⚙️ Tokenomics Whitepaper

1. Introduction to the FORTO Token

Token Name: FORTO
Token Standard: ERC-20 (Ethereum Blockchain) integrated with ERC-721 NFT Lottery Tickets
Maximum Supply: 100,000,000 FORTO (fixed cap)

Why a Fixed Cap?
A capped supply ensures sustained scarcity, helping preserve and potentially increase token value over time for all FORTO holders.

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2. Comprehensive Token Distribution & Vesting

¹ TGE = Token Generation Event (official token launch).
Note: The “Prize Pool” bucket listed here refers to tokens allocated on-chain for various on-platform incentives (e.g., staking rewards, DAO bounties) and is distinct from the “Prize Pool Funding” that comes from NFT ticket sales (described in Section 3).

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3. NFT Lottery Tickets & Economic Flow

Users must hold FORTO tokens to mint NFT Lottery Tickets:

Cost per NFT Lottery Ticket: 100 FORTO

When a user mints one “Lifetime Lottery Ticket” NFT for 100 FORTO, the revenue is split as follows (all on-chain via transparent, audited smart contracts):

• Prize Pool Funding (60 FORTO): Directly tops up the on-chain prize pool that powers every draw.
• Operations & Marketing (35 FORTO): Covers platform maintenance, development, audits, and promotional activities.
• Community & Ecosystem (4 FORTO): Funds airdrops, bounties, partnerships, and other community initiatives.
• Burn (1 FORTO): Permanently removes FORTO from circulation, steadily increasing scarcity.

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4. Proprietary Prize Distribution & Draw Schedule

4.1. FORTO FairDraw Protocol™ (Three Tiers)

Every draw’s total prize pool (collected from NFT ticket sales) is divided into three tiers:

Mega Tier (50% of Draw Pool)

• Exactly 1 winner per draw.
• Mega Prize = 0.50 × (draw’s pool)

Mid Tier (25% of Draw Pool)

• Multiple winners, chosen after the Mega winner.
• Total Mid-pool = 0.25 × (draw’s pool)
• Each Mid winner’s prize is engineered to be 4× each Micro winner’s amount.

Micro Tier (25% of Draw Pool)

• Multiple winners, chosen last.
• Total Micro-pool = 0.25 × (draw’s pool)
• Distributes smaller prizes to a broad base.

Key Rule: After the single Mega winner is selected, up to 42 % of all participants (rounded down) win in Mid + Micro combined. Within that 42 %, the on-chain algorithm assigns 1/5 of “secondary winners” to Mid and 4/5 to Micro—ensuring each Mid prize = 4 × each Micro prize.

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4.2. Lottery Draw Eligibility & Schedule

Each NFT Lottery Ticket is automatically entered into three consecutive draws:

• Month 1 (M1)
• Month 2 (M2)
• Month 3 (M3)

Future Roadmap: Up to seven draws per ticket across a five-year span, all following the same three-tier logic.

Overall Prize Pool Funding:

• Exactly 60 % of total NFT ticket sale revenue is allocated on-chain to the cumulative prize pool.
• With three draws, the total pool is evenly split: each draw receives 20 % of ticket sale revenue (so that 3 × 20 % = 60 %).

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4.3. Dynamic “Winner-Count” Algorithm

Let:

• NNN = number of NFT tickets entered in a given draw.
• Pool = total FORTO allocated to that draw (e.g., if 1,000 tickets sold, total revenue = 100,000 FORTO → prize pool = 60,000 FORTO → each of the three draws gets 20,000 FORTO).

Step 1. Mega Winner (1)

• Always 1 Mega winner.
• Mega Prize = 0.50 × Pool.

Step 2. Compute Maximum Secondary Winners

• Wmax = [0.42 x N]
• If Wmax < 1, set Wmax = 1 (So there is at least one Mid/Micro winner)

Step 3. Split Wmax⁡​ into Mid vs. Micro

• Assign 1/5 of Wmax to Mid winners:
  Wmid = Wmax ÷ 5

• Assign the rest to Micro winners:
  Wmicro = Wmax - Wmid

• Edge Cases (when 1 ≤ Wmax < 5):

  • Force Wmid = 1
  • Wmicro = Wmax - 1
  • If Wmax = 1, that single winner receives both Mid + Micro pools (i.e., they collect 50 % of the draw).

Step 4. Compute Per-Winner Prizes

• Mid Prize per Winner
  Pmid = (0.25 × Pool) ÷ Wmid

• Micro Prize per Winner
  Pmicro = (0.25 × Pool) ÷ Wmicro

• Because Wmicro / Wmid ≈ 4, each Mid Prize is ≈ 4× each Micro Prize.

Step 5. Extreme Low-Participation Adjustments

• N = 1: That single ticket wins Mega (50 %), Mid (25 %), and Micro (25 %) → 100 % of Pool.

• N = 2:

  • One ticket is Mega (50 %).
  • The other ticket collects both Mid (25 %) + Micro (25 %) = 50 %.
  • Total 100 % paid.

Step 6. High-Participation Behavior

• As N increases, Wmax = [0.42 N] scales linearly.

