Parameters
Locked values
These are fixed unless a phase change moves them. Anything still undecided is called out at the bottom.
| Parameter | Value | Note |
|---|---|---|
| Backing token | USDG | Stable denomination; backing is a price commitment |
| Underlying | Plain ERC-721 | No token-bound accounts |
| Collection eligibility | Curated whitelist | Owner-controlled, not open |
| Minimum backing | 5 USDG | Secondary floor; curation is the primary defence |
| Backing mutability | Fixed at deposit | Escape hatch is withdrawal, not adjustment |
| Withdrawal | Free, any time | Required — makes fixed backing survivable |
| Selection weight | 1e36 ÷ backing | Inversely proportional |
| Pool price | Harmonic mean + 3% | Surcharge splits 1% protocol / 2% depositors |
| Cold rebate | 0–100% of surcharge | Ramps linearly from a 60s to a 3600s gap |
| Crown tithe | 0.25% of price | From the protocol share only; disabled in Phase 1 |
| Sell-back rate | 95% of backing | Phase 1 value |
| Settlement discount | 5% | To the protocol, toggleable to depositors |
| Keep-NFT fee | 1% of position value | From the depositor's backing return |
| Fee distribution | Equal per active position | Not proportional to backing |
| Seed inventory | 20–40 positions | Owner-deposited; below 30 the draw stops feeling random |
Why the minimum is not the defence
A flood of minimum-backed positions collapses both the price and the draw distribution. With 40 positions at 80 USDG, adding 100 positions at 5 USDG drags the harmonic mean from 80 to roughly 6.83 and hands the dust about 97.6% of draw probability.
A flat minimum cannot stop that, because an attacker simply scales the count. Curated collection whitelisting is what actually bounds it — the cost of the attack becomes the cost of acquiring NFTs from a curated collection, not the cost of the minimum.
Still open
- Which collections make the initial whitelist
- Whether whitelist administration gets a timelock
- The Crown tithe rate
- The Phase 2 trigger metric
Without a timelock, adding a collection is a trust assumption users will price in. That decision is not made yet and is not presented as if it were.