White Paper
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Last updated
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Version 0.0.1
October 2020
Version 0.0.2
April 2021
Fanance Club is a Revolutionary Sports Player's DEX powered by the Cardano blockchain where users can trade digital assets or celebrity stocks that represent real-life performance statistics. It is a decentralized social gaming/trading experience in which people can express their passion for sports/their favourite players, compete against each other, and show “How much your craze for your favourite players is worth ''.
In a nutshell, Fanance Club is a Decentralized Blockchain-based fantasy sports trading platform to trade your favourite sports player tokens. This enables fans all over the world to invest in their favourite sports players and get returns based on their sports knowledge.
Fanance Club provides users with a new way to use their sports knowledge or their craze towards their favourite for their joy and benefit. We envision a massive opportunity to gather fanatics in a revolutionary platform where they can not only socially interact but also compete against each other in a transparent and decentralized way.
Built on the blockchain, Fanance Club platform is not controlled by an individual organization. There is no single agent with the power to modify the rules of the software, the economics of the assets, or prevent others from accessing the platform. Each digital asset is permanently owned by the community and lies in a blockchain-based digital registry, giving the owner full control over it.
The current problem is that many people are scared/hesitant to invest in the stock/crypto market due to a lack of knowledge about the market and the stocks they are willing to invest in. A lot of analysis and research about the company or the project is required before starting to gain returns from stock in the stock or crypto market.
Fanance Club solves this problem as everyone has a lot of knowledge about sports and their favourite players. This enables them to make use of their existing sports knowledge, invest in their favourite sports players and gain returns based on their performance, which drives their demand, and prediction.
Moreover, since Blockchain enables decentralized trading and investment, geographic barriers are eliminated and anyone from any part of the world will be able to invest in these tokens. Also, in the long-term, the platform can be extended to other celebrities apart from sports as well.
Decentralized, blockchain-based protocols are poised to tear down the exclusionary, monolithic foundations of traditional finance, radically reconfigure how money is used, created, and distributed, and build a superior, more transparent, and equitable financial system.
At Fanance Club, we believe that crypto is the future of finance but has our interests perfectly aligned with the cypherpunk ethos. Blockchain-based digital assets are designed for transparency, ease of access and provide users complete control over their funds, which is the same as what Fanance Club is trying to do with Fantasy Sports Stars Trading, Staking, Liquidity Pool, NFTs, Prediction Markets, etc.
Our team of industry experts, who have vast expertise in blockchain and crypto space, are convinced that cryptocurrencies provide significant advantages in terms of Transparency, Liquidity and fair reward distribution compared to outdated centralized solutions. As a forward-looking De-FinTech startup, we are looking to integrate these solutions into our platform and place our company at the forefront of the Web 3.0 revolution.
The first Obvious Reason is that the whole team is a staunch follower, believer and fan of Cardano Ecosystem!!
Cardano’s mission, vision, and approach to building scalable, user-centric blockchain solutions are perfectly aligned with Fanance Club’s Vision as well. Cardano is the first blockchain platform to evolve out of a scientific philosophy and a research-first-driven approach. First-generation blockchains like Bitcoin were the first to offer the world decentralized ledgers for secure cryptocurrency transfers. However, they did not create a functional environment for developing more complex smart-contract-based financial solutions. Second-generation blockchains like Ethereum introduced smart-contracting capabilities to blockchains but are unfortunately suffering from significant scalability issues.
On the other hand, Cardano is conceived as a more evolved, future-proof third generation blockchain that combines the former’s properties and evolves to meet all its users’ arising needs. Consequently, the Fanance Club team believes that Cardano will play a leading role in the upcoming digital revolution. Thus, deciding to build our decentralized platform on Cardano was hardly a difficult choice at all.
Decentralized Trading platforms traditionally follow two main protocols in order to provide a market price: an order book or an AMM. These two systems come with their own sets of issues but to summarize:
An order book model works best on centralized exchanges such as Coinbase and Binance. These exchanges typically have a small set of tokens listed with high market caps that, by nature, have high volume and little spread. On these exchanges, millions of dollars are needed to move the needle in any one direction. The problem arises when a user wants to trade a lower liquidity pair. Coins listed on centralized exchanges with low MCs have one very important issue: that market makers do not see a reason to provide liquidity. As a result, even a few thousand dollars can send prices soaring, or taking a turn in the other direction.
