How the GORJS token works, and what you can do with it
Within a total supply of 100,000,000 GORJS tokens, the ownership breakdown comprises the following:
GORJS Community members include 2 groups: NFT holders and creators. For NFT holders, GORJS tokens are generated through a yield-bearing mechanism tied to the GORJS FKWME Pass as well as the upcoming artist NFTs developed within GORJS. FKWME Passes generate a greater daily yield than NFTs developed by DAO-participating creators. GORJS seeks to reward early participants of the DAO by granting FKWME Pass holders a greater voice in the DAO’s early life stages. FKWME Pass holders who participated in the NFT’s primary sale will receive an initial token allocation of 400 tokens per pass upon mint (equally distributed across holders) in addition to 4 tokens yielded daily per FKWME Pass held; holders who purchased the NFT on the secondary market (e.g., on Opensea, etc.) will not participate in this initial allocation but will receive the daily yield.
GORJS tokens are not an investment. They confer no monetary or economic benefits and under no circumstances are tokens able to be exchanged for any L’Oreal equities, securities, or currency. GORJS tokens are exclusively used for DAO governance, owned in part by the NYX Professional Makeup brand.
Within DAO governance cases, tokens can be used for the following purposes:
- 1.Voting on artist submissions
- 2.Reserving allowlist spots for the minting of participating creators’ NFTs
The tokens used in the creator proposal approval process and allowlist bidding process are re-circulated to the total supply and not destroyed or burned. If a GORJS holder votes for a project that is not approved, the corresponding quantity of tokens will no longer be locked based on their vote commitment. Similarly, if a voter allocates more tokens to the staking process besides those already multiplied and does not receive an allowlist spot, these tokens will be returned to the holder.
The staking process pulls tokens from the Treasury—namely, tokens outside of the circulating supply—to position voters with a multiplied quantity of tokens, rewarding them for voting early on a proposal. Ultimately, the total supply of GORJS tokens remains constant at 100,000,000, eliminating potential implications of liquidity in the future. As GORJS hopes to establish a self-sustaining infrastructure for creative expression to be guided by the general public, “burning” or destroying tokens would possibly limit the ability for future continuous distribution to NFT holders over the DAO’s lifespan.
Token transfer and trading will not be available at the launch of the DAO. We want to incentivize token ownership through active participation in the DAO instead of incentivizing price speculation and financial gain through token ownership. For those who want DAO participation, we believe owning FKWME Passes and artist NFTs are great ways to generate passive tokens without the risk of price volatility in the short term. We recognize, however, that trading is beneficial when considering the perspective of those (e.g., holders as well as non-FKWME Pass and non-artist NFT holders) who want to own tokens for DAO participation, purchase off the public market, and give liquidity to holders in the long run. To this end, the Founding Team will actively monitor and allow the transfer and trading of tokens based on metrics that exhibit the level of decentralization (e.g., unique ownership, widespread adoption metrics, and active participation in the DAO mechanisms). The Founding Team will assess these metrics after one year of the DAO’s existence to explore the possibility of allowing token trading.