Why Change? The Rationale Behind $REAL
When Defactor launched, the idea of decentralized invoice factoring inspired its name. But as Defactor evolved, invoice factoring became just one piece of a much bigger vision: a fully functional toolkit for real-world assets.
According to Sharif, the $factr name had served its purpose but no longer captured the scope of the project:
The shift to $REAL wasn’t just about branding. The community had been rallying around the “Get Real” narrative at events worldwide, and the team recognized the chance to unify their messaging.
Hardened Tokenomics: From Fixed Supply to Deflationary Model
Very rarely in life does one change mean no other changes and even less so in DeFi, and with the token name change, tokenomics were also opted to be altered. $factr had a fixed supply of 300 million tokens, but the distribution left uncertainties hanging over the community particularly the fate of locked tokens.
$REAL addresses these concerns head-on by introducing deflationary mechanics. Immediately after migration, 20 million $REAL tokens were burned. Going forward, unused or repurchased tokens will continue to be destroyed, making scarcity a core principle of the ecosystem.
The governance vote that approved the migration supported ongoing buyback and burn initiatives. As Defactor generates revenue, a portion is used to purchase $REAL tokens on the open market, with half of those purchases permanently burned and the remaining going to ecosystem growth, community, and staking.
$REAL is a utility token and this deflationary model makes it a representation of the protocol’s growth.
Timing the Supply Reduction
Some in the community asked why Defactor chose to reduce supply now rather than waiting until adoption scaled further. For Adam, the answer was simple: clarity builds trust.
Future burns will be milestone-driven, tied to achievements and ecosystem growth. This way, token holders benefit not only from new features and partnerships but also from the reduced supply that follows key moments in Defactor’s journey.
Why Base? Aligning with Coinbase’s Ecosystem
$REAL is deployed exclusively on Base, Coinbase’s Ethereum Layer 2 network. This choice is strategic, primarily concerned with consolidating liquidity and building within an ecosystem poised for growth.
Still, the decision isn’t without flexibility. The Defactor toolkit remains fully compatible with any EVM chain, and even private EVM-compatible networks. Should a better chain emerge in the future, the team will naturally keep the door open for migration.
For now, the focus is clear: deepen integration with Base, support builders on the network, and further expand Defactors community.
Preventing Whale Dumps and Protecting Holders
Token migrations often raise concerns about whales offloading their holdings. Large holders may see the transition as an exit opportunity, triggering fears of sudden sell pressure and destabilized markets. To address this, Defactor accelerated all staking rewards during the migration, basically making every token fully liquid.
While holders are able to sell if they choose, it should be emphasized that it also ensures fairness
The economic effect of token migrations cuts both ways, and the resulting sell-offs can sometimes flood the market with supply, driving prices down and creating potential entry points for new buyers looking to accumulate at a discount.
Migration Made Simple & Why Liquidity Now Lives on Base
The migration from $factr to $REAL was designed to be as seamless as possible for token holders. $factr tokens were frozen in wallets, and $REAL was airdropped automatically into the same addresses on Base. Centralized exchanges such as Gate and MEXC supported the swap with their own distribution schedules, while self-custodied wallet users only needed to add the Base network and import the $REAL contract address.
As always, it is crypto best practice: only use the official contract address from Defactor’s website or trusted sources like CoinGecko, and never send tokens to anyone claiming to be part of the team.
But migration was about more than simply swapping tokens, it was also an opportunity to fix a longstanding challenge: fragmented liquidity. Under $factr, liquidity pools were spread across Ethereum, Polygon, and multiple exchanges. This opened the door to arbitrage, which was often at the expense of everyday holders.
$REAL consolidates all liquidity on Base. Existing pools on Ethereum and Polygon are being closed, with resources bridged and redeployed to Uniswap and Aerodrome, providing deeper liquidity, fairer pricing, and one unified market.
For everyday users, the impact is equally significant: one market, one price, and far fewer complexities when trading across multiple chains.
Burns and Buybacks: Driving Deflationary Value
Perhaps the most exciting feature of $REAL is the combination of buybacks and burns. Over the past two years, Defactor spent more than $450,000 USDC buying back nearly 12 million $factr tokens. With $REAL, that effort takes on a sharper edge: half of all buybacks are now burned permanently.
This creates a direct link between platform activity and token scarcity. As more clients use Defactor’s tools and more revenue flows in, more $REAL is bought and burned.
Where to Buy $REAL
$REAL is available on both decentralized and centralized exchanges. Uniswap and Aerodrome provide DEX liquidity on Base, while centralized exchanges like Gate and MEXC are supporting the migration.
While DEXs are recommended for the best prices, users should always double-check contract addresses on official sources. Over time, the team expects broader exchange support, driven organically by demand and trading volume.
Whether through DEXs or CEXs, the goal remains the same: to make $REAL accessible, secure, and aligned with the long-term vision of Defactor.
Access and Utility: Do You Need $REAL to Use the Platform?
Utility tokens always carry the risk of becoming a barrier to adoption. Defactor’s answer is pragmatic: $REAL enhances the experience but isn’t required.
New customers who hold $REAL can stake it to access Defactor’s toolkit, with potential discounts and fee-sharing models under consideration. But for enterprise clients, many of whom are entering Web3 for the first time, the tools remains accessible without token holdings.
This hybrid approach balances accessibility with strong token utility, ensuring $REAL remains central to the ecosystem without limiting adoption.
Looking Ahead: Building the Future of RWAs
The migration to $REAL is a statement of intent. By aligning the brand, hardening tokenomics, consolidating liquidity, and embedding scarcity into the model, Defactor has set the stage for sustainable growth in the RWA space.
The team is confident this foundation will not only strengthen community trust but also attract institutional players seeking reliable, transparent, and revenue-backed DeFi opportunities.
$factr becomes $REAL. This is about scaling responsibly, with tokenomics that reward belief in the project. Defactor has built the tools, the brand, and now we’re ready for the next chapter, From start to scale.
Useful Links:
- Governance Vote: https://engage.defactor.com/governance/6894907038d3dba525da1d2f
- Full Defactor Q&A: Q&A on the $FACTR to $REAL Token Migration
- Token Reveal Video: Breaking News: Defactor Launches $REAL Token on Base - YouTube
- $REAL contract address on Base: 0x0b0E6E32E4d69cB418630163574959108EdCB80E
- $REAL audit on Zokyo can be found here
- Find $REAL on Aerodrome
- Find $REAL on Uniswap
Please note: At the time of publication, the $factr to $REAL migration is still being processed by the relevant CEX's, DEX'S, and API's. We will strive to keep this document updated with the most relevant information and links, for any further queries, reach out to our team: support@defactor.com
Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial or investment advice. Nothing contained herein constitutes a recommendation to buy, sell, or hold any security or token, or to engage in any specific investment strategy. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or decisions made based on this content.
