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Fake World Assets switches to 80% fee buybacks after token selloff

FWA’s external token buys open Aug. 4 at 3 pm ET, while the 15-day emissions program ends today, after the token fell to $0.0083.

Reported · Written up by our desk · Market Structure

TokenWorks, the two-person team behind NFT gacha protocol Fake World Assets (FWA), said it will route 80% of future protocol fees to FWA token buybacks, committing 327 ETH, about $610,000, to buy the token for a team reserve, according to The Defiant.

The reversal came after holders learned the team’s earlier plan for FWA’s trading debut directed none of the roughly $3.2 million earned during the protocol’s two-week launch to buybacks, triggering a selloff that pushed the token to a record low. On Tuesday, FWA traded at $0.0083, down 43% over 24 hours, and it was 78% below its July 26 peak of $0.03856, with market capitalization at about $8 million.

The dispute centers on how protocol revenue should flow to token holders, a recurring flashpoint in token launches. It also coincides with changes to incentives as FWA’s 15-day emissions program, which distributed 30% of the token supply to users, ends today, the same day external buys open at 3 pm ET.

The Defiant also noted that Fake World Assets relaunched July 20 and uses Chainlink’s verifiable random function to settle randomized NFT draws, with winners keeping the NFT or selling it back for most of its backing. Over the past 30 days, the protocol generated $8.8 million in fees and holds $5 million in total value locked, per DefiLlama.

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