🔐FDV locked

FDV (Fully Diluted Valuation) is a key metric in the Surge contract system that determines token unlocking based on project performance. It represents the total value of all tokens when fully unlocked, providing a transparent and performance-based vesting mechanism.

🎯 Purpose of FDV System

Why FDV Matters

• Performance-Based Unlocking: Tokens unlock based on project success, not just time

• Transparent Valuation: Clear metrics for investors and project teams

• Incentive Alignment: Aligns team incentives with project performance

• Market Protection: Prevents premature token dumping

Core Principles

1. Dynamic Calculation: FDV increases as project value grows

2. Milestone-Based: Unlocking tied to specific performance milestones

3. Gradual Release: Tokens unlock progressively, not all at once

4. Market Responsive: System adapts to market conditions

📊 FDV Calculation System

Base Parameters

• Initial FDV: 60000 SUI

• Precision: Uses square root for calculation stability

• Maximum Supply: 1,000,000,000 tokens

Mathematical Formula

Square Root FDV (for stability)

sqrt_fdv = √(real_fdv)

Target FDV for Round N

target_fdv = initial_fdv × (1 + growth_rate)^round

Real FDV Calculation

real_fdv = sqrt_fdv²

🔄 Milestone Progression

Round 0 (Initial)

• Target FDV: 60,000 SUI

• Unlock Percentage: 2%

• Tokens Unlocked: 20,000,000 AI

Round 1

• Target FDV: 300,000 SUI

• Unlock Percentage: 2%

• Tokens Unlocked: 20,000,000 AI

Round 2

• Target FDV: 1,200,000 SUI

• Unlock Percentage: 2%

• Tokens Unlocked: 20,000,000 AI

📈 FDV Growth Schedule example

Round	Target FDV (SUI)	Unlock %	Cumulative %	Tokens Unlocked
0	60,000	0%	10%	0
1	300,000	2%	12%	20,000,000
2	1,200,000	2%	14%	20,000,000
3	4,800,000	2%	16%	20,000,000
4	8,600,000	2%	18%	20,000,000
5	14,000,000	2%	20%	20,000,000
6	17,000,000	3%	23%	30,000,000
7	20,000,000	3%	26%	30,000,000
8	23,000,000	3%	29%	30,000,000
9	26,000,000	4%	33%	40,000,000
10	29,000,000	4%	37%	40,000,000
11	57,000,000	5%	42%	50,000,000
12	86,000,000	5%	47%	50,000,000
13	115,000,000	6%	53%	60,000,000
14	140,000,000	6%	59%	60,000,000
15	170,000,000	7%	66%	70,000,000
16	200,000,000	7%	73%	70,000,000
17	230,000,000	8%	81%	80,000,000
18	260,000,000	9%	90%	90,000,000
19	290,000,000	10%	100%	100,000,000

🎯 How FDV Affects Token Unlocking

Triggering Mechanism

1. Project Performance: FDV increases based on project milestones

2. Market Conditions: Real FDV reflects current market valuation

3. Milestone Achievement: When real FDV reaches target FDV

4. Automatic Unlocking: Tokens unlock automatically upon milestone completion

Unlocking Process

// Trigger milestone when FDV target is reached
milestone::trigger_milestone<AI, USDA>(
    wallet,
    project_manager,
    ctx
);

Progress Calculation

• Current Progress: (current_sqrt_fdv - prev_target) / (target_sqrt_fdv - prev_target) × 100

• Milestone Completion: When progress reaches 100%

• Partial Unlocking: Pro-rated unlocking based on progress

🔧 Technical Implementation

Key Functions

Get Target FDV for Round

public fun get_sqrt_fdv_target(round: u8): u64 {
    if (round == 0) {
        return INITIAL_SQRT_FDV
    };
    
    let mut target = INITIAL_SQRT_FDV;
    let mut i = 0u8;
    
    while (i < round) {
        target = target * (100 + SQRT_FDV_INCREASE_RATE) / 100;
        i = i + 1;
    };
    
    target
}

Convert Sqrt FDV to Real FDV

public fun sqrt_fdv_to_real_fdv(sqrt_fdv: u64): u64 {
    let sqrt_fdv_128 = (sqrt_fdv as u128);
    let real_fdv = sqrt_fdv_128 * sqrt_fdv_128;
    (real_fdv as u64)
}

Calculate Unlock Percentage

public fun get_unlock_percentage(round: u8): u64 {
    if (round == 0) {
        return INITIAL_UNLOCK_PERCENTAGE
    };
    
    let mut percentage = INITIAL_UNLOCK_PERCENTAGE;
    let mut i = 0u8;
    
    while (i < round) {
        if (percentage > MIN_UNLOCK_PERCENTAGE) {
            let decrease = percentage * UNLOCK_DECREASE_RATE / 100;
            if (percentage > decrease) {
                percentage = percentage - decrease;
            } else {
                percentage = MIN_UNLOCK_PERCENTAGE;
            }
        };
        i = i + 1;
    };
    
    percentage
}

📊 FDV Monitoring

Current Status Tracking

• Current Real FDV: Actual project valuation

• Target FDV: Required FDV for next milestone

• Progress Percentage: How close to next milestone

• Expected Round: Which round current FDV corresponds to

Status Queries

// Get current milestone information
let (current_sqrt_fdv, target_sqrt_fdv, current_real_fdv, target_real_fdv, expected_round) = 
    milestone_constants::get_current_milestone_info(current_sqrt_fdv, current_round);

// Get progress percentage
let progress = milestone_constants::get_milestone_progress_percentage(current_sqrt_fdv, current_round);

⚡ Performance Optimization

Square Root Calculation

• Stability: Square root prevents overflow in calculations

• Precision: 6-digit precision for accurate calculations

• Efficiency: Optimized Newton's method for square root

Batch Updates

• Multiple Wallets: Update multiple wallets simultaneously

• Gas Efficiency: Reduce transaction costs

• Atomic Operations: Ensure consistency across updates

🔒 Security Features

Validation Checks

• FDV Range: Ensures FDV stays within reasonable bounds

• Unlock Limits: Prevents excessive token unlocking

• Progress Validation: Verifies milestone progress accuracy

Error Handling

• Overflow Protection: Prevents mathematical overflow

• Boundary Checks: Validates input parameters

• Graceful Degradation: Handles edge cases gracefully

📈 Benefits of FDV System

For Project Teams

• Performance Incentives: Rewards successful project development

• Market Alignment: Unlocking tied to market performance

• Investor Confidence: Transparent and predictable system

For Investors

• Risk Mitigation: Gradual unlocking reduces dumping risk

• Performance Tracking: Clear metrics for project evaluation

• Market Protection: Prevents premature token releases

For the Ecosystem

• Market Stability: Reduces token price volatility

• Long-term Focus: Encourages sustainable project development

• Transparency: Clear and auditable unlocking mechanism

---

Note: The FDV system is designed to provide a fair and transparent token unlocking mechanism. All calculations are performed on-chain and are publicly verifiable.