AMMs work well on DEXs for the simple reason that the vast majority of tokens listed on the exchange are very low liquidity. Uniswap, as an example, has over 36,000 trading pairs listed. AMMs solve this problem of low liquidity by using a composite constant function which can be simplified as such
Cleverly named after the Babel Fish from The Hitchhiker’s Guide to the Galaxy, IOHK has come out with a concept that would allow users to pay transaction fees using the native token. Native assets on Cardano work as such: tokens are created and treated natively in the ledger with ADA. Instead of using the traditional UTXO (unspent transaction output) model presented by, (among many others), Bitcoin, Cardano’s ledger has adopted the EUTXO (extended unspent transaction output) model which provides the foundations for Plutus. Utilizing this method we can have multiple different tokens (including NFTs) in a single transaction.
An issue with utilizing this protocol is that transaction fees would be paid to SPOs (stake pool operators) and if a token is underutilized it will contribute to slow network speeds. Therefore, a simple fix would be to implement a system in which these tokens in question would quickly swap to ADA before completing the original transaction. This would give SPOs a purpose in helping process these described transactions.
In 2017 the first-ever AMM was launched, Bancor. Bancor pools started with an ERC20 token (examples would be BNB, LINK, UNI) and their native token BNT. The Bancor Network effectively utilized the creation of their token by placing it in the forefront of any LP on their network, requiring BNT in every pool. It can be modelled as such
Balancer was launched a few years after Bancor in May of 2020. It utilized a generalized concept of constant-product function to support multiple assets in a single pool.
This allows creating an LP with any number of assets/tokens, instead of previously only limiting pools to two assets. This provides an incentive to liquidity providers to add more liquidity to lower volume tokens. It should be noted other DEXs use roughly the same constant-product invariant.
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The Fanance Club’s Flagship product is the Fanance Club dApp - a Decentralized Exchange (DEX) for celebrity or Sports Player's stocks, where economic incentives for users to trade in the platform are connected to speculating real-life Performance, Staking Rewards, Liquidity Provider Rewards and Special benefits to NFT holders.
Leveraging our team’s experience in the Blockchain (Especially in Cardano) and Crypto Space, Fanance Club is a crypto-economic based on the trading of virtual/fantasy assets that would represent real-life statistical performance and the career of your favourite sports players
It's a unique combination of
⚽ Sports
🏏 Trading (DEX)
⚾ DeFi
🏀 NFT
🎾 Prediction Market
Post Token Sales, the basic prerequisites to use our platform is to possess FANC – Fanance Club’s native token. This can be through pre-sales, in Fanance club platform or Listed on DEX’s and CEX’s once listed post-pre-sales.
Once you have FANC tokens, you can utilize the token in multiple ways as per the above flow diagram.
Use case & utilities:
🏏 Buy & Sell Players Token
🎾 Stake FANC-ADA LP and farm FANC tokens with lucrative APYs. Also get a % of the transaction fee
🏀 Initial Star offering Purchase
⚾ Stake PLAYER - FANC LP and farm PLAYER tokens with lucrative APYs. Also get a % of the translation fee
🏏 Buy/Sell Player’s NFT
🏀 Participate in Prediction Markets
⚽ Governance & voting
Liquidity Pool for ADA-FANC pair will be created in and by Fanance Club dApp. One way to effectively hold your FANC is to add liquidity to the ADA-FANC pool and stake your LP token.
Staking ADA-FANC LP token will farm FANC with lucrative APY with conscious design such that the early supporters will be incentivized heavily. On top of that, a % of the transaction fee of the whole platform (transaction from FANC Transaction, Staking fee, Transaction on trading all players) will be shared with ADA FANC LP Stakers.
More details of transaction fee and APY will be explained below in FANC Tokenomics and Fees Section
As you can see from the above flow diagram, another, perhaps the major, utilization of FANC tokens is to BUY & SELL your favourite Sports player’s token.
7.3.1 Initial Star offering (ISO)
When a Player’s token gets launched in the Platform, the token will go through ISO (Initial Star Offerings) for a specific time period with a predefined price. The price of ISO of a player will be determined by factors like Players Historical performance data and fame. The denomination of players' token will be FANC, E.g. 1 Virat Kholi (FC-VRK) = 2 FANC or Lionel Messi (FC-MSI) = 4 FANC.
Once the ISO Sale is closed, 1.15( Additional 15 %) times an equivalent amount of Player’s Token (Plus NFT Sale, which will be explained in NFT Section) will be minted. Post-ISO, out of an additional 15%, 10% of Minted players tokens will be airdropped to ISO purchasers proportionate to their contribution to overall ISO. Out of an additional 15%, the remaining 5 % will be held by Platform treasury for promotion, legal and reserve purposes. A Liquidity pool (PLAYER-FANC) will be created with remaining (Actual raised by ISO and NFT)
E.g. If Lionel Messi (FC-MSI) token is launched in ISO with a price of 1 FANC/FC-MSI and say 300,000 tokens have been sold in ISO. Also say NFT of Messi has been purchased for 50,000 FANC (Will explain it in detail in NFT Section). Now 300,000 + 50,000 = 350,000 X1.15 times = 402,500 FC-MSI tokens will be minted (Additional 15% of 350,000 = 52,500 tokens).
