Benefits of Holding $FAIR

Holding $FAIR tokens offers multiple advantages, both financial and participatory:

• Financial Rewards and Yield: By holding $FAIR tokens, members earn monthly rewards in ETH from the membership fees paid by new members. This passive income stream is directly linked to the growth of the community and the capital pool's overall performance. The potential for appreciation in the token value further incentivizes holding $FAIR as the capital pool grows.

• Flexibility and Liquidity: $FAIR tokens provide liquidity through both direct redemption for ETH and secondary market trading. This dual liquidity mechanism ensures that members have multiple options for accessing their funds, depending on market conditions and capital pool health.

• Governance Participation: As a holder of $FAIR tokens, members gain voting rights within the Fairside ecosystem. This democratic governance model ensures that all members have a voice in key decisions, aligning the platform’s development with the community’s best interests. Voting can cover a range of topics, from adjusting coverage levels and membership fees to modifying the capital pool management strategies and selecting security partners.

• Aligned Incentives with the Capital Pools Health: The value of $FAIR tokens is directly tied to the capital pool's stability and performance. This alignment ensures that all participants are motivated to support the capital pool's growth and health, creating a cooperative ecosystem where everyone benefits from collective success.

• Community Tribute for Long-Term Holders: A 3.5% community tribute is collected on all user withdrawals from the capital pool. This tribute is converted into $FAIR tokens and held in a reserve, which is then distributed exclusively to long-term holders. This mechanism rewards loyalty and encourages members to stay invested, further stabilizing the capital pool and promoting sustainable growth.

By combining these elements, $FAIR tokens serve as both a practical tool for maintaining liquidity and a means of fostering active participation in the Fairside ecosystem. They are designed to provide tangible benefits to holders, ensuring that all members are aligned with the platform’s long-term success.