Tokenomics
10B Native Tokens will be minted but not put into circulation. Our circulating supply will be initially limited to 2-8M.
We will only increase the circulating supply of Native Tokens as assets (farmland) are acquired, by a number of tokens proportional to the purchase price of the asset. Initially, we will strive to maintain $10M in the treasury. Optimal goal is $100M in the Native Token treasury.
Thus, additional tokens enter the circulating supply upon each acquisition.
Example 1
Assume 100M tokens are already in circulation. Then LANDAO acquires a new farm property for $20M. In this scenario, we would allow an additional $20M of tokens to be sold to replenish the treasury. This will increase the circulating supply of tokens by an amount proportional to the token value as follows:
$1
20M
120M
$2
10M
110M
$5
4M
104M
Example 2
Assume 90M tokens have been sold at $1 per token ($90M in Treasury). Then, an asset is acquired for $30M.
In this example, after the acquisition, there would be 40M tokens available to be sold if the value is still $1/token. This is because the LANDAO Treasury target is $100M. Since we only had $90M, there are still 10M tokens available on the market. Once the $30M property is acquired, we allow another 30M tokens to circulate, resulting in 40M available tokens.
Deflation / token burning
The DAO will burn un-circulating Native Tokens upon the acquisition of every asset. The number of tokens to be burnt will be based on the purchase price. If the purchase price was $20M, then 20M tokens will be burnt, regardless of the market value of the token. The burning of tokens is capped at 5B.
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