Token Economy & Price Instruments
Token Economy Overview
The $OKFUND token is both a governance instrument and a form of digital equity. Its value is shaped by two dynamics:
Treasury Growth – the accumulation of digital assets and ownership of projects increases the tNAV backing per token.
Market Dynamics – supply and demand in liquidity pools determine mNAV, which may trade at a premium or discount to tNAV.
This dual structure ensures that $OKFUND reflects both the underlying balance sheet strength of the DAO and the sentiment of the market.
Supply and Issuance
The DAO finances treasury growth by releasing additional $OKFUND tokens into liquidity pools. This mechanism ensures that every issuance directly contributes to expanding the treasury base. Supply is managed carefully to avoid excessive dilution and to progressively decentralize governance power over time.
Price Alignment Instruments
While short-term deviations between tNAV and mNAV are expected, the DAO may use treasury-approved instruments to support healthy alignment:
Buybacks – the treasury may repurchase tokens from the open market when mNAV trades at a steep discount to tNAV, thereby reducing circulating supply and restoring balance.
Token Burns – in cases where tokens are repurchased, the DAO may vote to permanently remove them from circulation, creating a deflationary effect and strengthening the token base.
Controlled Issuance – new tokens are released gradually and transparently into liquidity pools, avoiding supply shocks and preserving long-term confidence.
Liquidity Management – adjusting pool sizes and structures to maintain fair, efficient, and stable trading conditions.
Long-Term Alignment
These mechanisms are not intended to artificially influence price but to safeguard the integrity of the token economy. By ensuring that $OKFUND remains broadly aligned with the value of its treasury and projects, the DAO creates a credible financial instrument for long-term holders. All actions related to issuance, buybacks, or burns require governance approval, reinforcing transparency and community oversight.
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