Reconstructing the encryption incentive model, decoding why FUNToken surged nearly 7 times in half a month?

Author: Zen, PANews

In early August, FUNToken launched the "Growth and Decentralization" foundation, The FUN100x. As the FUNToken ecosystem begins to revive significantly, the launch of this foundation is clearly aimed at maintaining the long-term integrity, inclusiveness, and decentralization of the FUN protocol to continuously promote ecosystem growth.

In the past two months, the growth of the FUNToken ecosystem has been nothing short of rapid. Since mid-June 2025, FUNToken has experienced an astonishing surge: according to data from CoinGecko, since June 17, the price of FUN has soared by 684%, with a monthly increase of 247%. This explosion is not only due to short-term speculative frenzy but also reflects the rapid implementation of the FUNToken ecosystem and a significant increase in community engagement.

From the innovative token economy model to the AI-driven interactive incentive mechanism, FUNToken is gradually becoming the focus of industry attention. Next, this article will delve into its ecological architecture, token design, and core competitive advantages to reveal the internal driving forces behind its sustained growth.

Create an ecosystem that integrates a reward mechanism driven by games, entertainment, and AI

As a GameFi platform focused on entertainment experiences, FUNToken has been continuously exploring the three major areas of decentralized gaming, Web3 entertainment, and AI intelligent rewards in recent years, and has now preliminarily formed a diverse and interconnected ecological closed loop.

In June this year, the FUNToken team launched the first AI smart reward bot "FUN Token Official Bot" (@fun_message_scoring_bot) on Telegram, marking the entry of its AI Agent system into a large-scale trial phase. This bot can scan user chat content in groups in real-time, automatically distributing FUNToken-related rewards based on quality and interaction frequency, with the entire process executed by smart contracts without the need for manual review.

In subsequent updates, the project will further upgrade the bot to restructure the way of community participation and rewards — including the launch of the "Wheel of Fortune" lucky draw feature, where users can earn a chance to spin the wheel by speaking, taking quizzes, or completing interactive tasks. Each spin rewards between 1 FUN and 100,000 FUN, with a chance to win up to $500 worth of FUN tokens.

By promoting the deep integration of social platforms with crypto incentives, the community size of FUNToken has rapidly expanded, and the frequency of active interactions has significantly increased. As of August 1, 2025, the number of active users on the platform has consistently remained above 100,000, with the number of simultaneous online users in its official chat group usually exceeding 10,000. As the ecosystem gradually thrives, the price of FUN tokens has also begun to surge in sync. According to CoinGecko data, since mid-June, the price of FUN tokens has risen from a low of $0.0033, peaking at $0.0239 in mid-July.

In addition to the Bot gameplay, the team has planned over 40 lightweight Web3 mini-games, including quiz competitions, cumulative prize pools, and social interaction games, aiming to establish an interconnected closed loop between content creation, social sharing, and entertainment experience. These games are expected to be launched in batches every quarter, with a goal of adding more than 10 new games each quarter, and are anticipated to be fully online by the first quarter of next year, which may further enhance the platform's attractiveness and user engagement frequency.

"Multi-Function" Native Token FUN

As the core that supports the entire FUNToken entertainment ecosystem, its native token FUN plays multiple roles within the ecosystem, covering on-chain payments, reward distributions, in-game betting, and staking dividends.

In the Telegram Bot, users can not only earn instant rewards by posting high-quality content but also participate in quizzes to win additional airdrops. The lucky wheel mentioned above provides active users with the opportunity to win high-value tokens, enhancing the fun of interaction and community engagement.

In addition, the platform offers flexible staking features, allowing users to deposit or withdraw FUN at any time and receive dividends in real-time. The annualized yield of the staked assets can be checked at any time from the Bot, and according to reports and real-time data as of August 1, it can reach anywhere from 6% to 87%, with no lock-up restrictions.

In the token model, FUNToken adopts a deflationary mechanism, with the project team committing to use 50% of quarterly revenue for the buyback and destruction of FUN to reduce circulation and support the long-term value of the token. On June 24, the project team executed the largest destruction to date, permanently destroying a total of 25 million FUN tokens; additionally, on July 22, FUNToken destroyed another 12 million FUN tokens. As the ecosystem expands and revenue grows, these destructions will scale proportionally, thus gradually enhancing the token's scarcity over time.

In addition, to ensure the security and transparency of the platform, the project team has relinquished the administrator rights of the smart contract, and all Bot rewards and staking logic are automatically executed by on-chain contracts. Moreover, the relevant contracts have undergone a comprehensive audit by CertiK and have received an AA security rating. With the support of CertiK Skynet monitoring mechanism, the ecosystem can monitor contract anomalies or suspicious activities in real-time, further guaranteeing the enforceability and transparency of supply reduction.