Now, 10 % of ISO sale = 10% of 300,000 = 30,000 FC-MSI token will be airdropped to ISO purchasers proportionately. If you had bought 30,000 tokens out of 300,000, you had contributed 10% of ISO purchase and hence you will be airdropped 10% of 30,000 = 3000 FC-MSI Tokens.
10% of NFT purchase (10% of 50,000) = 5000 FC-MSI tokens will be airdropped to the NFT owner.
The remaining tokens will be held by the platform treasury for promotion, legal and reserve purposes.
7.3.2 Stake PLAYER –FANC LP Token:
An optional feature is that you can provide liquidity to a particular PLAYER-FANC pool and can stake the LP token.
Staking PLAYER-FANC LP token will farm Respective Player’s token with lucrative APY with conscious design such that the early supporters will be incentivized heavily.
On top of that, a % of the transaction fee of that particular player trading will be shared to respective PLAYER- FANC LP Stakers.
More details of transaction fee and APY will be explained below in the Players Tokenomics and Fees Section
7.3.3 BUY or SELL Player’s Token:
Now to the most interesting part of the platform!!
Now that the Liquidity pool for a Player is launched, you can BUY, SELL or HODL the player’s token.
The trading liquidity will be provided in a decentralized manner via AMM - Auto Market Maker (Explained above in AMM Section).
The Market price of the player will be purely determined by the Supply and demand in the market.
The Performance of the player can influence the user to buy/sell via an incentive mechanism (which will be explained in Player Tokenomics Section)
The Basics of Trading is an age-old simple logic of BUY LOW – SELL HIGH to make profits
For every player market launch, an NFT of the player will be minted. During the Same ISO time Window, respective NFT will also be launched with a base price in FANC and is open for bidding auction. When the ISO window closes, the auction bidding also gets closed and the highest bidder will become the owner of that Player’s NFT.
Once the Bidding closes, the Winner will be given a specified time to transfer the bid FANC and the ownership will automatically be transferred via smart contract. If the winner fails to do the transaction within a defined time, the next highest bidder will be considered.
These NFTs can also be sold to another party via Fanance club platform or other 3rd party NFT marketplace
The NFT Owner enjoys the benefit of the Players transaction fee and Player’s APY until he possesses ownership of the NFT.
More details of transaction fee and APY will be explained below in the Players Tokenomics and Fees Section
In the later stage, a Prediction market confined to Sports matches will be launched. The outcome has 3 possibilities - A team will be the winner, a Loser or the game tied. Users can bet on which team will win or it's going to be a tie and bet their FANC
Based on the outcome the users who bet on the actual outcome will be rewarded with 90% of Pool’s FANC token and the users who bet on the outcome that doesn’t happen lose their FANC.
The 90% of the pool’s FANC Token will be distributed proportionately to the % contribution user made to the total winning outcome. Out of the remaining 10%, 5% will be burned and 5% will be added to the platform treasury.
E.g. If there is a Cricket match between Australia Vs India.
Say, Users bet a total of 1000 FANC bets on India Winning; Other sets of users bet a total of 2000 FANC on Australia winning; Another set of users bet a total of 500 FANC on the match to be tied.
Let’s say that the outcome is – INDIA WON
Now the total pool size is 2500 FANC Out of which 5% = 125 FANC will be burned; another 5% = 125 FANC will be transferred to the platform treasury. The remaining 2250 FANC will be distributed proportionately to users who bet on India. Now say you bet 100 FANC which is 10% of the overall bet on India. Hence you will receive 10% of 2250 = 225 FANC
In this phase, the governance will play crucial role wherein critical decisions like player’s launch, new sports/ market launch, token burning, minting, fees etc will be decided by the community via voting
FANC is the deflationary token by nature with the total Maximum supply upon the Fanance club platform’s launch will be hard-capped to 500,000,000 FANC tokens and the minimum supply via burning mechanism will be capped to 100,000,000 FANC
To ensure a fair initial token distribution, the token distribution process will be guided by two principles: optimal decentralization and efficient distribution.
