1. Flywheel mechanism
Genesis DAO operates on a sophisticated structure designed to create a sustainable and profitable ecosystem for its participants. Genesis will experience three phases:
1. Flywheel mechanics, a never-ending cycle:
The first phase will be driven by the Flywheel mechanics and it consists of the following steps:
a) The DAO will offer high starting APY; at launch there will be no token staked yet hence buy and stake pressure builds up.
b) The variable component of the Absolute APY starts decreasing as the token value increases as more staking follow up.
c) Some early buyers and stakers will decide to realize their profits given the high PNL. The variable component of the Absolute APY will raise back rewarding true holders even more.
d) A convenient token price and attractive absolute APY will create renewed pressure to buy and stake, thereby perpetuating the cycle.
e) In the meantime, the treasury is funded through taxes imposed on sell and unstake transactions thus giving start to marketing operations and the second phase: Growth.
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