Floor price

Backing of DADASH

The treasury is an accumulation of funds to back the circulating supply of DADASH. What this means is that for every DADASH coin in circulation, there will be a certain amount of funds allocated from the treasury to back it, thus forming the floor price for DADASH.

The floor price is the minimum price, which would trigger the governance committee to issue a proposal to the community to buy back DADASH from the market to burn to adjust the market price.

This means the governance committee will take action if the market price falls below the floor price.

Floor price

The basic formula for the floor price:

Floorā€…price=Treasuryā€…USDTCirculatingā€…supplyDADASHFloor\medspace price = \frac {Treasury \medspace USDT} {Circulating \medspace supply \tiny DADASH}

Where the circulating supply of DADASH is the remaining amount of DADASH left that is not held by the dead address.

Circulatingā€…supplyDADASH=Totalā€…SupplyDADASHāˆ’Burnedā€…DADASHCirculating \medspace supply \tiny DADASH \normalsize = Total \medspace Supply \tiny DADASH \normalsize - Burned \medspace \tiny DADASH

Fall below scenario

This occurs when the market price is less than the floor price for an extended period of time.

Marketā€…price<Floorā€…priceMarket \medspace price < Floor \medspace price

DAO intervention

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 floor price level.

It could be a simple buyback from Pancakeswap, deploying a bond, or even hiring a market maker to manage the price. Ultimately all DADASH procured will be burned (sent to the dead wallet address).

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