FOAF Foundation Tokenomics¶

The FOAF Foundation supports local trade and community resilience through a dual-token system designed for real-world utility, not speculation.

Token History and Legitimacy¶

FOAF tokens already exist! The FOAF contract was deployed to Ethereum mainnet in December 2018 at address 0x51300E946bcd4850Db3bE28D1FcC4076Ba4a9288. This 7-year development history provides regulatory legitimacy and demonstrates long-term commitment to the protocol vision.

We use two tokens: - FOAF – a fixed-supply governance and staking token (existing since 2018) - RHEO – a flexible-use utility token for transaction fees and trust-based trade settlement

This document outlines how both tokens support the GrowOperative app and broader FOAF marketplace — launching with a multi-location rollout beginning in Crawford Bay, BC (May 2026).

How It Works¶

GrowOperative helps people trade food, goods, and services — with or without cash. Listings are priced in local currency (e.g., $2 CAD per pound of tomatoes), and trades can settle in:

Cash (broadly defined) – via eTransfer, PayPal, Venmo, or in-person
Mutual Credit – ledger-based IOUs recorded in fiat value
RHEO – used for fees and optional value transfer

Users do not need to hold RHEO directly. Required fees flow through social trust chains, ultimately originating from FOAF holders who stake to generate RHEO. Each intermediary earns a small premium. This makes participation seamless and compensates liquidity providers.

Token Overview¶

FOAF Token¶

Contract: ERC-20 on Ethereum (deployed December 2018)
Address: 0x51300E946bcd4850Db3bE28D1FcC4076Ba4a9288
Purpose: Governance and staking
Supply: 25,000,000 (indivisible, fixed)
Current Status: 100% held by original creator, never distributed

Two-Tier Staking System:

vFOAF (Vote-Escrowed FOAF) - Simple Staking: - Stake FOAF → get vFOAF instantly, unstake anytime - Basic voting rights + standard RHEO generation - Target: New users, casual participants

rFOAF (Rooted FOAF) - Commitment Staking: - Time-lock FOAF for 6 months to 2+ years - Enhanced voting weight + higher RHEO generation + protocol revenue share - Target: Core community, long-term stakeholders

FOAF tokens are freely tradeable. Users can choose their commitment level through vFOAF (flexible) or rFOAF (time-locked with better rewards).

RHEO Token¶

Purpose: Required utility token for platform fees and optional settlement
Supply: Dynamic, managed by algorithmic treasury policy
Valuation: Floating; targeting ~$1 CAD reference rate for fee calculations
Generation: Created via FOAF staking at rate determined by DAO governance
Policy Management: Treasury uses formula-driven burns and airdrops to optimize network liquidity
Use:
Pay fees (transaction, markup, routing)
Flow through trust networks to enable access
Compensate intermediaries

Algorithmic RHEO Monetary Policy¶

Treasury as Central Bank: The 3M FOAF treasury stake generates substantial RHEO (~12,000 daily at full rFOAF) which enables active monetary policy management.

Policy Triggers¶

Expansionary (Airdrops): - High transaction volume but users running low on RHEO - New user onboarding waves requiring liquidity - RHEO price above target range (cool speculation) - Network congestion from RHEO scarcity

Contractionary (Burns): - RHEO velocity declining (hoarding detected) - Excess treasury RHEO from transaction fees - RHEO price below target range - Network health metrics indicate oversupply

Monthly Policy Formula¶

``` RHEO_Policy = f( rheo_velocity, transaction_volume_trend, average_user_balance, rheo_price_deviation, new_user_onboarding )

If expansion_signal > threshold: → Airdrop 0.5-2.0 RHEO per active user

If contraction_signal > threshold: → Burn 5-15% of monthly treasury RHEO generation ```

Benefits: - Self-stabilizing - automatically responds to network conditions - Transparent - formula is public and DAO-governed - User-friendly - maintains optimal liquidity without user intervention - Sustainable - prevents both scarcity crises and inflation

FOAF Allocation (25M Supply)¶

Purpose	Allocation	FOAF	Notes
Community Airdrops	32%	8,000,000	Distributed via custodial wallets for UX
Seed Rounds	40%	10,000,000	Seed 1: 5M, Seed 2: 5M (friends/family → international)
Team & Advisors	16%	4,000,000	Milestone-based vesting
Treasury & Operations	12%	3,000,000	Development, partnerships, governance

Distribution Strategy:

Phase 1 - Canadian Bootstrap (2026 Q1-Q2): - Friends & Family exemption: $50K-$150K - Use for personal runway + international incorporation costs

Phase 2 - International Launch (2026 Q3-Q4): - Dubai DIFC or Singapore incorporation - Global accredited investor sales - Regulatory-compliant token offering

Phase 3 - Community Distribution (2026-2027): - "Five FOAF" airdrops - each new user receives 5 vFOAF via custodial wallets - Base RHEO generation - 5 vFOAF generates ~0.15 RHEO monthly (light usage tier) - Treasury RHEO supplements - algorithmic airdrops provide additional RHEO as needed - Internal accounting until user withdrawal - no gas costs or blockchain complexity - Progressive decentralization UX - users learn at their own pace

Fees and RHEO Circulation¶

Transaction Fee: 3% of total trade value (paid by the seller or profit-maker)
Multi-Hop Routing Fee: 3% of intermediary markup
RHEO Routing Premium: 1% of RHEO passed per hop

Fee Routing Logic¶

Fees flow transparently through social trust chains
Each intermediary earns a 1% routing premium
The originating FOAF holder receives full RHEO value
The last party (end-user) accrues small, fair obligations across the chain

Why It Works¶

Accessible: No crypto experience required; fiat pricing and peer-based flow make it usable by anyone
Fair & Scalable: Fees match value created, not flat rates
Sustainable: Network rewards stakers and contributors
Decentralized: FOAF staking anchors the system; RHEO circulates on demand

Custodial Wallet Innovation¶

Capital Efficient Distribution: - Users receive vFOAF allocations in app-managed wallets - Internal accounting - no blockchain transactions until withdrawal - Eliminates gas funding costs ($200K+ saved vs direct airdrops) - Immediate governance + utility access, optional self-custody

User Experience: - Zero crypto knowledge required - Progressive decentralization - learn at your own pace - Withdraw to self-custody anytime

Multi-Chain Architecture¶

Ethereum: Original 2018 contract, treasury management, legitimacy Radix: Primary utility layer for staking, governance, RHEO operations Bridge: Official bridge to move FOAF between chains as needed

Road Ahead¶

2026 Q1-Q2: Friends & family bootstrap funding 2026 Q3: International entity setup (Dubai/Singapore) 2026 Q4: Global token offering + community airdrops 2027+: Full protocol launch on Radix with governance transition

Learn more in Fee Structure or DAO Transition.