FOMO Tool is a token issuance simulation tool designed to help Web3 projects quickly predict token price trends and investor returns before finalizing parameters.
By simulating a complete AMM (Automated Market Maker) process, projects can:
- Validate parameter configuration reasonableness
- Evaluate investor ROI potential
- Optimize token economic models
- Reduce price volatility risks at launch
One: Core Concepts
What is Token Minting?
Token minting refers to the process of releasing a fixed amount of new tokens into the liquidity pool during fixed periods (e.g., daily), thereby affecting token price.
This is a common mechanism in Fair Launch models, serving purposes like:
- Gradual token release: Prevent massive selloffs at launch
- Continuous liquidity provision: Maintain trading depth
- Periodic price appreciation: Create investment appeal
Two: Workflow
FOMO Tool's core is simulating a multi-round minting process:
Initial State (Round 0)
↓
Round 1: New tokens → Calculate price → Auto market making → Record stats
↓
Round 2: New tokens → Calculate price → Auto market making → Record stats
↓
...repeat multiple rounds...
↓
Final Results: Price curve, ROI, LP statistics
Each round follows the same steps with different input parameters.
Three: Core Algorithm - AMM Constant Product Formula
FOMO Tool uses a Uniswap V2-style AMM to calculate prices and trading volumes.
Basic Formula
x * y = k
Where:
- x = Token reserve amount
- y = BNB reserve amount
- k = Constant (liquidity invariant)
Price Calculation
Price = Y / X (BNB ratio per token)
For example:
Current State:
X = 1,000,000 tokens
Y = 100 BNB
Price = 100 / 1,000,000 = 0.0001 BNB/token
User purchases:
Pays 10 BNB
Calculate tokens received using x * y = k
New price becomes slightly higher (price appreciation)
Four: Parameter Guide
When using FOMO Tool, you need to fill in 6 key parameters:
1. Total Supply
The total token quantity the project plans to issue.
Example: 100 million (100,000,000).
Recommendation: Consider future inflation and burning mechanisms. Usually set to a relatively large number.
2. Initial Price
The project's token price at launch, measured in BNB.
Example: 0.0001 BNB/token = 10,000 tokens per BNB.
Recommendation: Directly affects initial liquidity depth and investor purchasing power. Too high will trigger MAX_ITERATIONS warning.
3. Max Purchase Per Address
The maximum tokens each address can purchase in a single minting round.
Example: 100,000 tokens.
Purpose: Prevent whales from concentrated selling in early stages.
4. Auto Purchase Ratio
The percentage of tokens automatically repurchased each round (corresponds to service fee portion).
Example: 10% (10% of revenue used for buyback).
Purpose: Creates price support and prevents dumping.
5. Liquidity Ratio
The percentage of BNB from user purchases that gets added to the liquidity pool each round.
Example: 80% (remaining 20% as project revenue).
Purpose: Affects liquidity depth and slippage.
6. Minting Times Per Day
How many rounds of minting occur per day.
Example: 2 times (12:00 PM and 6:00 PM).
Purpose: Determines the frequency of price appreciation.
Five: Detailed Calculation Process
Steps Per Minting Round
Assume we set:
- Total supply: 100 million tokens
- Initial price: 0.0001 BNB
- Max per address: 100,000 tokens
- Auto purchase ratio: 10%
- Liquidity ratio: 80%
- Daily minting times: 2
Round 1 begins:
1️⃣ New Token Addition (First minting)
Initialize based on initial price and liquidity:
- Initial liquidity = 10,000,000 tokens + 1,000 BNB
2️⃣ User Purchases
- Maximum 100 addresses, each can buy max 100,000 tokens
- Assume users collectively purchased 900,000 tokens for 90 BNB
3️⃣ Auto Repurchase (10% of 90 BNB = 9 BNB)
- Use 9 BNB to repurchase tokens from pool
- Price continues to appreciate
4️⃣ Add Liquidity (80% of 90 BNB = 72 BNB)
- Add 72 BNB to liquidity pool
- Add corresponding tokens to maintain x*y=k
5️⃣ Record Statistics
- Current price
- Total user BNB payment
- Project revenue (20% = 18 BNB)
- Remaining tokens to mint
Round 2 begins (based on Round 1's final state)...
And so on until all tokens are minted.
Six: Output Metrics Explained
Total Minted
The total token quantity already released to the market.
Minting Times
The actual number of minting rounds completed.
Total User Payment (BNB)
The total BNB users spent throughout the entire process.
Service Fee
The BNB the project receives from the non-liquidity portion (20% of user payments).
Auto Market Pool
The total BNB used for automatic buybacks.
Current Price
The token price after the final round.
Max Growth Rate
The percentage increase from initial price to peak price.
Example:
Initial price = 0.0001 BNB
Peak price = 0.0005 BNB
Growth rate = (0.0005 - 0.0001) / 0.0001 = 400%
LP Query
Query specific round LP data and investor returns.
After selecting a round's query index, you can see:
- That round's investor ROI
- Investment amount and redemption value
Seven: Common Scenarios
Scenario 1: Price Volatility Too High
Problem: Price rises sharply in early rounds, then plateaus quickly, causing losses for late-stage buyers.
Solution:
- Increase
Daily minting times→ Spread releases for smoother curves - Decrease
Initial price→ Increase initial liquidity depth - Increase
Auto purchase ratio→ Add more price support
Scenario 2: Insufficient Liquidity
Problem: Large purchases face excessive slippage.
Solution:
- Increase
Liquidity ratio→ More BNB enters pool - Increase
Initial liquidity→ Higher baseline depth - Decrease
Initial price→ More tokens in pool
Scenario 3: Verify Achievable ROI
Problem: Investors want to know the required price appreciation to break even.
Solution: Query a specific round index in the results, compare that round's ROI with current price to understand:
- Actual returns at current price
- Required appreciation for target ROI
Eight: Important Notes
Extreme Parameters Cause Excessive Iterations
If parameters are set irrationally (e.g., very low initial price), you may see:
⚠️ Current parameters would require more than 1000 simulation rounds
Reason: Each round can only mint a limited amount of tokens. Extreme parameters require thousands of rounds to complete.
Solutions:
- Increase
Initial price - Increase
Max purchase per address - Increase
Daily minting times
Price Prediction Accuracy
FOMO Tool operates under these assumptions:
- Constant purchase demand each round
- No unexpected large-scale selloffs
- AMM slippage calculated per formula
Note: Real markets fluctuate. This tool is for reference only, not the sole decision-making basis.
Summary
FOMO Tool helps projects quickly validate token economic models through AMM simulation and iterative round-by-round processing.
Key takeaways:
- 6 parameters control every aspect of the minting process
- AMM constant product formula determines price calculation
- Each round follows the same steps with different base states
- Output metrics cover price, liquidity, revenue, ROI and more
- Parameter adjustments fine-tune price trends and investor experience
Start using FOMO Tool to rapidly iterate on your token economic model!
