Governance Glossary

Crypto Wallet: A crypto wallet is a place where you can securely keep your crypto. Favos recommends Rainbow Wallet for our customers who don’t have crypto wallets because it is the best one for beginners that need an Ethereum wallet & address. Also, it has a smooth user interface and is easy to navigate. Rainbow is as secure as the Ethereum blockchain, making it extremely safe to use. As long as you keep your device and recovery phrase safe, there is little risk of anything happening to your funds. If you receive an email asking you to verify your Rainbow Wallet or provide some sort of ID for using it, it’s a phishing scam.

MultiSig: A MultiSig wallet is a digital wallet that operates with multisignature addresses. This means that it requires more than one private key to sign and authorize a crypto transaction or, in some cases, that several different keys can be used to generate a signature. In simplest terms, it is a Crypto wallet with multiple owners. Our MultiSig will initially be governed by our Founders who will follow the votes cast on Shapshot to begin our initial governance process.

DAO: A decentralized autonomous organization is an entity structure in which tokenholders participate in the management and decision-making of an entity. There is no central authority of a DAO; instead, power is distributed across token-holders who collectively cast votes.

Ethereum: Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. FVS tokens are in the Ethereum blockchain, in one of its Layer 2 networks, Optimism.

Optimism: Optimism is a Layer 2 scaling solution for Ethereum that can support all of Ethereum’s decentralized applications. Instead of running all computation and data on the Ethereum network, Optimism puts all transaction data on-chain and runs computation off-chain, increasing Ethereum’s transactions per second and decreasing transaction fees. Favos opted to use Optimism for our FVS tokens due to its efficiency and cost-effectiveness.

FVS Token: FVS is the ticker symbol for our Favos Governance Tokens. FVS tokens will be awarded to our customers during our periods of distribution. The amount that each customer will get depends on a couple of factors: 1) How many Favos garments they have purchased in that time period, 2) how many total customers have purchased within the given period of time, and 3) and how many items each customer purchased in total. The more other customers purchase, the more dilution will occur within that distribution period. The more one purchases, and the earlier in Favos’s existence, the more tokens they will accumulate. FVS tokens represent an ownership stake in Favos, and also give governance voting power for our customers. The FVS token is a mechanism which decentralizes governance and gives customers the autonomy and the power to collectively decide the future of Favos.

Snapshot: Snapshot is a decentralized voting system. It is used by the biggest Web3 and Crypto organizations to help survey and collect votes from its users. Favos decided to use Shapshot since it uses ‘off-chain’ signing techniques to make voting more efficient and cost-effective for our customers.