🔱GUILD
Token details.
Name: GUILD
Type: ERC20.
Hard Cap: None.
Function.
GUILD tokens are 3's accounting method for external liabilities. Holders of GUILD (and by association; 3Bonds), are considered to be Creditors of 3.
'Phase driven, GUILD tokens begin life without backing, collectively gaining it over time as the ecosystem matures: acquiring more and more participants and contributors, until it achieves full backing for all issuances on the host chain, in the form of that host chains native asset.'
The following descriptions serve to convey the purpose and potential of the GUILD token as it exists within 3's ecosystem, in as brief a manner as possible.
Issuance.
GUILD tokens are only issued when value is contributed (exchanged) via the GSF or GuildBonds.
1x GUILD is issued for each 1x USD contributed in the form of a target (whitelisted) asset.
USD valuations reflect the target assets market rate at the time of the contribution.
This exchange rate may only persist for as long as it takes 3 to establish its planned liquidity engine(s) and official secondary markets.
Convertibility.
The Reserve is responsible for growing GUILD convertibility. To learn more, I suggest researching the following:
The Reserve (High-level overview of Protocol 3).
The DeFi Trident (3's Financial Architecture overview).
Convertibility (A list of PSU's designed to facilitate GUILD adoption through convertibility).
Governance.
Debt Ceiling: Overview.
While a hard cap does not exist, debt ceilings will be maintained indefinitely, constrained by the following thresholds:
The initial debt ceiling has been set to 5 million GUILD.
Thereafter, the ceiling will lift by 10 million GUILD until 100 million has been exceeded.
Thereafter, the ceiling will lift by 100 million GUILD until 100 billion has been exceeded.
Thereafter, the ceiling will lift by 1 billion GUILD with each consecutive ceiling.
There shall be no time limit imposed between ceilings or their ability to be voted on.
Issuances may be frozen if a protocol defined number of vote weight is obtained.
The above debt ceiling thresholds will be hard coded.
Governance vote: Raise ceiling.
The GUILD debt ceiling will for the most part be automated, requiring only two human triggers:
Once a ceiling nears its limit, an option will appear on the protocol governance section of 3's web-app. Here, 3Fi token holders allocate vote weight to 'Raise'.
'Hold' is active and in effect by default.
The vote is dynamic. Meaning the ceiling will 'Hold' until a protocol specified number of 3Fi tokens have voted 'Raise'. 'Raise' only needs to meet the conditions long enough for a single user to capture the vote state on-chain which approves the upgrade. (Trigger 1)
Once approved, anyone may execute the transaction required to raise the ceiling. (Trigger 2)
COST - It should be noted that while the endeavour to 'Raise' the ceiling persists, vote weight (VW3) allocations must remain in the designated contract until the state change has been captured. Time spent in this contract equates to the COST of the raise as the weight may not be allocated to other areas of the ecosystem that may otherwise deliver sources of revenue.
Governance vote: Freeze issuances.
Like the raising of the debt ceiling, freezing issuances is mostly automated, requiring only two human triggers to freeze and unfreeze:
The ability to freeze shall always be present on the protocol governance section of 3's web-app. Here, 3Fi token holders may allocate vote weight to 'Freeze issuance'.
'Normal issuance' is active and in effect by default.
The vote is dynamic. Meaning that if at any time the amount of weight meets or exceeds the protocol defined requirement, any user may capture the state on-chain to approve the freeze.
Once approved, anyone may execute the transaction required to freeze issuance.
Vote weight must remain allocated to maintain the weight requirements set by the protocol. Should the allocated weight drop below the protocol defined threshold, anyone may again capture the state change on-chain, allowing a second transaction to be executed that will un-freeze issuance, reverting the state to 'Normal issuance'.
COST - It should be noted that while the endeavour to 'Freeze' persists, vote weight (VW3) allocations must remain in the designated contract to maintain the state change regardless of its on-chain capture. Time spent in this contract equates to the COST of the freeze as the weight may not be allocated to other areas of the ecosystem that may otherwise deliver sources of revenue.
Micro Bonds.
Why do GUILD tokens constitute as micro bonds?
When considering the lifecycle of 3Bonds, GUILD represent the final stage before settlement completes. In this way, GUILD are each micro-bonds with no define maturity. Additionally:
Only GUILD may (given the correct lot size) mint a 3Bond;
Each 3Bond being exactly 10,000 GUILD tokens.
Currency.
How could GUILD tokens become DeFi's Reserve Currency?
Anti-fragile.
GUILD are designed to be anti-fragile from the perspective of a currency (not an asset). To best explain this, I will share our rollout plan below, divided into specific phases, though it should be noted, each phase is not strictly definitive; they may overlap considerably.
Inception.
At inception, GUILD tokens have no value, no backing. The objectives during inception are to:
Incentivise GUILD minting in a sound, sustainable manner, (Only through contribution can GUILD be acquired).
Distribute 3Fi tokens through GUILD issuances, (Managed by the 3Fi distribution model, which allocates 3Fi tokens per GUILD, based upon the total number of outstanding GUILD).
Meet and/or exceed the Reserve Requirements (inception) Curve (RRC1). (RRC1 has two KPI's: 10,000 3Bonds and 10% backing at 0.0005 ETH per Bonded GUILD).
Adolescence.
The transition to adolescence shall occur when both RRC1 KPI's have been achieved. Similar to previously described governance functions, the transition will be triggered by:
When both KPI's are satisfied and is captured on-chain by a user executing a transaction to solidifying a confirmation; yielding permission to initiate transition.
With permission granted on-chain, anyone may then execute the transaction required to initiate the transition from RRC1 to RRC2.
When transition to RRC2 occurs, GUILD liquidity mechanisms are expected to be in place; allowing a free floating GUILD valuation to compete against 'The Reserve' protocols backed valuations.
Objectives during adolescence are to:
Continue to incentivise GUILD minting in a sound, sustainable manner,
Continue 3Fi token distributions through GUILD issuances,
Meet and/or exceed the Reserve Requirements (adolescence) Curve (RRC2). (RRC2 has two KPI's: 100,000 3Bonds and 50% backing at 0.0005 ETH per Bonded GUILD).
Maturity.
The transition to maturity shall occur when both RRC2 KPI's have been achieved. Similar to previously described governance functions, the transition will be triggered by:
When both KPI's are satisfied and is captured on-chain by a user executing a transaction to solidifying a confirmation; yielding permission to initiate transition.
With permission granted on-chain, anyone may then execute the transaction required to initiate the transition from RRC2 to RRC3.
A transition to RRC3 will mark the solidification of The Reserve's backing requirements. As regression to earlier curves will be impossible, any drop in outstanding bonds will result in a corresponding drop in the reserve requirement based upon the RRC3 curve.
Other expectations during the maturity phase are for:
GUILD issuances will transition away from GuildSwaps FARM.
3Fi token distribution will end.
The fight for wider adoption to begin as 3 moves closer to meeting and/or exceeding Reserve Requirements Requirements (maturity) Curve (RRC3).
Adoption.
There are a great many conditions and requirements for adoption to manifest. Rather than listing them all, the most important KPI's are listed below to assist us in understanding if/when adoption occurs:
3Fi tokens are fully distributed.
RRC3 is the active curve used by The Reserve protocol.
Aged 3Bond yield consistently exceeds Adolescent 3Bond yield.
GUILD valuations consistently exceed the value of 1x stable.
stGUILD settlements are:
Real-time under a million stables,
Near real-time over a million stables and
In-good-time for balances in excess of ten million stables.
Adding zero's onto each bracket above solidifies adoption further.
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