# $ROOTS Token
Fitting for the Forest Financial ecosystem, $ROOTS is a new token designed to generate a guaranteed profit if held **long-term**. This offers sustainable, low-risk, medium rewards for investors.
A treasury of stablecoins will be created which functions as the liquidity pool for this token. By capitalizing on the purchasing and selling of the token, and investing the liquidity pool into safe investment options, we guarantee an increase in token price over time.
## **Purchase**
The $ROOTS token can only be bought from the Forest Financial protocol. Our [internal swap platform](/docs/fundamentals/swap-mechanic.md) facilitates swapping $FOREST for $ROOTS and vice versa.
*The **backing price** is the total value of the $ROOTS treasury divided by the tokens in circulation.*
Every time $ROOTS is bought from the protocol a new token is minted. Every time someone sells $ROOTS, it is burned.
## Supply & prices
* The buy price is the Backing price times **1.2** *plus* the Growth Factor.
* The sell price is the Backing price times **0.9** *minus* the Growth Factor
### Treasury & starting supply
The $ROOTS treasury holds USDC, which increases as more $ROOTS are minted.
* Starting treasury USDC: $1000
* Starting supply: 100
* Starting price: $10
{% hint style="info" %}
Only a small treasury size is required to kickstart $ROOTS.
{% endhint %}
*The starting supply of $ROOTS is inaccessible and won't be touched.*
## **Growth Factor**
The Growth Factor is the value of two times the number of tokens bought over the last five days, divided by the total number of tokens existing five days ago and capped at a maximum of 0.3.
Meaning that the Buy price is a maximum of 1.5 times the Backing price and the Sell price is a minimum of 0.6 times the Backing price.
## **Increasing the Backing price**
As the price of this token is promised to only go up, we need to explain what mechanics make this happen.
The protocol increases the Backing price by:
1. Capitalizing on the difference of the Buy price and Sell price vs. the Backing price.
2. Getting a return on investment on the $ROOTS treasury, which grows as more tokens are minted.
## **The ecosystem**
In order to buy $ROOTS you will need the $FOREST token.
By purchasing other items in the Forest Financial ecosystem, you will benefit from discounts on the **buy- & sell price**.
| | Discount % |
| ---------------- | ---------- |
| Own 1+ YieldTree | 5 |
| 1 Evergreen NFT | 0,5 |
| 1 Tree NFT | 1 |
| 1 Sapling NFT | 0,5 |
| 1 Seed NFT | 0,25 |
The NFTs are stackable and are only required to be in the wallet of the investor. Connected Core NFTs count as well.
{% hint style="warning" %}
Every wallet has a maximum discount of 6% on the Buy and Sell price of the $ROOTS token.
{% endhint %}
## **Internal swap mechanic**
To further increase the benefits of existing investors, unclaimed $FOREST generated by YieldTrees can also be swapped for $ROOTS via our swap mechanic. This is tax-free and provides a way for the investor to grow their capital with generated $FOREST.
Because of how $ROOTS works, this method can not be used as a quick attempt to avoid claim tax.
How does Forest Financial as a whole grow from $ROOTS?
1. Fees from our internal swap system are directed towards the main treasury and the $FOREST/AVAX liquidity pair.
2. Added exposure of $FOREST as it is a requirement to purchase $ROOTS.
## **Risk profile**
The $ROOTS token is created for low-risk investments. Due to the nature of stability of stablecoins, the only possible risks are the following:
* Contract hacks
* USDC depegging & crashing
## **Find out more**
Watch this [video](https://www.youtube.com/watch?v=eFICxhkAU8s) as Pim, our founder, takes you through our $ROOTS calculator, to highlight how safe this investment opportunity will be.
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