Tokenomics
10B Native Tokens will be minted but not put into circulation. Our circulating supply will be initially limited to 100M.
We will only increase the circulating supply of Native Tokens as assets are acquired, by a number of tokens proportional to the purchase price of the asset. We will always strive to maintain $100M in the 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 asset 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.
Last updated
