The Ecosystem
Last updated
Last updated
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 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 Net Revenue, subsequently utilized for buybacks and operational expenses, 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 Net Revenue, which will be used for buybacks and operational expenses. The loan option model, typically lasting 6 to 12 months, Reform retains any additional stablecoins or tokens generated, where stablecoins are seen as Net Revenue. Any remaining tokens (assets E.G. $RFRM) from this model are added to the DAO treasury. Providing lifetime liquidity provision for those pairs and growing the DAO treasury, generating a win win situation.
In summary, every service Reform offers is structured to generate Net Revenue, which is then used for token 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 distributed on a weekly basis to the DAO’s designated revenue wallet. From there, the funds are allocated for essential purposes, including buybacks, operations, and R&D. The details of the Net Revenue wallet can be accessed through the following address: RFRM: NR wallet.
Net Revenue refers to the rebates from liquidity provision and net profit from designated market making, as well as all net profits generated from other income sources, which will be used for buybacks and operations.