The token¶
What a strategy token is, what it cannot do, and what actually reaches a holder.
Supply¶
1,000,000,000 tokens, all created at launch and all placed on the strategy's bonding curve. Nothing is reserved, vested or held back for anyone.
If the strategy graduates, the curve's unsold tokens split two ways: about 20.4% of the supply goes into the pool, and about 8.16% is burnt on the spot. From then on the supply only shrinks, as the strategy burns.
Transfers¶
A strategy token cannot be sent from one wallet to another, before graduation or after. It moves in only 3 ways:
- through its own curve or, once it has graduated, its own pool, on a trade
- to the dead address, which is always allowed, since burning your own tokens harms nobody
- through the few addresses a strategy needs to work, such as the one that delivers an airdrop
This is what keeps the fees from being dodged. If the token moved freely, anyone could open a second market with no fee, on the curve's side or the pool's, and the strategy would be fed only by those who did not know.
The cost is real, and worth reading twice:
- No sending to a friend, a hardware wallet or your own second wallet.
- No lending, no bridges, no exchange listings, no wrapping.
- Nothing can be built on top unless the strategy allows it.
If you want a token you can move around, this is not one.
The burn¶
On an NFT or token strategy, every burn is the same: a sale from the shelf buys the token on its own pool, and what it buys goes to the dead address.
A holder feels the burn as buying in the pool, not as an announcement. Burns run in spaced passes, so a large sale arrives as steady buying rather than a single candle.
Price¶
No price feed, no oracle, no peg. The price is what the curve says, and after graduation what the pool says: every buy moves it up, every sell moves it down. The pool opens at exactly the price the curve closed at, so graduation itself does not move it.
Nothing ties the price to what the treasury holds. A strategy with a large treasury can trade below it, and one with almost nothing can trade far above it. The treasury is not a floor for the token and cannot be redeemed.
What a holder gets¶
On an NFT or token strategy: buying in the pool and burnt supply, once the strategy has graduated. That is the whole list. Before graduation, a holder has a token on a curve and nothing more.
On a reflexive strategy: an airdrop, in the token itself, about once an hour.
There is no dividend in ETH, no share of the fees and no claim on anything a strategy holds.