When I first read about the structure of FT’s PUT-backed model, I couldn’t help share about how clever it evolves tokenomics.
One of my favourite tokenomics innovations is the milestones-based vesting/unlock schedule (since that’s where most holders worry about the dump). But this model completely flips the idea because it’s especially tailored for bear market choppy waters.
The 10c redemption floor embedded into each token incentivises coordinated holds or pump. Let me break it down a bit more, building on what Andre laid out here.
In a downturn, if the market price dips below that 10c floor, holders don’t need to race to exits at a loss because redemption at par is always an option. No more fire sales to erode liquidity or confidence. Instead, it nudges toward pumping the price back up via utility (like staking yields or protocol revenue share) to avoid triggering redemptions en masse, which in turn could contract supply and stabilize things organically. So you have a reinforced backstop: the collateral from any forfeited sales gets recycled to buyback tokens at floor to keep the ecosystem tight.
Flip to bull market, and it's even tighter. Since token value decouple upward on real revenue (e.g that 4% yield on raised capital translating to protocol fees), why redeem at 10c when sitting on 20c+ from organic growth? The model rewards long-term alignment without VCs-unlock overhang capped at 10B total supply and no team presale dump.
Andre's example nails it: Raise $100M? That's 1B tokens "circulating" with a notional $1B FDV, but true valuation is just $4M (at 4% yield) that scales as adoption grows.
There is no inflated multiples to defend, valuation is NAV-driven from day zero. There is also more optionality with the secondary PUT marketplace for trading redemption rights.
I’ve always lauded veTokenomics, but this is the first model I’ve seen prioritize survivor utility with pure capital efficiency, enough for me to back Buyback. I’m just curious what part of the protocol will drive the quickest revenue to test this in action and validate whether it becomes an industry standard. We have many category leaders in crypto already, it is the rare innovations in DeFi designs like this that changes the landscape for new protocols completely.
