FXH Token

fxhash’s $FXH protocol empowers artists to tokenize their brands, fostering a sustainable, community-driven onchain art economy.

A New Onchain Art Economy

Over the past few years, the NFT art market has seen meteoric rises and troubling declines, leaving many to question the sustainability of current models. Collectors are disengaging, liquidity is increasingly concentrated in the hands of a few, and the broader ecosystem of artists struggles to thrive.

As a platform dedicated to empowering generative artists, fxhash has not only witnessed this decline but also felt a responsibility to address it. We recognize that artists are much more than the sum of their individual projects; they are innovators, storytellers, and creators of culture whose impact transcends individual releases.

At fxhash we not only want to provide the tools to enable these creative visions, but also provide artists with a stable eco-system in which they can take creative risks.

Introducing the $FXH protocol: an artist-first protocol designed to empower creators by tokenizing their brands, and provide collectors with a new way to engage with the eco-system. The implementation of this vision will take shape through the $FXH ↔ $ARTIST token launchpad, through which artists can seamlessly create and launch their own tokens.

We hope that this lays the foundations for a new community-owned, onchain art economy.

$FXH Protocol

$FXH is an ERC20 token on the Base L2 chain. It serves as the foundation for a no-code launchpad where artists can create and launch their own $ARTIST tokens (also on Base). $ARTIST tokens are a new way for artists to build their own economy, engage collectors in novel ways, and foster a sustainable community around their work.

Both $FXH and different $ARTIST tokens will enable artists and collectors to shape and own the fxhash protocol—In the long-term, $FXH is aimed at decentralizing governance over fxhash through a DAO.

Leveraging $FXH instead of ETH directly for this system comes with the following advantages:

1. A self-contained, stable, and controlled ecosystem: constraining activity to $FXH creates a more predictable market/environment.

2. Ecosystem Growth: as liquidity providers on the main ETH↔$FXH pool, a portion of trading fees is routed back to fxhash.

3. Tailored Features: this model allows fxhash to develop new features tailored around $FXH and ${Artist} tokens.

Token Launchpad

The Token Launchpad is the mechanism by which artists create and release their own tokens in a transparent and controlled manner.

✅ Who can release their own $ARTIST token? Launching $ARTIST tokens will be open and accessible to all artists on fxhash in Q1 2025. Creating your own $ARTIST token is fully opt-in.

Launchpad access will be limited for an initial period of time, during which the launchpad contracts will require validation from the fxhash team. This is to ensure that:

• Artists are not rushing the release of their token, and consider all implications. We don’t want artists to succumb to FOMO.

• We battle test the entire process. Before fully opening up the protocol, we need to make sure everything works end-to-end, and that the deployment flow is well refined.

1

Preparations & Deployment

The launchpad is designed to guide artists through planning and launching their token, offering insights into tokenomics, best practices, and the impact of launch choices. $ARTIST tokens can only be launched once, which makes it crucial that artists align their token with their long-term artistic vision before proceeding.

To launch a token, artists need to configure key details through the launchpad:

• Token Ticker (e.g., $ARTIST, $CIPHRD, etc.)

• Token Name, Description, and Icon

At the end of this step the token is deployed on-chain and enters its bonding curve phase.

2

Bonding Curve Launch

${artist} tokens are launched through a bonding curve. This is to ensure that collectors and investors are protected during the token launch by providing a predictable price tied to supply.

A bonding curve is a gradual, smooth curve that describes a relationship between a token's price and its total supply: as more tokens are bought, the price of each token gradually increases. Conversely, when tokens are sold, the price decreases.

This creates an automatic pricing mechanism that's determined by the token's supply and demand—the price is thus always known and not subject to market fluctuations. A bonding curve protects investors in that they can always sell on the curve, and at the same time early adopters are reward as the token’s value increases with growing demand.

During the bonding curve launch, $ARTIST tokens are exclusively trade-able through the bonding curve.

3

Token Graduation

Once the bonding curve reaches its limit (the supply cap target is reached) the associated $ARTIST token “graduates”, meaning that it becomes tradeable on exchanges. The initial pool of $FXH that was used by investors to purchase $ARTIST tokens on the curve, is locked in a liquidity pool, ensuring that the token starts with liquidity.

