How FWA Reserve works
FWA Reserve converts $FWAres trading fees into $FWA through the Fake World Assets acquisition protocol, and hands the resulting treasury to holders. This page explains every step and every number.
Overview
FWA Reserve is a treasury system built on top of Fake World Assets, an onchain randomized NFT acquisition protocol, informally: the gacha. Right now, external buys of the $FWA token are gated, so the gacha is the only public way to acquire it.
The reserve exploits exactly that. Every trade of $FWAres pays a fee into a shared treasury. The treasury spends that fee playing the gacha and takes every result as $FWA. Every hour, holders are airdropped their share of the growing vault as wFWA coupons, and redeem those coupons for real $FWA once the transfer gate opens.
In one line: every trade is a pull, and every pull is yours.
The loop
01The tax collects. Every buy and sell of $FWAres routes its fee into the reserve. There is no team allocation doing the buying and no lockups. Trading volume is the only fuel.
02The reserve pulls. Treasury ETH pays the FWA acquisition price. Chainlink VRF selects a random NFT position from the pool. Every position in that pool is backed by its depositor's escrowed ETH, held onchain.
03Every pull becomes $FWA. The reserve never keeps the NFT. It accepts the depositor's pre-funded standing bid, settled as $FWA, which pays out 85% of the position's ETH backing in token form.
04Holders own the vault. All acquired $FWA lands in the treasury, visible on the dashboard in real time. Every hour, holders' shares are recorded and wFWA is airdropped straight to their wallets.
$FWAres
$FWAres is the reserve's token and the engine of the whole system. It trades with a 5% fee on buys and 5% on sells, collected by the Uniswap v4 hook. That fee is the treasury's only inflow: no pre-mine feeding the vault, no separate revenue stream, just volume.
Holding $FWAres is all it takes to earn wFWA. Your share of each hourly airdrop is proportional to your share of supply at that snapshot.
The treasury
The treasury is a wallet you can watch. The dashboard on the home page shows its $FWA balance, the USD value at the current price, the ETH deployed into pulls, and the total wFWA issued against it, all updating live.
The vault only ever grows from gacha settlements. It never trades, never sells before redemption, and never spends holder entitlements. What you see on the dashboard is what backs your coupons.
wFWA
wFWA is not a second version of $FWAres. It is a coupon: a claim on the treasury, backed 1:1, meaning every wFWA you hold redeems for one $FWA from the vault. Issuance is hard-pegged to accumulation: each hourly snapshot mints exactly as much wFWA as the $FWA the treasury gained in that window.
wFWA is transferable, with a 2% transfer fee. That means it has a price before redemption ever opens: you can sell your claim early at whatever the market offers, or accumulate claims from sellers who won't wait.
wFWA is airdropped to you hourly for holding $FWAres. You spend it once, at redemption, to redeem real $FWA.
The airdrop
wFWA reaches you by airdrop, not by claim. Every hour, a snapshot records each $FWAres holder's share of the treasury, and the corresponding wFWA is sent straight to holder wallets. There is nothing to claim, nothing to sign, and no gas for you to pay. Hold $FWAres, receive wFWA.
The very first airdrop lands 1 hour after launch. It is deliberately early and deliberately small: a live test of the whole pipeline, run in public, so everyone can see the machine works before the numbers get big.
Pegged issuance
Each airdrop mints exactly as much wFWA as the $FWA the treasury gained in that hour, split across holders pro-rata by their $FWAres balance at the snapshot. Total wFWA in circulation therefore always equals the $FWA in the vault, which is what keeps the coupon backed 1:1.
Snapshots
Your share is measured at the moment of each hourly snapshot. Buying after a snapshot means your first wFWA arrives with the next one, at most an hour away. Wallets holding $FWAres in the trading pool or in contracts that can't receive tokens are excluded from distribution.
Redemption
Redemption opens when the $FWA transfer gate does, expected approximately 10 days after launch. The exact moment belongs to the FWA protocol, not to the reserve, which is why we say "at unlock of $FWA" rather than naming a date.
When it opens, the redemption page goes live on this site. You redeem wFWA for your share of the treasury in $FWA, at the 1:1 rate. Each coupon is spent once. Unredeemed wFWA keeps its claim; there is no deadline pressure.
OTC market
Because wFWA is transferable, it can trade before it matures. The reserve will run an OTC market for wFWA, coming soon. The gap between wFWA's market price and its 1:1 treasury backing is the market's own countdown clock: it should narrow as unlock approaches.
The reserve takes a fee on OTC trades; the rate will be announced before the market opens.
The FWA gacha, briefly
Fake World Assets is an onchain protocol where depositors list NFTs paired with committed ETH backing. Anyone can pay the pool-derived acquisition price to receive one randomly selected position, with randomness supplied by Chainlink VRF and requests settled strictly in order.
Each position's backing funds an irrevocable standing bid from its depositor. A purchaser can keep the NFT, or sell it back by accepting that bid, receiving 85% of the backing, and can take that settlement as $FWA instead of ETH. That last path is the one the reserve uses on every pull.
Every successful acquisition also earns a share of FWA's purchaser reward emissions while they run, an additional stream of $FWA on top of the settlements.
Full protocol documentation lives at fwa.fun/docs.
Parameters
FAQ
Do I need to do anything to receive wFWA?
No. Hold $FWAres in a normal wallet and the airdrop finds you every hour. No claiming, no signing, no gas.
What if I buy right after a snapshot?
Your first wFWA arrives with the next hourly airdrop, at most an hour away. Snapshots measure balances at a moment in time, so timing your entry around them changes at most one hour of accrual.
What exactly do I get at redemption?
One $FWA from the treasury for every wFWA you redeem, at the fixed 1:1 rate. Redemption opens when the $FWA transfer gate does, and unredeemed wFWA keeps its claim indefinitely.
Where does the treasury's $FWA come from?
Only from gacha settlements. The trading tax pays acquisition prices, every pull is settled as $FWA at 85% of the position's backing, and successful pulls also collect FWA's purchaser reward emissions while those run.
Is FWA Reserve part of the FWA protocol?
No. FWA Reserve is independent of, and unaffiliated with, Fake World Assets. The reserve is a participant in their protocol, the same as any other purchaser.