In terms of liquidity, the FUN token has been listed on several major centralized exchanges (CEX) and decentralized exchanges (DEX) such as Binance, Gate, HTX, and Poloniex, catering to global users and emerging markets, providing convenient access to the token and participation in the FUNToken ecosystem.

Establishing Differentiated Advantages with Web3 Mechanisms and AI Driven

Compared to traditional GameFi projects, FUNToken demonstrates significant differentiated advantages. Its AI-driven incentive model can evaluate user contributions in real time, directly allocating rewards to content creators, fundamentally replacing the traditional distribution model of advertising or manual review.

In the GameFi ecosystem, FUNToken utilizes AI robots as its ecological engine, establishing a deep connection between high-frequency interaction and entertainment experience by combining chat interactions, quizzes, daily mini-games, and lucky wheels, significantly increasing user engagement. Additionally, using Telegram, which has hundreds of millions of users, has proven to effectively lower the barriers to user participation, attracting traditional Web2 users and allowing these Web3 newcomers to easily get started.

In addition, compared to the GameFi tokens in the market that are almost all "falling continuously", the deflationary token model of FUN further supports the token's value, and the multi-channel liquidity layout enhances its market depth and risk resistance. Furthermore, the completely decentralized contract design adds to its safety and trust. This series of differentiated layouts gives FUNToken a unique competitive position among similar projects.

Growth and Decentralization Foundation The FUN100x, expected to invest 10 million USD

The FUN100x, as a neutral non-profit entity, aims to maintain the long-term integrity, inclusiveness, and decentralization of the FUN protocol based on open, permissionless infrastructure.

The FUN100x Foundation has committed to invest $10 million to accelerate ecological development, and the use of funds will be decided by the community: FUNToken ecological projects that require financial support can submit financing proposals, and voting by FUNToken holders will determine whether to fund them. In this case, the most influential and community-supported proposals will receive funding.

It is reported that the foundation will focus on nine core sectors:

● Core technology neutral custody: The protection protocol is an open, permissionless public infrastructure that funds R&D, formal verification, and security audits, and supports independent contributors in co-creating the roadmap.

●Open-source ecosystem growth: Encourage innovation through grants, bounties, and hackathons, and provide SDKs, tools, and mentorship support.

●Decentralization and Governance Promotion: Build a transparent on-chain governance system, publish governance principles, decision records, and progress reports, and strengthen the rights of token holders.

● Global inclusion and economic access: Focus on underdeveloped regions, support education, localization, and low-cost entry solutions to promote equitable access to digital financial tools.

●Public Goods and Social Impact Funding: Allocate part of the treasury revenue to support open-source projects and public welfare research, extending the value of blockchain technology beyond protocols.

● Security, Risk, and Resilience: Fund independent audits, vulnerability bounties, and fraud detection, and coordinate incident response mechanisms among wallets, dApps, and exchanges.

● Sustainable financial and environmental responsibility: Treasury operations adhere to transparent and open policies, balancing long-term financial stability with environmental innovation.

●Policy, Standards, and Advocacy: Engage in dialogue with regulators and standard organizations to promote decentralization, open standards, and user privacy, advocating for Web3 as a global public good.

● Education and Community Empowerment: Plan neutral learning resources, launch ambassador programs, meetups and conferences, amplify grassroots voices, and expand global participation in the FUN ecosystem.

$5 million giveaway event leading the way, will the number of users reach 1 million next year?

Since mid-June, the popularity of the FUNToken ecosystem has been continuously on the rise. To reward platform users and attract new members, the project team has decided to seize the opportunity and will soon launch a giveaway event worth up to $5 million, which will be open only to FUN token holders. Specific details will be announced shortly.

In addition, according to the roadmap released by FUNToken: the team will launch 10 new games in the third quarter, focusing on hyper-casual and viral gameplay to meet users' fragmented entertainment needs; in the fourth quarter, another 10 games will be launched, along with the FUN Wallet mobile application (Android+iOS) featuring gaming rewards and rights functions, a built-in NFT module, a leaderboard, and a dynamic incentive engine for community tasks, while deepening strategic cooperation with medium-sized game studios; in the first quarter of 2026, the plan is to continue releasing 10 new high-engagement titles, bringing the total number of games in the library to 40, and to expand the FUN Wallet functionality through multi-chain support and fiat currency access, officially introducing the FUN token into the external gaming ecosystem.

If the above plan is successfully implemented, FUNToken expects its game users to reach 10 million in the first quarter of next year, with wallet users exceeding one million. Considering the achievements of Telegram mini-games like Notcoin, Hamster Kombat, and Catizen last year, as well as FUNToken's innovations and growth over the past period, once the user growth flywheel starts, this grand vision is not unattainable.