In this context, optimal decentralization means that:
The tokens are distributed to as many FANC users as possible, with the number of token holders growing proportionally to the project’s rise in market capitalization
There are no significant price discrepancies to acquire the tokens
The biggest token holders do not hold significant portions of the total token supply, limiting their power to influence the markets
An efficient initial distribution implies a distribution of tokens primarily to:
Users deeply involved with the project that willingly contribute to its success
Participants from different backgrounds, including investors, early supporters, small token holders, and speculators
To maximize incentives to early adopters/supporters via token mining and its farming APYs
30% of the Maximum Supply = 150,000,000 FANC tokens will be minted and distributed over the span of 8 years.
These tokens would be distributed to ADA-FANC LP stakers proportionate to the % contribution. Thus Early Supporters (fewer in numbers) will be incentivized heavily with very lucrative APY%. As more and more users start to Stake ADA-FANC LP token, the APY gets stabilized.
The first wave of FANC tokens released after the token sale will be available for trading directly in the Fanance Club’s dApp. The only available trading pair during the token sale will be FANC/ADA
After the token sale ends, Fanance Club will partner up with other crypto exchanges to ensure more trading pairs against FANC tokens are made available. Finally, with its own ERC-20 converter and BSC Bridge, we will introduce wrapped ERC-20 FANC and BEP-20 tokens (wFANC) on the Ethereum and Binance Smart chain network to allow users to trade their tokens on decentralized exchanges like Uniswap, pancake Swap, etc.
As mentioned in Section “Initial Star offering”, the initial number of tokens launched in the liquidity pool will be decided based on ISO purchase and NFT Purchase
Post that, based on the player’s performance, a proprietary scoring system (will be shared once the test net is launched) will be calculated for each player and the basis that tokens will be minted.
Please note that there is no maximum cap for a player's token but at the same time the supply is not infinite. It’s purely based on the player's career longevity and performance. A player can be in prime form for many years or only for a few matches.
Just to give an example, Say for Cricket, different scoring systems will be made for ODIs, Test matches and T20s. Scoring will be given to exhaustive factors like if he is in playing 11, man of the match, runs scored, strike rate, wickets taken, bowlers economy, dismissals like catches, runouts, etc.
As mentioned in Section ``Staking Player –FANC LP Token”, users have an optional feature to provide liquidity to a particular PLAYER-FANC pool and can stake the LP token.
Also as mentioned in Section “Player NFT”, the NFT owner of a particular player will enjoy the benefit of getting the player’s tokens APY
The above said minted tokens will be distributed to PLAYER-FANC LP stakers and NFT Owner as below
Let’s say, based on the Player’s performance, 40,000 tokens are minted for a month. Out of 40,000, 10 % = 4000 tokens will be transferred to the NFT owner. The remaining 90% will be proportionately distributed to LP Stakers taking a snapshot on daily closing (GMT) if you have staked in LP during the day closing you will be counted for that day. Say if you had staked for 5 days, 1 % of Overall pool for 4 days and 2% of the overall pool for 1 day. You will be rewarded 72 Player tokens for the month (90% of 40,000 = 36,000; if the month has 30 days, then 1200 tokens per day; 1% for 4 days is 12x4 =48 and 2% for 1 day is 24x1 = 24; so you will be rewarded total of 72 tokens)
The Payout of APY will be monthly.
We believe that this will influence the users to BUY/HODL players with great future career potential thus leveraging your sports knowledge to earn more tokens (Money) or make more profits
Fanance Club will operate with a fee structure of 0.5% for the transaction. We should also take into account network tx fees, which are significantly lower on Cardano than, for example, Ethereum, which is notorious at the moment for the high fee structure.
This fee of 0.5% will be distributed as follows:
For FANC Transactions (Buy/Sell FANC, Stake & Unstake FANC-ADA LP):
50% will be burned
40% for ADA-FANC LP token stakers
10% for the platform
For Player’s Transactions (Buy/Sell PLAYERS, Stake & Unstake PLAYER_FANC LP):
50% will be burned
10% for ADA-FANC LP token stakers
20% for PLAYER-FANC LP token stakers (only for that particular player’s transaction)
10% for Player’s NFT owner (only for that particular player’s transaction)
10% for the platform
DISTRIBUTION
FANC TXs
PLAYERS TXs
PREDICTION MARKET
BURNING
50%
50%
5%
FANC LP STAKERS
40%
10%
-
PLAYER LP STAKERS
-
20%
-
NFT OWNERS
-
10%
-
PLATFORM TREASURY
10%
10%
5%
PREDICTION MARKET WINNERS
-
-
90%
TOTAL
100%
100%
100%
FANC is a deflationary token with a burning Mechanism as follows
50% of every transaction fee will be burned
5% of the Prediction markets pool will be burned
The Burning mechanism will be in place until the minimum supply reaches 100,000,000
