Initial Network State

Our initial goal is not to find a stable price. VNTR DAO can be tuned to optimize for different things. The main trade off 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, VNTR should function well as a treasury asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, VNTR 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.

• VNTR distribution - Every time someone purchases a bond, the proceed will go to the VNTR treasury. A corresponding amount of VNTR will be minted and distributed to three parties:

• Bonder - The bond purchaser will receive the quoted amount of VNTR linearly over the vesting term.