FAQ

1. What's the main source of revenue of Reform?

As the core of the Reform ecosystem is the DAO Treasury doing market making. The main source of revenue is liquidity provision and designated market making. Extra income sources include Luigi_Bot and marketing services. The core contributors have over 5 years of experience running Market Making algorithms to make steady returns and to perfect them to adjust to market conditions. 65% of the Net Revenue is used to buyback $RFRM tokens.

2. How does Market Making work and why does it represent the core activity of the organization?

Market Making is in simple terms, providing liquidity to the market. The liquidity comes from setting buy and sell orders in a tight range, earning exchange fees, and making profits on small moves. It can be split in two, where the first is liquidity provision, providing liquidity to bigger tokens and designated market making, where Reform is the sole market maker. It is the core business of Reform because the Core Contributors have seen that in the overall market of DAOs, the treasuries get depleted and the token holders are the ones that pay for the expenses. With Market Making and Revenue, the operations costs can be paid. In addition, the global crypto market is still very illiquid and inefficient for bigger market participants. This is why we want to make Liquidity provision and designated market making accessible to all and make the crypto market more efficient.

3. How does the governance system work? And can the community submit a proposal?

The governance system works with $eRFRM, which holders can get when staking their tokens in the Single Side Staking pool (SSS). Staking is mandatory for governance to work. After staking holders can use their tokens to vote and make a proposal on the forum which then will be advanced towards the snapshot of RFRM.

4. Is there be staking? If so, would I still be eligible to vote?

Yes, there is staking. This is available in the staking section on the dashboard. The staking will be depleting the Staking Treasury and will take out 0.05% per day, meaning that the rewards will logarithmically go lower every day. The higher your stake the higher your staking rewards and the more voting power it brings.

5. Does the ecosystem revolve around buybacks? Will these tokens be burned?

65% of the Net Revenue will be allocated to repurchase $RFRM, which will then be transferred to the Bonding Treasury to replenish its supply. Swaps conducted by the Bonding Treasury will, in turn, generate additional liquidity for the DAO to invest in the liquidity provision. This process leads to an increase in revenue, creating a circular economy with continuously growing liquidity. Consequently, tokens will not be burned; instead, they will be utilized to buyback $RFRM and further boost liquidity.

6. What's the reason behind the buyback mechanism?

The reason behind the buyback mechanism is to get more tokens in the Bonding Treasury and garner more liquidity for the DAO. Providing liquidity for all and making the market more efficient.

7. Where/how can I peak at Research & Development works in progress?

These R&D works (funded by the Opex wallet) will be published on our socials when confirmed. Make sure to join the Discord to see weekly sneak peeks of what Reform is building.

8. Are the tokens of the Bonding Treasury swapped for a discount? And if so, what are the lock period and/or vesting periods?

Tokens held in the Bonding Treasury are sold at a discount ranging from 5% to 40%, depending on the lock-up period. The oracle, which connects to the prize of the liquidity pool and major exchanges, determines these discounted prices. The discounts are as follows: 5% for a 1-year lock-up, 10% for a 2-year lock-up, 17.5% for a 3-year lock-up, 27.5% for a 4-year lock-up, and 40% for a 5-year lock-up.