🪙FIRN Token

FIRN Token lets community members share in Firn Protocol's revenue.

FIRN Token is a fairly-launched, value-bearing token, which allows its holders to share in the revenue of Firn. To own FIRN Token—and earn fees, denominated in ETH—you don’t need to use Firn, the protocol; rather, you must simply acquire FIRN Token, and passively hold the tokens in your wallet. FIRN Token can be seen on Etherscan here. You can trade us on Uniswap V3 here.

Firn's protocol fees will accrue automatically and passively to whichever addresses hold FIRN Token; there is no need to "claim" fees or pay gas.

Let’s get into the technical details. When Firn users withdraw funds, they pay a small fee—currently set at 0.79%—of the ETH value of each withdrawal. This fee is programmatically—that is, on-chain—distributed proportionally to holders of FIRN Token. The proportion of FIRN Token you own corresponds to the proportion of Firn’s fee flow you receive. Technically speaking, Firn’s withdrawal fees actually accrue in a pool, where they reside until they are flushed, or, essentially paid out and distributed to FIRN holders. The payout process is a global operation, which can be kicked off—permissionlessly—by anyone. When anyone empties the fee pool, everyone gets paid. Only the person who triggers the global payout pays the gas. Thus, in practice, normal users do not need to worry about flushing the pool, or paying gas fees for it, and will simply receive funds passively. Here is an example of what a payout operation looks like on-chain.

Firn’s UI exposes a panel dedicated to FIRN Token. To see this panel, first log in in the usual way; then, click the rightwards-facing arrow on the top right of the main panel, under the text FIRN Token. You should see something like this:

If you want, you can, at any time, click the Claim Fees button, to initiate a global flush of the fee pool. Alternatively, you can also do this through Etherscan directly, by calling the Payout method on the pool contract.

Importantly, when you receive payouts, the relevant denominator is not the total supply of FIRN — which is fixed at 1,000,000 — but the circulating supply, which I will now explain. Certain caches of FIRN are exempted from receiving fees. This includes the FIRN held within the Uniswap V3 pool, as well as the firn.eth multisig, which holds a large, inactive cache of FIRN. After subtracting these two accounts, we see that the circulating supply is around 76,762 FIRN units.

For example, let’s say someone withdraws 100 ETH from Firn Protocol. They will pay a fee of 0.79 ETH on that withdrawal. That 0.79 ETH will instantly flow into the fee pool contract (where it will add to whatever balance is already present in that contract, if any). Let’s say you own 1% of the circulating supply (so, specifically, 768 FIRN). When the flush happens, you will be directly paid 1% of the fee pool’s ETH balance (at the time of the flush). In our example, you will earn 0.0079 ETH from that withdrawal.

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