Fake World Assets' Token Price Plummets After Team Reverses Course on Buybacks

Fake World Assets (FWA), an Ethereum-based NFT gacha protocol, made significant changes to its tokenomics after holders learned that none of the $3.2 million in revenue generated during its launch period would fund buybacks.

The team behind FWA, TokenWorks, initially announced on Monday evening that 50% of their share of future fees would go towards buybacks, but this plan was met with criticism from holders who pointed out that no retroactive distributions would be made to address the issue.

TokenWorks' co-founder Adam, also known as Rhynotic, responded to the backlash by committing to route up to 80% of future protocol fees towards buybacks and spending $610,000 buying FWA for a team reserve. He also disclosed that 63% of revenue went to TokenWorks, 30% to S02 holders, and 7% to co-developer Teto.

The changes came after FWA's token price plummeted by over 40%, hitting an all-time low of $0.0066 on Tuesday, according to CoinGecko. The token's market capitalization has slid to about $8 million, and its price is now 78% below its July 26 peak.