DAO Treasury
Backing of INUKO
The treasury is an accumulation of funds to back the circulating supply of INUKO. What this means is that for every circulating INUKO there will be a certain amount of funds allocated from the treasury as backing thus forming a backing price for INUKO.
The back price is the minimum price of which would trigger the governance committee to issue a proposal to the community to buy back INUKO from the market for burning in order adjust market price back to the levels of the backing price.
The basic formula for the backing price:
Where circulating supply of INUKO is the remaining amount of INUKO left after a burn event.
This occurs when the market price is less than the backing price for an extended period of time.
When the fall below scenario occurs, the governance committee will brainstorm and propose several strategies in which the treasury can be utilised to bring up the market price back to the level of the backing price.
It could be a simple buyback from Pancakeswap, deploying an inverse bond or even hiring of a market maker to manage the price. Ultimately all INUKO procured will be burned (send to the dead wallet address).
Last modified 5mo ago