Fromo Docs

How FROMO Works

2 min read

FROMO operates through a unique gamified liquidity mechanism that ensures fair pricing for rare NFTs while creating an engaging experience for all participants.

The Core Process

  1. NFT Suppliers bid for game slots and stake their NFTs to start a FROMO game
  2. Players mint keys to participate in the game, contributing liquidity and earning rewards
  3. The Liquidity Mechanism ensures NFTs can be redeemed from the reserve pool at 110% of the final game price using $OMO tokens
  4. At the end of every game, key holders can convert their keys to newly emitted $OMO tokens

Key Price Mechanics

FROMO uses a progressive price curve that balances accessibility with value:

  • Key price for new FROMO games gradually increases as the total number of minted keys grows
  • Within a single FROMO game, the key price remains constant
  • This creates both predictability within games and a growing value proposition across the platform

Fee Distribution Structure

When players mint keys in a FROMO game, the fees are distributed as follows (Testnet):

  • 20% of key minting fees are rewarded to existing key minters
  • 20% of key minting fees go to the final key minter
  • 50% to the NFT staker/provider
  • 10% to protocol and liquidity providers

Note: These percentages are subject to change as the platform evolves

The Flywheel Effect

FROMO creates a powerful reinforcing cycle:

  1. As demand for rare NFT liquidity grows, more players participate in FROMO games
  2. Increased participation raises the value of both NFTs and $OMO tokens
  3. Higher token values attract more NFT suppliers to stake their assets
  4. More staked NFTs create more games and opportunities
  5. The cycle continues, creating a sustainable ecosystem for non-fungible liquidity

This “flywheel effect” provides lasting assurance for NFT creators to build for uniqueness rather than fungibility.

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