The FAAS Token

Overview

The FAAS token is the native utility and governance asset of the FaaSFi protocol. Unlike standard governance tokens that rely on "one token, one vote" systems, FAAS is designed to function within a Futarchy framework. It serves as the economic collateral that aligns the incentives of traders, corporate hedgers, and protocol governors.

Token Utility

1. Governance Collateral (Futarchy) In the FaaSFi ecosystem, governance is not determined by popularity contests but by market conviction. To propose a change to the protocol, a user must stake FAAS tokens. If the market predicts the proposal will reduce the value of the protocol, the proposer risks losing their stake. This prevents spam and aligns proposals with long term value creation.

2. Insurance Backstopping (Staking) Corporate clients require assurance that FaaSFi can pay out claims even in extreme volatility.

• The Safety Module: FAAS holders can stake their tokens into the FaaSFi Safety Module.

• First Loss Capital: In the unlikely event that the underlying liquidity venues (Polymarket/Kalshi) fail or an oracle dispute delays settlement, the Safety Module acts as a liquidity buffer to ensure immediate corporate payouts.

• Reward: In exchange for taking this risk, stakers receive a portion of the premiums collected from OBCD (Oracle Bonded Corporate Derivatives) sales.

3. Fee Discounts Institutional clients holding a specified threshold of FAAS tokens receive discounts on the "Management Fee" charged when minting large insurance policies.

Deflationary Mechanics (Burns)

FaaSFi implements a "Buyback and Burn" mechanism inspired by the MakerDAO and MetaDAO models.

• Arbitrage Profits: When the FaaSFi Smart Router captures arbitrage between Kalshi and Polymarket (e.g., buying at $0.60 and selling at $0.65), 50% of this profit is sent to the Treasury.

• Execution: The Smart Contract autonomously purchases FAAS tokens from the open market (DEX) and sends them to a burn address. This creates constant buy pressure correlated with protocol volume, regardless of token speculation.