> For the complete documentation index, see [llms.txt](https://forforest.gitbook.io/for/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://forforest.gitbook.io/for/for-en/features/3.1-finance-automatic-capital-recirculation-that-directly-links-consumption-to-regeneration.md).
# 3.1 \[Finance] Automatic capital recirculation that directly links consumption to regeneration
As noted in the preface, the “ecosystem services” provided by forests—such as water retention, soil conservation, and the maintenance of biodiversity—are externalized within the market economy and treated as having a “price of zero.” In Japan, mechanisms such as the “forest environment tax” and corporate PES (Payment for Ecosystem Services) have been introduced, but for taxpayers and consumers they remain systems whose use is difficult to see, and they are not connected to a tangible sense that nearby ecosystems are improving. Moreover, their design requires substantial coordination costs.
FoR’s defining feature is a mechanism in which everyday consumption activities automatically become a source of capital for ecological regeneration, together with tokenomics that link the environment and the economy. Through these mechanisms, users do not need to donate consciously; simply by using FoR in daily life, the system can automatically reinvest in the forest.
* **Automatically returned, nature-positive circulation of funds:** Every time a payment is made through FoR, a fixed percentage of the payment amount (10%) is automatically returned as funding for nature regeneration. This means that a “donation that is automatically returned” is embedded directly into the structure of the currency itself. Specifically, with each payment, funds separate from validator rewards are directly transferred and pooled to the address of the “Collective Wallet (Forest Restoration Fund)” as a “programmable donation.”
* **Value-linked asset allocation:** FoR’s tokenomics, the economic design of the token, defines allocation to forest resources from the outset, and is designed so that the Forest Restoration Fund is linked to the growth of the FoR economic sphere itself. In the initial stage, a portion of the total supply of FoR tokens is allocated to the fund from the beginning, adopting a structure in which future price appreciation directly increases the fund’s asset value. We plan to reinforce this function through mechanisms such as a bonding curve—a mechanism in which price changes automatically in response to demand (the amount purchased). This creates a structure in which economic success and environmental success are aligned, so that “an increase in token value” does not mean that “only investors profit,” but rather that “an increase in token value” means “a larger budget for forest regeneration.” However, this design is intended to function from Phase 2 onward, when FoR is backed by liquid assets. In Phase 1, when FoR operates as an internal point system, the scale of the fund is measured by the total amount circulated itself, and does not assume a price in an external market.
The pooled funds will, in the future, be distributed to activities and stewards who care for forests at the local level. In this way, the underappreciated value of nature in the market is made visible, and a pathway is established for funds to reach local actors.
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