Fake World Assets Overhauls Buyback Program Amid Community Backlash

TokenWorks' Fake World Assets (FWA) project has revised its buyback program after community backlash. The protocol, which blends real-world asset tokenization with a gacha-style NFT mechanic, generated $3.2 million in fees during its first two weeks of operation. However, the community soon realized that only 15% of these fees were allocated to token buybacks under specific conditions, using Chainlink VRF for randomized NFT pulls.

This realization led to a sharp decline in the token price, falling 43% from its peak market cap of around $38 million. The project's founders moved quickly to address the issue, revising the buyback program to commit 80% of future protocol fees to token repurchases.

The revised plan also includes a pledge by the founder of 327 ETH to reserve funds. However, experts warn that this move may not be enough to counteract the death spiral risk, where selling pressure from early participants intensifies as rewards diminish.