Perpetual Preferred NFT

The Perpetual Preferred NFT is a tokenized yield instrument representing a long-term position in the DAO’s treasury growth. Holders receive a fixed baseline yield (e.g. 10% APY) distributed in $OKFUND

DAO knobs (you decide these each series)

  • N — NFTs issued in the series

  • P — price per NFT (USD)

  • term_days — staking term (e.g., 180, 270, 365)

  • b_annual — baseline APR target (e.g., 10% = 0.10)

  • X_total — max $OKFUND tokens the DAO agrees to issue for this period (the dilution cap for the whole DAO, or for this series; pick one and state it)

  • ε — safety haircut on the reference price (e.g., 10–20%)

  • P_ref_src — reference price source: “tNAV (TVPT)” or “market VWAP”; we’ll use the lower, then haircut

Reference price used to fix tokens upfront

Pick a conservative reference price to convert the baseline USD value into tokens:

Pref,raw=min⁡( TVPTcurrent, VWAP7d ),Pref=Pref,raw⋅(1−ε)P_{ref,raw}=\min\big(\,TVPT_{current},\ VWAP_{7d}\,\big),\qquad P_{ref}=P_{ref,raw}\cdot(1-\varepsilon)

Using tNAV (backing) keeps you conservative even if the market spikes.

Baseline value for the chosen term

bterm=bannual⋅termdays365b_{term}=b_{annual}\cdot\frac{term_{days}}{365}

Baseline USD value per NFT:

VperNFT=bterm⋅PV_{perNFT}=b_{term}\cdot P

Tokens per NFT before caps

RperNFT,raw=VperNFTPref,Rtotal,raw=N⋅RperNFT,rawR_{perNFT,raw}=\frac{V_{perNFT}}{P_{ref}},\qquad R_{total,raw}=N\cdot R_{perNFT,raw}

Scale to the DAO’s dilution cap

Let X_total be the maximum tokens DAO will issue during this term (either for this series or overall). We scale rewards so we never exceed it.

s=min⁡ ⁣(1, XtotalRtotal,raw),RperNFT=s⋅RperNFT,raw,Rtotal=s⋅Rtotal,raws=\min\!\left(1,\ \frac{X_{total}}{R_{total,raw}}\right),\qquad R_{perNFT}=s\cdot R_{perNFT,raw},\qquad R_{total}=s\cdot R_{total,raw}

Daily emission per NFT (this is what OpenCardinal needs)

Reward_per_day=RperNFTtermdaysReward\_per\_day=\frac{R_{perNFT}}{term_{days}}

(And for the pool total: R_total / term_days.)

Worked examples (with realistic numbers)

Below I use the same inputs twice: once for 12 months, once for 6 months, to show the linear effect.

Inputs (DAO picks):

  • N = 100 NFTs

  • P = $150

  • b_annual = 0.10 (10% baseline)

  • term_days = 365 (example A) or 180 (example B)

  • Snapshot prices (illustrative, replace with live):

    • TVPT_current = $0.001405

    • VWAP_7d = $0.00160

  • ε = 20% → P_ref = min(0.001405, 0.00160) × 0.8 = 0.001124

  • Dilution cap for the series: X_total = 300,000 OKFUND

    • (DAO can instead set X_total for the whole DAO and allocate a sub-budget to this series; the math is identical.)

A) 12-month series (365 days)

  1. Baseline for term b_term = 0.10 × 365/365 = 0.10 → V_perNFT = 0.10 × $150 = $15

  2. Raw tokens per NFT R_perNFT,raw = $15 / $0.001124 ≈ 13,352 OKFUND

  3. Raw pool R_total,raw = 100 × 13,352 = 1,335,200 OKFUND

  4. Scale to cap s = min(1, 300,000 / 1,335,200) ≈ 0.2247 R_perNFT = 13,352 × 0.2247 ≈ 2,999 OKFUND R_total = 300,000 OKFUND (exactly at the cap)

  5. OpenCardinal daily value Reward_per_day = 2,999 / 365 ≈ 8.22 OKFUND per NFT per day

What users see in the UI: ~8.22 OKFUND / Day per staked NFT for 12 months. Upside if price rises above P_ref; downside if it falls. Tokens are fixed.

B) 6-month series (180 days)

  1. Baseline for term b_term = 0.10 × 180/365 ≈ 0.04932 → V_perNFT ≈ 0.04932 × $150 = $7.40

  2. Raw tokens per NFT R_perNFT,raw = $7.40 / $0.001124 ≈ 6,585 OKFUND

  3. Raw pool R_total,raw = 100 × 6,585 = 658,500 OKFUND

  4. Scale to the same cap X_total = 300,000 s = min(1, 300,000 / 658,500) ≈ 0.4557 R_perNFT = 6,585 × 0.4557 ≈ 3,000 OKFUND R_total = 300,000 OKFUND

  5. OpenCardinal daily value Reward_per_day = 3,000 / 180 ≈ 16.67 OKFUND per NFT per day

Same cap, shorter term → higher daily rate so totals still hit 300k.

