Price & tNAV Model

Treasury Net Asset Value (tNAV)

tNAV represents the intrinsic value of the DAO’s holdings.

$$tNAV_{\text{per token}} = \frac{\text{Total value of treasury assets}}{\text{Circulating supply of } \$OKFUND}$$

This provides a transparent measure of the backing per token. tNAV is updated as the treasury acquires or holds assets such as BTC, SOL, stocks, or ETFs.

---

Market NAV (mNAV)

mNAV reflects the market price of $OKFUND tokens as traded in liquidity pools. Unlike tNAV, which is derived from the DAO’s balance sheet, mNAV is determined by supply and demand in the open market.

---

Premium and Discount Dynamics

The difference between mNAV and tNAV is expressed as:

$$\text{Premium/Discount (\%)} = \frac{mNAV - tNAV}{tNAV} \times 100$$

• Premium – if mNAV > tNAV, the token trades above its intrinsic backing.

• Discount – if mNAV < tNAV, the token trades below intrinsic backing.

Example:

• tNAV = $0.00120

• mNAV = $0.00100

$$\frac{0.00100 - 0.00120}{0.00120} \times 100 = -16.6\%$$

The token is trading at a 16.6% discount relative to treasury value.

---

Relationship Between tNAV and mNAV

While tNAV and mNAV are not directly linked in real time, they are connected fundamentally:

• tNAV = backing — the DAO’s assets per token.

• mNAV = market price — what participants are willing to pay.

• Dislocations (discounts or premiums) occur naturally in low-liquidity markets or due to sentiment.

• Over time, DAO governance may deploy mechanisms to realign mNAV with tNAV.

---

Strategic Instruments

To help balance mNAV and tNAV, the DAO may use:

• Token Issuance – releasing new tokens into liquidity pools to finance additional treasury purchases.

• Buybacks – repurchasing tokens when they trade at a deep discount, reducing supply and supporting alignment.

• Liquidity Management – optimizing pool depth to minimize volatility.

These instruments help ensure long-term stability while respecting market dynamics.