Shapeshift FOX Token (FOX) is the governance and utility token of the ShapeShift platform, a borderless, cross-chain crypto trading platform and portfolio manager. The platform is designed to uphold user self-sovereignty, allowing users to acquire, send, receive, swap, and manage assets via a mobile interface or web platform. ShapeShift is a 100% self-custody platform, meaning users always control their keys. The platform does not collect personal information and adds no trading fees. The FOX token is allocated with each transaction, aiming to make trading more competitively priced.

FOX Token operates as the governance and utility token of the ShapeShift platform. It is allocated with each transaction conducted on the platform, aiming to provide more competitive pricing for users. The token allows holders to participate in the governance of the ShapeShift platform, giving them the ability to submit and vote on proposals. This decentralized model is designed to maintain user sovereignty. The total capped supply of FOX is 1,000,001,337 tokens, distributed among ShapeShift customers, employees, shareholders, the DAO governance treasury, the ShapeShift Foundation, and ShapeShift itself.

FOX Token has several potential use cases. Primarily, it serves as a governance token, allowing holders to participate in the decision-making process of the ShapeShift platform. This includes the ability to submit and vote on proposals, helping to shape the future of the platform. Additionally, the token is used within the platform to make trading more competitively priced. It can also be used to receive incentives on the platform, providing additional incentives for users to hold and use FOX Tokens.

ShapeShift was founded in 2014 as a privately held company based in Switzerland. The platform's governance and utility token, FOX, was introduced to make trading more competitively priced and to allow users to participate in the platform's governance. ShapeShift became a fully decentralized project in June 2021, open sourcing all of its source code and turning ownership and governance over to the community of FOX Token holders. The founder, Bitcoin pioneer Erik Voorhees, stated that this decentralized model aims to maintain user sovereignty.

FOX tokens, developed by ShapeShift, function as the governance token for the ShapeShift DAO (Decentralized Autonomous Organization). These tokens grant users voting rights on proposals concerning the DAO's treasury and other crucial governance matters such as approving partnerships, workstream budgets, and other initiatives. In addition to governance, FOX token holders can also employ several unique DeFi strategies to optimize the utility of FOX tokens. One of the key features of FOX tokens is the introduction of FOX Discounts, a feature that provides reduced transaction fees based on the user's FOX token holdings. This feature ensures that fees are not solely determined by trade size but also consider your FOX token holdings. For example, trades below $1,000 come with reduced fees. And, FOX token holders may experience linearly reduced trades, with a potential reduction in transaction fees for users holding 1,000,000 FOX or more. This supports the sustained utility of FOX tokens and acknowledges the community's participation.

FOX tokens function as the governance token for the DAO. They aim to contribute to liquidity provision and the facilitation of decentralized trading options. FOX token holders have the ability to vote on proposals related to the DAO's treasury and other governance matters, such as evaluating partnerships, workstream budgets, and other initiatives. Token holders may explore various DeFi strategies to comprehend the potential advantages of owning FOX. FOX tokens strive to enable single-sided staking, which could potentially mitigate the risk of impermanent loss when participating in DeFi strategies. This implies that only one asset might be required to stake and receive non-monetary rewards, potentially simplifying these positions. FOX tokens are utilized in liquidity provision and liquidity mining, with the intention of offering more flexibility and safety for potentially risk-exposed DeFi strategies. FOX tokens could also be used in lending/borrowing scenarios, allowing holders to use FOX as collateral to access non-financial resources. This could be a solution for those who do not wish to sell their FOX but instead want to borrow against it.

ShapeShift aims to provide a seamless experience for FOX token holders through a variety of features and services. ShapeShift supports a wide range of cryptocurrencies, which can help users diversify their portfolios and adapt to market trends quickly. ShapeShift has integrated an in-wallet notification service, keeping users informed about important updates. Additionally, ShapeShift has introduced FOXy, a rebasing, yield-bearing version of the FOX Token, which may provide non-monetary rewards to users. These features aim to facilitate the user experience and utilization of the features associated with FOX tokens.

The ShapeShift ecosystem provides a mechanism for receiving and allocating FOX tokens through a feature known as FOXy. FOXy is an ERC20 rebasing token that is redeemable 1:1 with FOX tokens. Users can allocate their FOX tokens in a single-sided allocation contract provided by ShapeShift on the Ethereum Mainnet. The allocated FOX tokens are then utilized by the DAO to implement various DeFi strategies, such as allocation on Tokemak. A portion of the outcomes from DAO activities is shared with FOXy holders. This combination of outcomes from DAO activities and DeFi strategies is one method of interaction with FOX tokens allocated single-sidedly. Users may allocate their FOX tokens within the ShapeShift ecosystem, which may result in the receipt of FOXy tokens. The FOXy contract adjusts holders' accounts with FOXy to reflect the activity of their allocated FOX tokens.