Policy notes the DAO should include

  • Single source of truth for dilution: X_total is the only issuance for this series (or entire DAO, if you choose). If you also emit outside the pool, subtract that budget from X_total first.

  • Reference price discipline: Use the lower of tNAV and 7-day VWAP, then haircut (ε). This prevents over-issuance in bull spikes.

  • If you can’t reach baseline 10% under the cap: you have three levers, in this order:

    1. Lower N (fewer NFTs)

    2. Lower b_annual for this series

    3. Raise P (higher mint price means fewer tokens needed per NFT)

  • Upside/Downside: Rewards are token-fixed; USD value floats with OKFUND price. If treasury and price grow, holders realize >10%; if price falls, realized USD is <10%.

FAQ: How Perpetual Preferred NFT Work

Q1: What are Perpetual Preferred NFT?

Perpetual Preferred NFT that represent participation in the DAO’s treasury. Each NFT can be staked for a defined period (3–12 months) to earn $OKFUND token rewards, funded directly from the DAO’s treasury emissions.

These rewards are fixed in tokens, not USD — meaning:

  • If the $OKFUND price rises → your actual return in USD increases.

  • If the price falls → you still get the same number of tokens, but the USD value is lower.

This makes Perpetual Preferred NFT behave a lot like crypto-backed savings bonds or treasury certificates.

Q2: How does staking work?

When you stake your NFT on OpenCardinal, it locks for a specific period (for example, 6 or 12 months). During this time:

  • You cannot transfer or sell the NFT.

  • You earn a fixed daily reward in OKFUND tokens.

  • Rewards are streamed linearly — the same amount every day.

After the staking term ends, there’s a 30-day cooldown where rewards stop, and you can unstake or restake into the next pool.

Q3: What’s the baseline return?

The DAO targets a baseline yield of ~10% per year, calculated at the current $OKFUND price when the pool starts.

That means:

  • The DAO decides: “We want holders to earn about 10% of their NFT’s value in tokens this year.”

  • The number of $OKFUND tokens needed to reach that target is calculated once and locked into the staking pool.

The daily reward rate is then automatically computed so it matches that total over time.

Q4: Who decides the exact numbers?

All parameters are set and approved by the DAO before each staking pool launch:

  • Number of NFTs in the pool

  • Lock duration (e.g. 3, 6, or 12 months)

  • Baseline yield target (usually 10%)

  • Reference price used for token calculations (based on Treasury Value per Token, or market VWAP)

  • Dilution cap — the maximum number of $OKFUND tokens the DAO will issue during that staking period

This keeps the system transparent, predictable, and community-governed.

Q5: What is the dilution cap and why is it important?

Because $OKFUND is a treasury-backed token, minting too many new tokens dilutes existing holders.

To prevent that, the DAO agrees on a dilution cap, called X_total, which limits how many $OKFUND tokens can be issued in a given period (for example, 300,000 over 6 months).

If the calculated pool rewards would exceed that cap, the DAO either:

  • Reduces the number of NFTs in the pool,

  • Lowers the yield for this round, or

  • Extends the staking period.

This ensures each reward series stays sustainable and treasury-backed.

Q6: How is my reward amount calculated?

The DAO calculates your reward in OKFUND using this formula:

RperNFT=bterm⋅PPrefR_{perNFT} = \frac{b_{term} \cdot P}{P_{ref}}

Where:

  • b_term = baseline return for the staking term (e.g. 10% for 12 months, or 5% for 6 months)

  • P = NFT mint price (USD)

  • P_ref = reference price of $OKFUND (usually the lower of Treasury Value per Token and 7-day market average, minus a safety haircut)

Then your daily reward shown in OpenCardinal is simply:

Rewardper day=RperNFTtermdaysReward_{per\ day} = \frac{R_{perNFT}}{term_{days}}

This is what you’ll see on the staking dashboard — for example: “8.2 OKFUND / Day” per NFT

Q7: Where do the staking rewards come from?

The staking pool is pre-funded by the DAO Treasury.

When a pool is created, the DAO transfers the agreed R_total amount of OKFUND into the reward vault. That vault automatically releases rewards daily to stakers, until it’s empty or the pool ends.

Q8: What happens when the staking term ends?

Once your staking period (e.g., 6 or 12 months) finishes:

  • The NFT moves into a 30-day cooldown.

  • You can unstake and withdraw your rewards anytime during or after the cooldown.

  • You can then restake the same NFT in the next pool when it opens.

