Why is FORSAGE not a Ponzi?
What is a Ponzi scheme?
A Ponzi scheme – is a planned fraudulent operation that has an obvious outcome. It’s a bubble that will inevitably burst for a number of reasons:
- Firstly, in a Ponzi scheme, old participants get paid with the money from new participants. Sooner or later the scheme operator decides to pull it to keep their profits. It’s mathematically impossible for this scheme to go on forever anyway.
- Secondly, a Ponzi scheme is always centralized! Every pyramid has an operator who can push the proverbial button to stop payouts and claim all the money. Once that happens, the pyramid is done.
Why is FORSAGE not a Ponzi scheme?
FORSAGE doesn’t have a single thing in common with the scheme above:
- All transactions are made between users: from wallet to wallet;
- The FORSAGE smart contract balance is always zero;
- FORSAGE doesn’t have an administrator who could terminate the project;
- FORSAGE is 100% decentralized;
- Investment math doesn’t apply here, what’s more, there is no investment to speak of.