Free floating

The value of FFD is not pegged to another asset (such as the U.S. dollar), but is determined by the free market. Both staking and bonding are ways for the protocol to have ownership of FFD and its liquidity.

Users are always motivated to bond and stake. If they believe the price of FFD will go up, staking it removes supply will push the price higher, which is a positive payoff. Bonding does not affect the price, but will provide liquidity to the protocol, which is also a positive payoff. When users sell FFD, it will push the price down, which is a negative payoff.

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