Q9: Do I get new NFTs every time?

No, you don’t need to mint new NFTs every time.

You can reuse your existing Perpetual Preferred NFTs in future staking pools.

When a new pool opens:

  • You unstake your NFT from the old one.

  • Stake the same NFT again in the new pool.

Each staking period is called an epoch — you can think of it like a new “season” with updated rewards and duration.

Q10: Why reuse the same NFTs instead of issuing a new series?

Reusing the same NFT collection keeps everything clean and efficient:

  • The same holders can continue compounding rewards without minting new NFTs.

  • The NFT always represents your stake in the treasury — it doesn’t expire.

  • Only the reward pools change each cycle.

However, the DAO can still choose to mint a new “Series II” for branding or to attract new participants.

Q11: What happens if the price of $OKFUND changes during staking?

The reward amount in tokens stays exactly the same — it’s fixed when the pool starts.

But the USD value of your rewards changes with the market:

  • If OKFUND price goes up → your rewards are worth more.

  • If OKFUND price goes down → rewards are worth less.

This makes staking behave like a bond denominated in $OKFUND, not in USD.

Q12: What if the DAO treasury grows faster than expected?

If the treasury’s BTC and asset holdings increase significantly, the DAO can:

  • Raise the next pool’s baseline yield (e.g., from 10% → 12%), or

  • Increase the reward budget (X_total) for the next epoch.

That way, treasury performance directly benefits stakers in the following cycle.

Q13: What if the DAO treasury shrinks or OKFUND price drops?

If the DAO experiences a downturn, or token value drops:

  • The DAO may reduce the next pool’s rewards or pause new emissions to protect backing.

  • Already staked users will still receive their full rewards for the current pool — the funds are already locked.

This ensures current stakers aren’t affected mid-term.

Q14: How is this different from normal NFT staking or liquidity farming?

Unlike typical NFT staking where rewards are arbitrary:

  • Perpetual Preferred NFT are backed by DAO treasury assets (BTC, etc.).

  • Rewards are pre-calculated, locked, and capped to prevent inflation.

  • The DAO operates under transparent, measurable monetary policy.

Think of it as a community-run fixed-income instrument — but tokenized.

Q15: Who can verify the pool or treasury data?

Everything is on-chain:

  • Treasury value (in BTC and digital assets) is tracked on the Token Metrics dashboard.

  • Circulating vs total supply, yield, and rebase data are publicly visible.

  • The reward pool’s funding, emission rate, and duration are visible on OpenCardinal.

Nothing is hidden — it’s transparent, auditable, and DAO-approved.

Q16: Can I sell my Treasury Note NFT while it’s staked?

No — while staked, the NFT is locked in the staking contract. After the lock term and cooldown, you can:

  • Unstake and sell it freely, or

  • Restake it in the next epoch.

This ensures staking positions can’t be traded mid-term (avoiding secondary-market speculation on locked rewards).

Q17: Is there a penalty for early unstaking?

If the pool is set with a minimum stake duration, unstaking early will forfeit the remaining rewards — you’ll only keep what was accrued until that point. The NFT then enters cooldown as usual.

The DAO can optionally enforce a hard lock (no early unstake) depending on policy.

Q18: Will future pools have higher or lower returns?

It depends on:

  • Treasury growth (more BTC = higher backing = potentially higher rewards)

  • Circulating supply growth (dilution = potentially lower rewards)

  • DAO policy decisions for the emission cap

Returns are dynamic across epochs, but predictable within each pool.

Q19: How are rewards calculated for future pools?

The DAO re-runs the same formula using updated metrics:

Pref,new=min⁡(TVPTnew,VWAP7d)⋅(1−ε)P_{ref,new} = \min(TVPT_{new}, VWAP_{7d}) \cdot (1 - \varepsilon)
RperNFT,new=bterm,new⋅PPref,newR_{perNFT,new} = \frac{b_{term,new} \cdot P}{P_{ref,new}}
Rtotal,new=N⋅RperNFT,newR_{total,new} = N \cdot R_{perNFT,new}

If the new reward total exceeds the DAO’s dilution cap, it is automatically scaled down. That way, every future pool stays within emission and backing limits.

Q20: TL;DR — How does this whole system work?

  1. DAO issues NFTs that represent a stake in the treasury.

  2. NFT holders stake them for a set period (e.g., 6–12 months).

  3. DAO locks a fixed number of $OKFUND tokens into the reward vault.

  4. Stakers earn linear daily rewards for the term.

  5. After cooldown, holders can unstake or restake in the next pool.

  6. DAO updates metrics and adjusts next pool’s rate based on treasury growth and dilution caps.

In short: NFTs = long-term participation in $OKFUND’s treasury growth. Pools = epochs of fixed-yield staking, backed by DAO-approved emissions.

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