarded to the community for free base on their participation. To conclude, TheFNN is trying to build a community by connecting all NFT token holders and monetizing the community value in the form of FNNC. All FNNC will be generated by staking NFTs only, and we create the demand for FNNC by providing marketing services to other projects, auctioning for airdropped NFT, providing Defi service, buying the FVOTE governance token, and buying the FSAHRE economic token. Community Business Development ------------------------------ Most of the business development will happen in the 2nd and the 3rd phase. They are all listed in the roadmap. The major business of theFNN will be NFT/Crypto marketing and metaverse investment. As our community grows, we can do a lot more than what we have written in the roadmap, and we are sure our community can generate fascinating business ideas. TheFNN DAO will fund the best ideas and work with them. To encourage our community members to implement their business idea with theFNN. All staking members can purpose any idea within our discord for emoji voting. We will select the top 10 ideas from discord quarterly and vote in our DAO. The selected one will receive funding from our community fund; they will also have our community support. The return generated from the investment will be divided into three parts. 30% will be used to buy back FNNC, 30% will be distributed directly to FSHARE holders, and the last 40% will be reserved as community funding to invest in more projects from our community. The DAO ------- The official setup of theFNN DAO will be in phase 2. But the initial DAO will be set up in discord inside the board member channel. And for an important decision, we will use emoji votes in discord. Once we have reached 1000 stakers, we will start minting the FVOTE token and have an official DAO running on blockchain. A lot of projects claimed they have a DAO, but most of them didn't talk about how the DAO works. Fortunately, this is not the case for theFNN. The rules of theFNN DAO are as follow. **The formation of the board** * The top 10 FVOTE holders will be selected as board automatically (holding board members) * 4 founding team members (founding board members) * 10 community members selected from the discord emoji vote (community board member) * the community board members' vote will be held annually, with no term limit **Community proposal** * Anyone with at least 1,000 FVOTE can propose ideas. Each proposal requires burning a certain amount of FNNC * Proposed ideas will be discussed in the board channel. The board will decide if the idea is valid for community voting * If the community does not agree with the decision of the board, a discord emoji vote will be initiated * If the proposed ideas are valid for community voting, they will be voted through the smart contract with FVOTE The Defi + Gamefi ----------------- Defi is the core engine of theFNN. We connect the worthless NFT holders to create a community and then tokenize the community value using FNNC, and the Defi engine is that part that keeps FNNC circulating within our ecosystem. theFNN Defi mainly consists of two parts: 1. NFT staking 2. Liquidity mining In phase 2, theFNN will launch FNNC/ETH pool for all members to stake and earn more FNNC. At the same time, FSAHRE/FNNC pool will be launched in phase 3. As our ecosystem grows, more trading pairs will be added. TheFNN Gamefi will be a blockchain Role-Playing Game. Members with theFNN identity can play a role in theFNN ecosystem. Unlike other blockchain games, theFNN game will be closely related to the real world. Props from the game can be redeemed in the real world and a lot more. But this will happen after we finish all the tasks in the roadmap. We will publish a detailed plan on Gamefi during phase 3. Join our discord if you want to be part of us! > [https://discord.com/invite/Nw727KWNxm](https://discord.com/invite/Nw727KWNxm) --- *Originally published on [theFNN](https://paragraph.com/@thefnn/thefnn-white-paper)*