♻️The Ecosystem

Reform - Full ecosystem

The Reform DAO ecosystem operates on a fully circulating model, where all net revenue generated by Reform’s services is reinvested directly into the RFRM token and growing the DAO Treasury. This continuous circulation fuels a self-sustaining cycle, positioning the treasury for sustainable growth. Central to this model is the Bonding Treasury, a decentralized fundraising mechanism from which Reform deploys two algorithms dedicated to liquidity provision and project market making.

The Bonding Treasury serves as a vital tool for raising capital for the DAO. Initially funded by the DAO at TGE, the treasury is replenished through net revenue-driven buybacks of $RFRM. Accessible via the Dashboard, the Bonding Treasury allows participants to purchase tokens with lock periods ranging from 1 to 5 years, at discounts of up to 40% off the market price. Once purchased, the capital raised flows into the DAO treasury, allowing Reform to support its liquidity provision, project market making, and arbitrage initiatives. With tokens locked for longer periods, this approach also reduces circulating supply, amplifying scarcity as Reform’s Net Revenue base grows over time.

Upon entering the DAO treasury, funds are directed towards liquidity provision on major exchanges. Reform earns both volume-based rebates and realized profits from these activities. Rebates accumulated from generated trading volumes are treated as revenue, subsequently utilized for net revenue calculations, while realized profits are reinvested to replenish the treasury. Additionally, Reform’s algorithms engage in arbitrage across exchanges, with the resulting profits cycling back into the treasury to support continued growth.

The second core service offered by Reform is project market making, where Reform acts as the designated market maker for new project launches. Two options are available for projects: the retainer model and the loan option model. Under the retainer model, Reform receives a monthly fee, considered revenue, which will be used for net revenue calcuations. The loan option model, which typically lasts 6 to 12 months, allows Reform to retain any additional stablecoins or tokens generated, with stablecoins considered as revenue. Any remaining tokens (assets, e.g., $RFRM) from this model are added to the DAO treasury, providing lifetime liquidity for those pairs and contributing to the growth of the DAO treasury, generating a win-win situation.

In summary, every service Reform offers is designed to generate revenue. This revenue covers operational costs, with the resulting net revenue used for buybacks and to grow the DAO treasury. As the treasury grows by bonding sales and loan option tokens generated, so too does Reform’s capacity to earn greater rebates with liquidity provision and thus Net Revenue and conduct more buybacks, creating a sustainable, compounding growth cycle. This model establishes an ever-growing ecosystem in which the treasury’s growth directly fuels additional buybacks, reinforcing the value of the ecosystem over time.

The Net Revenue generated by Reform DAO is calculated on a quarterly basis and included in the quarterly reports. Once calculated, the Net Revenue is sent to a designated revenue wallet. From there, the funds are allocated toward essential purposes, including buybacks and DAO treasury growth. The details of the Net Revenue wallet can be accessed through the following address: RFRM: NR wallet.

Revenue = income from all sources (liquidity provision, DMM, marketing services, and Luigi_bot) minus costs; this gives Net Revenue.