Sustainment Treasury
Last updated
Last updated
The Sustainment Treasury was created to enhance the value of $DUB and boost the price of $DUBBL simultaneously.
The treasury is allocated towards secure, rigorously tested, high-quality investments that are unrelated to either Dubble DEX or the $DUB token.
A proportion of the yield, specifically 20%, generated by these investments is automatically reinvested into the treasury to promote its expansion. Additionally, 5% of all $DUB rebases that result from $DUB in LPs are also directed toward the treasury, further bolstering its growth at a consistent rate, in conjunction with the organic growth of the blue-chip assets over the long term.
To avoid detracting rewards from other holders, the remaining 80% of the yields derived from the Sustainment Treasury will be utilized to purchase Dubble and $DUB from the market, pair it, and add it to the Dubble/$DUB LP. These tokens will not be locked into veDUBBL. Furthermore, to ensure that all participants benefit from it, the protocol-owned $DUB will not opt into $DUB rebases.
Benefits:
By removing Dubble from the open market, the protocol creates a higher level of scarcity for its governance token, which already has a maximum supply.
This establishes a type of "liquidity factory" owned by the protocol. It enables the $DUB stablecoin issuer to further increase the liquidity for the benefit of all veDUBBL holders while avoiding any potential reduction in their rewards.
This will increase the yields and capital reserves of all $DUB holders since more capital is being used for farming the same amount of $DUB that is in circulation. Moreover, this is a supplementary benefit to all the other mechanisms that also serve to augment $DUB's capital reserves and relative yields.
