We have developed a system that will allow $STAKE to grow in a slow and controlled rate, as opposed to other rebase projects.
Instead of increasing our supply every half hour, all rewards are paid out from the rewards pool, and once a threshold is crossed where vaulted rewards dip below a 21 day anticipated payout, only then will the vault be rebased to increase supply.
We utilize a global NERD percentage to anticipate the liability of the rewards pool by analyzing the values of 1%-3% rewards on GFV vs NFV. This allows us to mainatin an accurate assumption as to when minting is necessary, as opposed to increasing the supply every half hour like other rebase protocols.
The Minting thresholds are as follows:
- If faucet liability for 21 days >= 67% of the vault, the minting will happen.
- If faucet liability for 21 days <= 50% of the vault, the minting will stop.
At the point minting, only 5%/48 = .104% of total supply will be increased every half hour until we are above threshold. As daily pay out is 3%, the rebase will increase 66% faster to rise back above threshold.
Max supply that can ever be reached is 5 Million. While this is very high, and we doubt we will ever reach this level, should that day come, a global NERD will be set to 0, causing all rebase rewards to temporarily pause. At that time, Buy Back and Burns from the Treasury, as well as Burns from the lottery will continue to lower supply once again. At the point where 25% has been burned, the NERD will be reset and rebase will then again continue.
Flame is deflationary, and ever buy and sell incurs a 4% tax.
2% will go to $FLAME liquidity, and 2% will be used to buy back and burn $FLAME.