DAO Structure
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The FTHM token serves as the primary utility token within the Fathom DAO. It is used for both governance and staking purposes, enabling holders to participate actively in the protocol's decisions. The distribution of FTHM tokens is aligned with the protocol's goal to encourage long-term engagement and participation.
FTHM token holders can convert their tokens into vFTHM, which represents their voting power within the DAO. The vFTHM tokens are non-transferable and are used exclusively for voting on proposals within the DAO, ensuring that voting rights are retained by active participants in the ecosystem.
Staking FTHM tokens not only secures the network but also enhances decentralization and incentivizes token holders by distributing protocol fees and rewards. Stakers receive vFTHM in proportion to the amount of FTHM they stake, increasing their influence in governance decisions proportionally to their stake. This mechanism promotes a stable and secure network governance structure.
Governance mechanisms are designed to facilitate decentralized decision-making in the DAO. Token holders use their vFTHM to vote on proposals, electing development directions, and protocol upgrades. This structure ensures that the governance process is democratic and aligns with the interests of active participants.
