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 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.
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:
- BCVBCV 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 termIt is set to approximately five days for all bond types.
- TEM distributionEvery 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:
- BonderThe bond purchaser will receive the quoted amount of TEM linearly over the vesting term.
- DAOThe DAO receives the same amount of TEM as the bonder. This represents the DAO profit.