IV.5 The backing treasury
One third of the revenue generated by the protocol is kept in stablecoin in order to be able to buy back $PHI tokens so as to guarantee a certain floor price.
This floor price is there to both protect investors and use deflationary mechanics.
Each time the backing treasury buys back $PHI tokens on the market, they will be burned and sent to the dead wallet.
This will decrease the amount of $PHI tokens available in the market and increase their scarcity.
The backing treasury can start to buy $PHI tokens in increments when the sell tax is at its maximum (50%) in order to give the token a bullish impulse for example.
Last modified 1yr ago