• Wmid = Wmax ÷ 5

• Wmicro = [0.42 N - Wmid]

• Each new draw pays 100 % of Pool:

  • 50 % Mega
  • 25 % Mid
  • 25 % Micro
  • with many winners receiving small but significant prizes.

On-Chain Guarantee:
Every draw distributes exactly 100 % of its allocated pool (50 % to a single Mega winner; 25 % split among Mid winners; 25 % split among Micro winners), regardless of how many participants show up.

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5. Deflation, Referral & Staking Mechanisms

5.1. Deflationary Burn

1 FORTO from each 100 FORTO ticket mint is permanently burned.

This reduces circulating supply over time, adding deflationary pressure.

5.2. Referral Program

Users earn 0.5 % of any new participant’s ticket cost (100 FORTO × 0.005 = 0.5 FORTO) for every successful referral, incentivizing organic growth.

5.3. Staking & Yield Rewards

Unused FORTO tokens can be staked in a dedicated pool to earn APY.

Staking rewards come from the Community & Ecosystem bucket, reinforcing long-term holder incentives.

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6. Governance & Utility

6.1. Decentralized Autonomous Organization (DAO)

FORTO holders govern key parameters (e.g., prize percentages, tier ratios, future draw expansions).

On-chain proposals and voting ensure community-driven evolution.

6.2. Treasury Management

Tokens in the Team & Advisors, Marketing & Community, and Treasury & Partnerships buckets are DAO-governed.

Funds support strategic partnerships, ecosystem grants, and continuous platform development.

6.3. Secondary NFT Market

NFT Lottery Tickets are ERC-721 tokens and can be traded freely.

When an NFT changes hands, its remaining draw eligibility and any unclaimed prizes transfer to the new owner.

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7. Security & Integrity Measures

7.1. Smart Contract Auditing

All FORTO contracts undergo rigorous audits by CertiK and Quantstamp.

Formal verification methods are used to eliminate logic vulnerabilities.

A continuous bug-bounty program incentivizes community reporting of any issues.

7.2. On-Chain Transparency & Risk Mitigation

Chainlink VRF provides verifiable randomness for all draws.

Multi-signature wallets secure treasury and operational funds to prevent unauthorized access.

Real-time monitoring and alerts detect suspicious on-chain behavior.

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8. Extensibility, Roadmap & Future Innovation

Immediate Roadmap (Next 6–12 Months)

• Token Generation Event (TGE) and listing on leading DEX/CEX venues.
• Launch NFT Lottery Marketplace (minting, trading, and management interfaces).
• Initial Prize Draws: Month 1 and Month 2 completed on time.
• Boost Liquidity Pools: Expand FORTO trading pairs to major exchanges.

Medium-Term Goals (12–24 Months)

• Staking & Yield Platform: Dedicated UI/UX for staking FORTO.
• Layer-2 Integrations: Deploy on Optimism and Arbitrum to reduce gas fees and improve throughput.
• Strategic Partnerships:
  • NFT gaming platforms
  • Metaverse integrations
  • Cross-chain bridges

Long-Term Vision (2+ Years)

• DAO-driven Multi-Chain Expansion: Launch FORTO on Polygon, Avalanche, Binance Smart Chain.
• Enhanced NFT Utility:
  • Exclusive real-world event access
  • Collaborations with major IP holders
  • Metaverse mini-games using FORTO tickets
• Continuous FairDraw Protocol™ Improvement:
  • Layer-2 random-ness optimizations
  • New proprietary fairness enhancements
  • R&D collaborations with cryptographic researchers

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9. Revised Example Illustration (Three-Tier Logic – M1, M2, M3)

Below are two hypothetical scenarios—one with very low participation and one with high participation—demonstrating how winners are chosen under the new three-tier model.

Scenario A: Very Low Participation (N = 3 Tickets)

• Total NFT Tickets Sold: 3
• Ticket Cost: 100 FORTO each → Total Revenue = 300 FORTO
• Prize Pool Funding (60 % of sales): 300 × 0.60 = 180 FORTO
• Draws: Three equal draws → each draw’s Pool = 180 ÷ 3 = 60 FORTO

Draw M1 (Pool = 60 FORTO)

1. Mega Winner (1)

• Prize = 0.50 × 60 = 30 FORTO

2. Compute Secondary Winners

• Wmax = 0.42 × 3 = 1.26 = 1.
• Since Wmax < 5,
  • Wmid = 1 (forced),
  • W micro = 0.
• That one secondary winner collects both Mid + Micro pools.

3. Mid Pool = 0.25 × 60 = 15 FORTO
Micro Pool = 0.25 × 60 = 15 FORTO

• Single secondary winner receives 15 + 15 = 30 FORTO.

