# Protocol Token: FAN

## The `$FAN` Token

`$FAN` is the native utility token of the FanX Protocol. It serves as a core component of our ecosystem, designed to facilitate community-driven ownership and align the protocol's growth with its most active users.

## Protocol Buyback Mechanism

FanX has implemented a daily buyback mechanism funded directly from on-chain activity.

* Funding: 20% of all protocol earnings are allocated to the buyback program. If you need details about protocol earnings, please visit [protocol-earnings](protocol-earnings "mention") page.&#x20;
* Execution: These buybacks are conducted daily at a randomized time. This approach is intentionally designed to ensure fairness and prevent market participants from leveraging the timing of the transactions.
* Transparency: To maintain full transparency with our community, each completed buyback is announced on our official X and Discord channels.

## Genesis Event: Liquidity Rewards

* To bootstrap deep liquidity for the `$FAN` token from day one, we are introducing a special genesis event for liquidity providers.
* An additional 10% of the protocol's daily earnings are being distributed as rewards to users who supply liquidity to the `FAN`/`USDC` pool on the FanX DEX.
* Please note that this is an introductory event to incentivize early participation. The protocol reserves the right to conclude this rewards program at any time. While the event may end without prior notice, a formal announcement will be made across all official channels upon its conclusion.

## FAN Token Distribution&#x20;

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### Genesis (50%)

* Protocol Owned Liquidity&#x20;
* Early Contributors&#x20;
* Ecosystem Upgrade&#x20;

### Future Release (50%)&#x20;

* Development Fund
  * Purpose: To ensure the continuous development, security, and expansion of the FanX ecosystem. It will cover expenditures, including but not limited to:&#x20;
    * Core protocol development and maintenance
    * Infrastructure costs (servers, nodes, APIs, oracles)
    * Legal and compliance services
    * Smart contract audits and security bounties
  * Schedule: 24 months vesting&#x20;
* Community Incentives
  * Purpose: Dedicated to bootstrapping protocol activity and rewarding the active community members who contribute to its growth. These tokens will be strategically deployed to fuel various programs designed to enhance liquidity and user engagement.
  * Schedule: 18 months vesting&#x20;
* Reserves&#x20;
  * Purpose: Serves as a strategic reserve to ensure the long-term health, security, and adaptability of FanX. This fund provides the protocol with the flexibility to seize unforeseen opportunities and navigate changing market conditions.
  * Schedule: 18 months vesting&#x20;
* Advisory&#x20;
  * Purpose: Reserved for strategic advisors who provide critical guidance in areas such as DeFi architecture, security, go-to-market strategy, and governance. The vesting schedule is designed to align their contributions with the long-term success of the protocol.
  * Schedule: 6 months cliff and 18 months vesting&#x20;
* Team&#x20;
  * Purpose: Allocated to the founding and core contributors responsible for the architecture, engineering, and initial growth of the FanX Protocol. The long-term vesting schedule ensures the team is fully committed and incentivized to build enduring value for the ecosystem.
  * Schedule: 6 months cliff and 18 months vesting&#x20;



