Farmer Frank
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Bond Thesis
The process of selling fNFT Bonds in order to raise liquidity will be referred to as Bonding. In exchange for liquidity (JOE in this case) we give bond holders ownership on a part of the protocol's revenue forever.
This reward rate will vary. Unlike many other projects where APYs start very high and then diminish with time, our rate will be gradually increasing. This is because in the beginning we won't own a significant share of the veJOE pool. As time progresses and we accumulate more veJOE, revenue generated by Boosting mechanism will increase and such revenue will be distributed to bond holders, accounting for a higher reward rate.
Eventually, once the treasury is big enough and growth can simply be sustained by reinvested revenue, the protocol can stop issuing bonds. When this will occur, the protocol will tokenize Weighted Shares for the bonds (WS). fNFT Bond (ERC-721) --> fBond Share (ERC-20).
This means that all bonds will cease to exist, leaving bond holders with an ERC-20 token that has the same benefits of thefNFT bond. Users will be receiving the same exact rewards they were receiving before. Yet, they will have a fully liquid asset they can sell or accumulate with greater ease.

## Scalability

fNFT Bonds will be currently used to accumulate JOE liquidity, yet this mechanism can be used to accumulate any veToken. Should this concept prove itself successful, Farmer Frank might start accumulating major stakes in other protocols which might launch similar tokenomics, such as Stargate Finance. Simply, a fNFT Bond (STG) would be created, enabling Farmer Frank to start capturing liquidity in a hypothetical veSTG.

## Concentration of ownership

fNFT bonds have a revolutionary 2 share mechanism which enables the protocol to issue bonds without diluting ownership of revenue.
• Amount of JOE "backing" a fNFT bond. When minting a Level 2 bond for 100 JOE, your bond will be worth 100 unweighted shares. Then, as revenue gets reinvested, your bond's amount of unweighted shares will increase accordingly. This is done in order to avoid dilution. More on this at Sustainability & Emission.
• TLDR: Unweighted shares --> Account for reinvested revenue --> Increase the underlying value of the fNFT Bond.
• Weighted shares are unweighted shares multiplied by the bond's level weight. When minting a Level 2 bond for 100 JOE, your bond will be worth
$100 \cdot 1.05 = 105$
weighted shares. This metrics is utilised to distribute revenue as payments to bond holders. Users with higher level bonds will receive more than proportional payments compared to lower level bonds.
• TLDR: Weighted shares --> Account for rewarded revenue.

## Frictionless

Other boost optimizing protocols often require you to stake their veToken analog (e.g. yyJOE) in order to earn revenue and to avoid dilution. With Farmer Frank, shares are automatically update every time you claim your rewards. Therefore, there will be no need to stake the fNFT bond. This leads to a frictionless investment experience, enabling you to hold your asset always.