FU Money Coin (FUMO) introduces a decentralized governance system designed to empower the community through the use of blockchain technology. FUMO holders participate in important decisions that directly influence the future of the project. The system incorporates governance features, including proposals, voting, and a tiered trust point system to enhance the decision-making process.
The FU Money Coin Debt Relief Program aims to support individuals struggling with debt. The program operates by offering loans to users in need, which can be funded by contributions from the community. In tough times, banks often dont lend money, to mitigate their risks. But this is also weakening people in need. To ensure that the program is sustainable and free from abuse, loan requests are subject to community governance and are approved through voting.
Program Features:
Loan Proposals: Users in need of debt relief can submit loan proposals, which are then voted on by the community based on the user’s trust score and engagement history.
Repayment System: Loans are repaid with interest, and a portion of the interest payments is allocated back into the community fund to sustain future loans.
Interest Collateral: To mitigate risk, loan proposers must allocate a certain percentage of the loan’s interest as collateral in advance, which can be redistributed to fund delinquencies if needed.
FUMO holders are granted voting rights based on the amount of FUMO they hold, with each token contributing to the overall voting power. This ensures that those who have a larger stake in the ecosystem have a proportionally larger influence over governance decisions. To further refine the governance process, users can enhance their voting power through Public Trust Points (PTP), which reflect their participation and reputation in the FU Money community.
Proposal System:
Users can submit proposals for community decisions, such as loan proposals or changes to the governance structure.
Each proposal is tracked in a dedicated Proposal Account, which contains the details of the proposal, including the amount requested, proposer, approval/rejection votes, and status.
Voting Mechanism:
Voting rights are based on the number of FUMO tokens held by the user. Only those holding FUMO can vote in governance actions.
Public Trust Points (PTP) enhance the voting power of an individual, but the majority of the voting weight comes from the amount of FUMO they hold. The more tokens a user holds, the more influence they have on the outcome of a vote.
Proposals are approved or rejected based on the aggregated voting power of the participants. A proposal passes if it reaches a threshold of "Yes" votes.
Tiered Trust Point System:
Public Trust Points are earned by users based on their participation in the FU Money ecosystem. This includes contributing to the fund, repaying loans, participating in governance actions, and engaging with the community.
Public Trust Points enhance a user's voting weight. Users with higher Public Trust Points will have more influence in decision-making, allowing for a system where long-term and reliable participants are rewarded.
While Public Trust Points increase the weight of a user's vote, the primary factor in voting power remains the amount of FUMO held.
Fund Management and Loans:
The Debt Relief Fund is governed by the community through the Proposal and Voting Systems. Contributors to the fund can deposit assets (USDC), which are allocated to loans (a conservative amount is reserved for delinquency funds).
Loan proposals are submitted and voted on by the community. Only contributors with a certain level of Public Trust Points and FUMO can submit high-value loan proposals.
Interest rates and loan terms are dynamically adjusted based on community decisions and the health of the fund. The fund can support borrowers through interest collateral systems and other safety measures.
Proposal Account:
Tracks the loan proposal details, including requested amounts, proposer, votes, and proposal status.
Contributor Account:
Tracks individual contributions to the Debt Relief Fund and calculates eligibility for withdrawals and interest distribution.
General Fund Account:
Manages the overall fund balance, loan-to-fund ratio, bad debt reserve, and interest distribution.
Loan Account:
Manages the loan details, including the borrower, loan amount, repayment terms, and status.
Voting and Trust Point System:
Voting is done by FUMO holders, with Public Trust Points enhancing voting weight. Proposals with sufficient votes (from both FUMO and Public Trust Points) are executed.
To ensure a fair and transparent loan proposal system, the eligible loan proposal amounts will be determined by each community member’s public trust points. Public trust points are awarded based on users’ repayment and loan history, with a boost for participation as a fund contributor.
The table below outlines the eligible loan amounts based on trust points:
Public Trust Points Eligible Proposal Amount Interest rate applied
0-99 $100 8%
100-199 $250 8%
200-299 $500 8%
300-399 $750 8%
400-499 $1,000 7%
500-599 $1,250 7%
600-699 $1,500 7%
700-799 $1,750 7%
800-899 $2,000 6%
900-999 $2,250 6%
1,000+ $2,500 6%
Trust Points Accumulation: Users accumulate trust points based on their repayment and loan history. Participation as a fund contributor also provides an additional boost to trust points.
Loan Proposal Limits: The maximum loan proposal amount is capped at $2,500, even for users with the highest trust points. This limit might be raised in the future.
Adjustable by Governance: The community can vote to adjust the thresholds for trust points or increase the maximum eligible loan amount through governance actions.
Loan Request Submission: Users in need of debt relief can submit a loan proposal, specifying the amount requested and the terms of repayment.
Governance Voting: Once a proposal is submitted, the community votes on whether to approve or reject the loan. Votes are weighted by the trust points of each voter.
Loan Disbursement: If a proposal is approved, the loan is disbursed to the borrower, and the agreed-upon repayment schedule is set.
Repayment and Fund Distribution: As loans are repaid, the interest is redistributed back to the contributors, and a portion of the interest goes into the bad debt reserve.
The community fund serves as the backbone of the debt relief program. It is powered by contributions from users, who deposit funds into the system in exchange for future returns on their investments. The funds are used to issue loans to individuals in need, with repayment plans designed to ensure that the system remains sustainable.
Funding Sources:
Contributors: Community members contribute small amounts of cryptocurrency (such as USDC) to the fund. In return, they receive interest payments based on the fund's performance.
Interest Payments: Interest from repaid loans is distributed back into the fund, rewarding contributors for their investment.
