FCL Token Incentive Model

As shown on the previous page, 46.2% of the token supply is reserved for rewarding users for enabling Fractal Protocol to capture users' browser data (e.g. Block Rewards) and store it on their devices. See Figure 1. However, as of May 2022, we have announced an updated incentive model which better aligns with our 2022 strategy and fosters the growth of the Fractal ecosystem.

Figure 1. The initial FCL token incentive model.

With our updated incentive model we aim to incentivize users to sign up for Fractal ID (KYC), developers to build with our technology, community members to actively share the word about what we’re building, and ensuring holders of FCL are rewarded via a staking program. See Figure 2.

Figure 2. The updated FCL token incentive model.

In a nutshell, the token allocation for Block Rewards will be routed into a development account and an incentivization account controlled by Fractal and will be allocated in four ways:

• Browser data capture: users enabling browser data capture (5%).

• KYC incentives: users completing the highest Fractal KYC level (50%).

• Development funds: developers collaborating with Fractal’s team in hackathons or development events optimizing our code. (15%)

• Staking program: token holders believing in our long term growth. (30%)

In the future, we will also be introducing out-of-band incentives to community members who contribute to Fractal’s growth by referring friends and spreading the word.