This liquidity pool becomes the primary exchange vehicle for swapping between $FXH and $ARTIST. Token trades on this primary liquidity pool are subject to a 1% trading fee, which is shared between the artist (75%) and fxhash (25%). This fee is paid in the $ARTIST token.

Other actors can also set up their own liquidity pools to trade $ARTIST tokens. For instance a liquidity pool between ETH and a particular $ARTIST token can be set up.

Artist/Collector Incentives

$ARTIST tokens essentially act as a bridge between the artist and their collector-base, unlocking powerful artist ↔ collector dynamics, with innovative ways to engage with each other.

The obvious direct way in this setting, is that collectors can invest in an artist’s token as a means to pledge their support and belief in an artist's creative vision. The token provides the artist with a sustainable income stream that’s decoupled from the immediate success or failure of any single release—a portion of fees from ongoing trading activity continuously supports the artist’s work. This approach enables artists to experiment freely, without the constant pressure of financial uncertainty.

Vice-versa, collectors also gain deeper involvement and direct participation in an artist’s long-term success.

Naturally artists can reward their collectors by leveraging the artist token in different creative ways. The obvious one, for instance, is that the artist can reserve allow list slots for token holders. But there are more avenues that artist tokens can open up to, such as interesting social dynamics that are only possible through blockchain based provenance, for example:

• Private messaging boards that the artist can post to, such that only token holders with X amount balance can view the messages or leave comments, in a Web3 patreon-like manner facilitated by fxhash

• Exclusive voting rights on the direction or certain aspects of future projects

But the door is wide open for experimentation here. We are excited to see how this will unfold and in what novel ways artists will chose to leverage their tokens.

Roadmap

The roadmap for the coming weeks at a glance:

1. $FXH token airdrop. More details about token distribution, individual allocations and airdrop claim page in the next section. $FXH will be locked and not tradeable on exchanges for this initial period of time.

2. First artist token launch + $FXH unlocks for trading on exchanges. This is meant to test the artist token launchpad and refine it further.

3. Launchpad becomes available to all artists.

We're aiming for Q1 2025 for all of the above.

Long-Term

• DAO Governance: Transfer control of fxhash to the community.

• Scalable Protocol: Expand artist and collector engagement with innovative dynamics.

• Ecosystem Growth: Onboard new artists, collectors, and crypto investors to fuel the generative art market.

Token Distribution

A total supply of 1bn $FXH will be distributed in the following manner to ensure fair participation in the protocol:

• Team & Investors (30%) (1 year cliff, 3 year vest):

  • Team (20%)

  • Investors (10%)

• Airdrop (40%):

  • Retrospective Airdrop (32%)

  • Aligned Communities (8%)

• Liquidity (8%)

• Ecosystem Treasury (22%)

Airdrop Allocation

40% of the total $FXH supply is allocated to the community, and will be distributed in form of an airdrop.

This allocation is meant as a reward to the community that has helped shape fxhash into the platform that it is today. In this manner the $FXH token is distributed to those who are most aligned with the protocol's success. Individual allocations are proportional to participants previous activity on fxhash, computed based on a variety of metrics:

• Volume spent on the platform.

• Earnings as artists or collectors.

• The variety of works collected (the number of different artists that a collection spans)

• Consistent monthly activity since launch.

You can check your allocation and claim your airdrop here:

$FXH - powering a new art ↔ token economy — fxhash

Part of the airdrop is also reserved to other aligned communities, to which we'll distribute a portion in the future.

Vision & Goals

While concerns about tokenizing artist brands are valid, this initiative offers an exciting opportunity to reimagine the NFT art space. By prioritizing creators and their communities, fxhash aims to restore balance and promote sustainable growth. This approach empowers artists to explore new ideas without constant financial pressure while giving collectors a deeper, more meaningful way to support and engage with the art they love. Together, we have the chance to reshape this space into one where creativity and collaboration thrive.

This isn’t a perfect solution, but it’s a bold step toward building something better. The $FXH protocol is about reviving the spirit that fxhash was built on—a space where artists can take risks, collectors can connect on a deeper level, and the community as a whole can flourish. By addressing the challenges head-on, we hope to create a foundation for lasting growth and a renewed sense of purpose in onchain art.