Summary (N = 3):

Odds:

• Mega: 1/3 ≈ 33.3 %
• Secondary (Mid + Micro): 1/3 ≈ 33.3 %
• One ticket wins nothing (~ 33.3 %)

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Scenario B: High Participation (N = 10,000 Tickets)

• Total NFT Tickets Sold: 10,000
• Total Revenue: 10,000 × 100 FORTO = 1,000,000 FORTO
• Prize Pool (60 % of sales): 1,000,000 × 0.60 = 600,000 FORTO
• Per Draw Allocation: 600,000 ÷ 3 = 200,000 FORTO per draw

Draw M1 (Pool = 200,000 FORTO)

• Mega Winner (1)
  Prize = 0.50 × 200,000 = 100,000 FORTO

2. Compute Secondary Winners

• Wmax = ⌊0.42 × 10,000⌋ = ⌊4,200⌋ = 4,200
• Wmid = ⌊4,200 ÷ 5⌋ = 840
• Wmicro = 4,200 - 840 = 3,360

3. Mid Tier (840 winners)
Mid Pool = 0.25 × 200,000 = 50,000 FORTO

• Each Mid winner = 50,000 ÷ 840 = 59.52 FORTO (~ 60 FORTO)

4. Micro Tier (3,360 winners)
Micro Pool = 0.25 × 200,000 = 50,000 FORTO

• Each Micro winner = 50,000 ÷ 3,360 = 14.88 FORTO (~ 15 FORTO)

5. Summary (N = 10,000):

• Odds (approx.):
  • Mega: 1/10,000 = 0.01 %
  • Mid: 840/10,000 = 8.4 % (≈ 1 in 12)
  • Micro: 3,360/10,000 = 33.6 % (≈ 1 in 3)
  • Total winning ≥ 1 prize: 4,201/10,000 ≈ 42.01 %

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5. Deflation, Referral & Staking Mechanisms

5.1. Deflationary Burn

1 FORTO from the 100 FORTO mint fee is burned per NFT minted, continuously decreasing supply.

5.2. Referral Program

Earn 0.5 FORTO (0.5 %) for each new user who mints an NFT ticket via your referral link.

5.3. Staking & Yield

Stake unused FORTO to earn APY, paid from the Community & Ecosystem bucket, rewarding long-term holders.

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6. Governance & Utility

6.1. Decentralized Autonomous Organization (DAO)

FORTO holders govern protocol parameters via on-chain proposals and votes (e.g., prize percentages, draw expansions).

6.2. Treasury Management

Team & Advisors, Marketing & Community, and Treasury & Partnerships tokens are DAO-controlled, funding ecosystem growth and initiatives.

6.3. Secondary NFT Market

NFT Lottery Tickets are ERC-721 and can be traded on marketplaces.

New owners inherit all remaining draw entries and any unclaimed prizes for the ticket.

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7. Security & Integrity Measures

7.1. Smart Contract Audits

All FORTO contracts are audited by CertiK and Quantstamp.

Formal verification and continuous monitoring minimize vulnerabilities.

Active bug bounty programs encourage community testing and reporting.

7.2. On-Chain Transparency & Risk Mitigation

Chainlink VRF ensures verifiable randomness for draws.

Multi-signature wallets secure treasury and operational funds, preventing single-point failures.

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8. Extensibility, Roadmap & Future Innovation

Immediate Roadmap (Next 6–12 Months)

• Token Generation Event (TGE) & initial listings on top DEX/CEX platforms.
• Launch NFT Lottery Marketplace (minting, trading endpoints).
• First Draws Completed (Month 1, Month 2).
• Expand Liquidity Pools on additional exchanges.

Medium-Term Goals (12–24 Months)

• Dedicated Staking & Yield Portal for FORTO.
• Layer-2 Deployment (Optimism, Arbitrum) to lower gas fees.
• Key Partnerships with major NFT/Gaming ecosystems; metaverse engagements.

Long-Term Vision (2+ Years)

• DAO-driven Multi-Chain Expansion:
  FORTO on Polygon, Avalanche, Binance Smart Chain.

• Enhanced NFT Utility:
  Event access, exclusive collaborations, metaverse mini-games.

• FairDraw Protocol™ R&D:
  New random-ness enhancements, privacy-preserving draws (zk-proofs), and academic collaborations.

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9. Compliance & Regulatory Assurance

FORTO proactively monitors and adapts to global crypto regulations.

Robust KYC/AML procedures are mandatory before minting any NFT ticket.

We reserve the right to restrict or refuse participation from jurisdictions where crypto lotteries are prohibited.

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10. Conclusion & Value Proposition

FORTO Tokenomics combines scarcity, fairness, and community governance:
✅ Deflationary & Scarce: 100 M fixed supply + burn on mint.
✅ Community-Driven: DAO voting empowers holders.
✅ Transparent & Secure: Audits, VRF, multi-sig.
✅ FairDraw Protocol™: Ensures unpredictable, tamper-proof draws.
✅ Adaptive & Future-Proof: Scales to any participation level, with a clear roadmap for multi-chain growth.

FORTO elevates the traditional lottery model with decentralized innovation—rewarding participants, empowering communities, and ensuring transparency at every step.

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11. Pre-Sale / Market Launch Economics

• Initial Market Cap: 1,000,000 USD (for presale).
• Total Tokens: 100,000,000 FORTO.
• Price per Token: 0.01 USD.
• Initial Liquidity: 50,000 USD (liquidity pool seed).

FORTO: Your Gateway to Transparent, Secure, and Rewarding Crypto Experiences.