Loan-to-Fund Ratio: A maximum loan-to-fund ratio ensures that the system remains liquid and avoids overexposure to any single loan or borrower.
Withdrawals and Lock Periods:
Lock Period: Contributors’ funds are time-locked for a predefined period (e.g., 3-12 months) to ensure stability in the fund.
Withdrawal Conditions: Contributors can withdraw their funds after the lock period or upon full repayment of loans, depending on the fund’s liquidity and repayment status.
To mitigate the risks of delinquency and ensure fund stability, the system implements several safety measures:
Bad Debt Reserve: A portion of the fund is allocated as a reserve to cover bad debts in case of default.
Interest Collateral: Borrowers must allocate a certain percentage of the interest upfront as collateral, which is used to replenish the fund in case of delinquency.
Dynamic Fund Allocation: The system adjusts the loan-to-fund ratio dynamically based on the health of the fund and the current delinquency rates.
Reputation and Trust Points: Borrowers with a history of bad debt or low trust scores may face restrictions on the size of the loan they can request or their eligibility for the debt relief program.
Fund closure: Through governance votes, the community can decide to temporarily close the fund for any new proposals, until the outstanding loans are repaid and the fund is in balance again.
To ensure the long-term sustainability of the FU Money Coin ecosystem and to cover operational costs, small fees are introduced at various stages of the platform's processes. These fees are designed to minimize spam and ensure that the system remains efficient, while also generating revenue for ongoing development and server maintenance.
Proposal Submission Fee
Purpose: A fee of 0.02 SOL will be charged to users when they submit a proposal for voting. This fee serves two purposes: to cover the operational costs associated with handling proposals, and to prevent spam or low-quality submissions that could clog the voting process.
Adjustable by Governance: The proposal submission fee can be adjusted by the governance system through community voting, allowing the platform to react to changing operational needs or economic conditions.
Loan Issuance Fee
Purpose: Upon approval of a loan proposal, a loan issuance fee of 0.01 SOL will be applied when the borrower first withdraws the granted loan amount. This fee helps cover the cost of processing the loan and ensures that the platform can continue to operate smoothly as loans are distributed.
Late Payment Fee
Purpose: A fee of 0.001 SOL will be applied if the borrower repays the loan later than the agreed-upon repayment deadline. This late payment fee is designed to encourage timely repayments and help mitigate the impact of delayed funds on the platform's stability.
The collected fees will be used to cover operational costs such as server maintenance, platform development, and security. These fees are also designed to be transparent and adjustable through governance actions. As the platform grows and evolves, the governance system will have the ability to adjust the fee structure to ensure the system remains financially healthy and capable of providing the best service to the community.
Let's walk through an example of a user making their first and second loan proposals, showing the applied fees, interest, and payment plan.
First Proposal:
User Trust Points: 50
Eligible Loan Amount: $100 (based on the user’s trust points range: 0-99)
Loan Proposal Amount: $100
Fees Applied:
Proposal Submission Fee: 0.02 SOL
Loan Issuance Fee: 0.01 SOL (applied when the loan is withdrawn)
Interest:
Annual Interest Rate: 8% of loan amount.
Interest to be Allocated: $100 * 8% = $8 per year.
Payment Plan:
The loan will be repaid in equal installments over 12 months (1 year).
Monthly Repayment Amount: $100 / 12 = $8.33/month.
Total repayment: $100 principal + $8 interest = $108 over the course of the year.
Second Proposal:
User Trust Points: 150
Eligible Loan Amount: $250 (based on the user’s trust points range: 100-199)
Loan Proposal Amount: $250
Fees Applied:
Proposal Submission Fee: 0.02 SOL
Loan Issuance Fee: 0.01 SOL (applied when the loan is withdrawn)
Interest:
Annual Interest Rate: 8% of loan amount.
Interest to be Allocated: $250 * 8% = $20 per year.
Payment Plan:
The loan will be repaid in equal installments over 12 months (1 year).
Monthly Repayment Amount: $250 / 12 = $20.83/month.
Total repayment: $250 principal + $20 interest = $270 over the course of the year.
Proposal # Loan Amount Interest (p.a.) Monthly Repay. Total pay. Fees
1st Proposal $100 $8 $8.33 $108 0.02 SOL Proposal, 0.01 SOL Loan
2nd Proposal $250 $20 $20.833 $270 0.02 SOL Proposal, 0.01 SOL Loan
3rd Proposal $500 $40 $41.666 $540 0.02 SOL Proposal, 0.01 SOL Loan
...
The FU Money Coin governance system creates a decentralized, community-driven ecosystem where decision-making power is based on token holdings and reputation. By incorporating a trust point system, the platform encourages long-term engagement and rewards contributors, creating a sustainable model for funding and loan management in a decentralized environment.
The FU Money Coin governance and debt relief system offers a novel way to bridge the gap between the crypto space and the real world. By leveraging decentralized finance principles and community-driven governance, we empower users to take control of their financial futures. The tiered trust system ensures that only engaged and trusted members influence major decisions, while the debt relief program provides crucial support for those in need, all while maintaining fund stability through dynamic risk management.
This whitepaper serves as the foundation for building a transparent, secure, and sustainable ecosystem that supports financial independence through decentralized governance and community funding.
Q4 2024
Launch of $FUMO on pump.fun
Building dApp prototype
Q1 2025
Devdelopment & Testing rounds end of Q1
Application for Solana Grant for further development activities
Listing on DEX
Q2 2025
Marketing campaigns for platform
Launch of Community Fund and Debt Relief Program
Community Fund gets funded with $10,000 from DEX Listing Marketcap reaching $1 million
Q3 - Q4 2025
Extend Community Fund to $100,000 if Marketcap reaches $10 million