> For the complete documentation index, see [llms.txt](https://templardao-finance.gitbook.io/templardao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://templardao-finance.gitbook.io/templardao/protocol-internals/initial-network-state.md). # Initial Network State **Our initial goal is not to find a stable price.** This may seem antithetical to our currency aspirations, but we ensure you it is not. [TemplarDAO](https://templar.finance/#/) can be tuned to optimize for different things. The main tradeoff is volatility and profitability versus stability and consistency. With volatility and profit comes growth; this is what we want early on. With tight policy and scale, Templar should function well as a stable asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, Templar has the potential to act as a wealth creation machine. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created. ## Alpha State\* The initial network features a one-way treasury (money goes in, none comes out), the bonding contract (through which supply increases and profits are produced), and the staking contract (where profits are distributed). The following are the initial policy states: * **BCV** BCV varies based on bond types. It is tuned regularly by the Policy team to meet the protocol goals. For example, if the protocol wants to accumulate more liquidity into its treasury, it can lower the BCV for liquidity bonds to increase their bond capacity. * **Bond vesting term** It is set to approximately five days for all bond types. * **TEM distribution** Every time someone purchases a bond, the proceed will go to the Templar treasury. A corresponding amount of TEM will be minted and distributed to three parties: * Bonder The bond purchaser will receive the quoted amount of TEM linearly over the vesting term. * DAO The DAO receives the same amount of TEM as the bonder. This represents the DAO profit. ## --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://templardao-finance.gitbook.io/templardao/protocol-internals/initial-network-state.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.