Merchant Tutorials
This section explains how merchants join, how rewards accumulate, and how FUN circulates back through the system.
Becoming a Merchant
A merchant account allows a business to list products, accept payments, and receive FP as part of the platform’s contribution model.
Steps:
Apply through the merchant onboarding page.
Provide required business details and complete KYC/KYB checks if applicable.
Set up the storefront, including product categories and pricing.
Connect the required wallet to receive FP and FUN.
Once approved, the merchant can begin listing goods and handling orders.
Understanding the Service Fee Structure
Every order processed on FunPay includes a fixed 20% service fee, which is tied directly to the ecosystem’s circulation model.
How it works:
When a buyer completes a purchase, FunPay automatically deducts 20% from the merchant’s order revenue.
This service fee is not retained as profit. It is injected into the liquidity pool, strengthening the token’s market depth.
A portion of this fee determines how much FP the merchant receives.
This means that every sale not only generates revenue for the merchant but also increases their long-term earning potential through FP accumulation.
Earning FP (FunPower)
FP reflects a merchant’s contribution to the ecosystem. Higher contribution means higher daily FUN generation potential.
Merchants earn FP through the following rule:
A merchant receives 20% to 40% of the service fee amount back as FP.
The exact percentage depends on the merchant’s level within the system.
Example: If a purchase incurs a $10 service fee : The merchant earns between 2 FP and 4 FP depending on their tier.
FP has a fixed valuation of $1, and its only purpose is to generate FUN through the daily conversion mechanism. It is not tradable.
How FUN Generation Works for Merchants
FP accumulated by the merchant converts into FUN once per day through the system’s automated generation cycle.
Key rules:
The conversion runs once daily between 00:00 and 02:00 UTC at a random moment.
FUN generation is determined using the formula:
The coefficient begins at 0.5% and increases as the merchant levels up.
Merchants must manually claim the generated FUN.
Unclaimed FUN expires after 7 days.
This keeps FUN distribution tied to consistent participation and platform activity.
FP Burning Mechanism
FP decreases automatically through actions tied to FUN generation and referral earnings.
Burn rules:
Generation Burn For every $1 worth of FUN generated, 0.2 FP is burned.
Referral Commission Burn For every $1 of FUN earned from sharing or referrals, 0.1 FP is burned.
Zero FP Rule When a merchant’s FP reaches zero, FUN generation stops until new FP is earned from transactions.
Burning keeps FP supply balanced and supports long-term ecosystem health.
Using FUN as a Merchant
FUN has multiple roles for merchants:
It represents measurable value generated from their contribution.
Merchants may use FUN for benefit redemption when future merchant-side incentives or fee reductions are introduced.
FUN can re-enter the circular model if reinjection thresholds apply in future phases.
Merchant Workflow SummaryA merchant’s operational loop follows a predictable pattern:
List products and receive orders.
Platform deducts a 20% service fee.
Liquidity is reinforced through fee injection.
Merchant earns FP according to their level.
Merchant converts FP into FUN during the daily cycle.
FP burns as FUN is generated.
FUN becomes redeemable economic value for the merchant.
This loop ensures that active merchants gain continuous benefits simply by doing business within the ecosystem.
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