Boosting the flywheel

Flywheel assumes that there will be some premium on $BFD. This will happen because there will be no way to mint $BFD, and the premium will exist due to the factors outlined in Stage 2.

At this point, our main goal is to capture the premium and grow the treasury. To achieve this, we introduce a simple yet effective mechanism that increases buy pressure and trading volume(and therefore fees apr) for $BFD.

Every few weeks/months, we will conduct additional gatherings. However, access to these gatherings will be restricted to users who stake $BFD for a predetermined period. For example, if we use a 1-week window, we will snapshot holder balances daily and then allocate participation rights based on their holdings.

Example Scenario:

• DEX price: $1.20 per $BFD

• Treasury backing: $1.00 per $BFD

• Premium: 20%

We will allow snapshotted users to mint $BFD at $1.10. This increases the treasury’s backing by more USD than the equivalent value of minted tokens. People will always buy into these sales because the sale price will consistently be below the DEX price.

This ensures that:

• Participants can always capture a premium (by selling tokens or acquiring more to farm additional rewards).

• The treasury continuously captures the premium, receiving more than $1 of value for less than $1 worth of emitted tokens.

One of the Core-parts of this mechanic is to NOT make it toxic, that mean's that the protocol will not capture ALL of the premium at all times, because doing this the protocol will KILL all price-action associated with the upside that the $BFD token could give.

At one point we will stop using this mechanic and allow the token to go into a free-ride, without capturing premia, we strongly believe that at some point it would be crucial for the protocol to allow the token strive by itself