A new Paradigm for Treasury-Based projects
At its core, Bera Reserve is an Olympus DAO V1 fork. We twisted the system a bit to make it sustainable long term.
OHM forks have been great at gathering capital fast but not good at keeping the sustainability for the long term. On the other hand, other FaaS (farming-as-a-service) projects have been great at keeping their ground in the long run, but struggled to gain capital initially.
At the end tho, 90% of both these 2 approaches failed because of poor treasury management, rug-pulls and/or overall unsustainability.
That’s where we come with a solution. Taking the best of both worlds and implementing new mechanics to keep the flywheel going in a sustainable way, while having the treasury being managed by historically profitable traders.
Three were the issues found in the basic Olympus DAO approach:
Infinite supply: inflating the tokens too much at a certain point pushes people to sell their rebase tokens. The solution = a max capped supply paired with a 3-phased growth plan that slowly reduces inflation until it becomes deflation.
Bonds selling: although it’s good for the treasury and the bonder who receives discounted tokens, every other holder is diluted. The solution = a DEBASING feature that offsets the dilution in the early days.…cancels it further on….and burns the supply in the last phase.
Absence of a parachute on price downtrends: whenever a general crypto market downtrend starts or some FUD is created, the price of these protocols tokens becomes really weak, easily breaking down the treasury value (RFV). The solution = a sliding scale mechanism based on market cap of the token VS RFV to prevent selling below RFV, adding a growing sell transaction tax the lower the price goes, which bolsters the treasury and burns the supply.
All of the above is meant not only to achieve sustainability in the long run, but to reward long-term holders to the expenses of short term rotatooors.
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