Tri-phased Evolution
Blackrock’s approach:
Blackrock will not implement Syncus’s 15% sell tax mechanism. And we will keep the bonding mechanism to ensure continuous treasury growth. How will we solve the dilution problem during ETF bonds and staking? The answer is debase!
Yes, you guys have heard of Ohm with rebase since its inception. So why debase?
Debase: reduce in quality or value; degrade. In the context of BlackrockFund, tokens helds outside the staking pool will lose value in real time.
Debasement will help reduce short term traders of $BTC and incentivize more long term holding, as well as controlling the supply for $BTC. Non stakers of $BTC and the LPs will be subjected the debase mechanism. Yes you are right, since the LP also gets debased, the price will go up at the debase %. The debase rate will be the same as the ETF bond tokens being released to markets + the staking rewards.
Debased supply = inflationary staking rewards + BlackrockFund ETF bonded supply
That’s the goal of our protocol. To achieve this goal, we will split the protocol into 3 stages:
1. Expansion
At our first stage, we want to attract capital and bootstrap the protocol.
To do this we will incentivize bonding of BlackrockFund's ETF Bond with incentives from a staking pool, our very own 401(k) plan!
Therefore, we will have a high apy for stakers at first. The debase rate will be slightly lower than the inflationary during this period. Staking rewards will be at 100% $BTC emissions.
BlackrockFund's ETF Bonds will be vested and be claimable after 5 days. Bonds can be issued at a lower cost than market price and be an opportunity for arbitrage.
We will introduce a 2-choice withdraw mechanic for the 401(k) staking pool:
Quick: instant, penalty of 10%.
Slow: 48 hours, no withdraw penalty.
2. Consolidation
As the treasury grows more and more, we will slowly decrease the emissions rate and adjust debase rate so that the inflationary reaches negative %. The staking rewards will be split between $BTC emissions and $ETH 50-50. This is when we’ll deploy our treasury and share revenue profit to stakers.
3. Valhalla
The protocol enters the final and best state with a stacked treasury that prints sustainable revenue for $BTC stakers. On top, the debase mechanism and tax will make $BTC net deflationary and increasing in net value. The flywheel will be in full effect as there is no longer token emissions and rewards will be 100% in $USDC. New value drivers can emerge: strategic investments, treasury farming, and governance-led initiatives that unlock additional utility for the $BTC token.
For users that bond and stake early, they will likely be able to exit through redemption program, forecasted to be higher than market price due to our rebase and deflationary system.
The whole system is designed to tax those looking for a quick flip, transferring more intrinsic for loyal bonders and stakers of BlackRock $BTC. For those at the end, VALHALLA:
Value
Accrued
Lucratively
Highest
And
Limited
Liability
Achieved
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