The Factom token is a tradable right to obligate the Factom protocol. The original supply of Factoids was set by the software token sale. Once the full Factom protocol is running, Factoids will be issued at a fixed rate to the servers that run the protocol. For now, until the protocol is completely deployed, no new Factoids will be issued.
Current Factoid supply: 8,753,219 FCT
To use the Factom protocol, Factoids are converted to Entry Credits (EC). EC are used to make entries into the Factom blockchain. Once a Factoid is used, the right is gone. The right to write into the Factom protocol is generated by those parties running it. This right is ended by those using the protocol. The idea is to align incentives so that those that run the protocol are rewarded if and only the protocol is valuable.