Question 1

What is GFI?

Accepted Answer

GFI is Goldfinch’s core ERC-20 token, used primarily for protocol governance, incentives, and community grants; it is not a direct certificate of ownership of a particular loan or a Senior Pool deposit. Goldfinch documentation clearly distinguishes GFI from FIDU: FIDU represents deposit shares in the Senior Pool, while GFI is the governance- and incentive-layer token.

Question 2

What can GFI holders participate in?

Accepted Answer

Holding GFI enables participation in governance discussions and decentralized voting in the Goldfinch community DAO. Governance can decide protocol matters and adjust arrangements related to GFI rewards and distributions; therefore, GFI’s governance role is to influence collective decisions concerning the protocol and token mechanisms, rather than automatically grant a proportional interest in loan interest or Senior Pool assets. Whether a specific proposal takes effect depends on the applicable governance process and voting outcome. Holding tokens itself should not be understood as a guarantee of any future reward, yield, or governance outcome.

Question 3

What is the difference between GFI and FIDU?

Accepted Answer

GFI and FIDU correspond to rights at different levels. GFI is used for governance, incentives, and community-related arrangements; FIDU represents a user’s deposit share in the Senior Pool. Accordingly, holding FIDU is related to providing liquidity to the Senior Pool, while holding GFI is not the same as holding a share of that pool. This difference also means that they face different mechanisms: Senior Pool funds participate in capital allocation to borrowing pools according to the protocol’s arrangements, while GFI’s value and use are more connected to governance decisions, token distributions, and ecosystem incentives. The function of one token should not be used to infer the rights of the other.

Question 4

What is GFI’s supply mechanism?

Accepted Answer

Goldfinch documentation records GFI’s initial supply cap as 114,285,714 tokens. This measure describes the initial supply design; the documentation also states that there was no predetermined inflation arrangement at that time, and whether to introduce inflation in the future would be decided by the community. Therefore, the initial supply cap should not be directly understood as circulating supply at any point in time, nor does it establish that future supply will never change. Whether supply changes depends on whether a corresponding community governance decision is subsequently made and approved.

Question 5

Which participants are covered by GFI’s initial allocation?

Accepted Answer

GFI’s initial allocation covers multiple categories related to protocol development and participation, including liquidity providers, contributors, and the auditors and borrowers listed in the documentation. Allocation categories indicate which roles the token-economic design intends to cover, but do not mean incentives for every category have been implemented at the same time or under the same rules. Goldfinch V1 documentation leaves some auditor- and borrower-related arrangements in a state that may be implemented in the future through community governance. When reading allocation information, initial design, governance-adjustable incentives, and rewards actually available to claim should be distinguished; planning descriptions should not be treated as established mechanisms.

Question 6

How does the Goldfinch protocol work?

Accepted Answer

Goldfinch connects borrowers and capital providers through specific borrowing pools. Capital providers can fund a particular borrowing pool directly or deposit into the Senior Pool; deposits in the latter are represented by FIDU and participate in capital allocation to borrowing pools under the protocol mechanism. The difference between these two paths is the scope of capital exposure: direct participants face a particular borrowing pool, while Senior Pool participants hold shares of that pool rather than a direct certificate for a particular loan. GFI does not replace either type of capital position; it serves governance and incentive functions.

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