Pledge
The Bedrock of Trust
The Promise
The Settlement Pledge is the protocol's hard-coded, non-negotiable commitment to the holder of every GUILD token: 1 GUILD can always be settled for 1 crvUSD. This guarantee is the bedrock of trust in the 3 ecosystem, providing a definitive value floor and making GUILD a reliable medium of exchange and store of value from day one.
It is the critical mechanism that allows a new, sovereign currency to bootstrap the initial trust required for adoption.
How the Pledge is Honoured: A Managed and Equitable Process
The pledge is not a vague promise; it is an enforceable on-chain process with clear, transparent mechanics.
The Guarantee: The pledge is a smart contract function that allows any user to stake their GUILD in a dedicated Settlement Contract, making it eligible for a 1:1 exchange to crvUSD.
Pro-Rata, Parallel Settlement: The pledge honours the 1:1 rate for all users simultaneously. When crvUSD revenue enters the contract, it is automatically and proportionally allocated to all staked GUILD. For example, if the incoming crvUSD covers 10% of the total staked GUILD, every user receives crvUSD equal to 10% of their staked position.
Accrual and Fulfilment: Allocated crvUSD accrues within the contract for each user. A user can choose to withdraw their accrued crvUSD at any time. The system tracks each user's "remaining balance", the difference between their staked GUILD and their total accrued crvUSD. Subsequent revenue passes then allocate funds based on this remaining balance, ensuring a fair and continuous path to a full 1:1 exit for all participants.
The Revenue Backing: Upstream Sources Only
The strength of the pledge depends on the quality of its backing. To ensure security and verifiability, the pledge is funded exclusively by Upstream Revenue.
Upstream Revenue (Pledge-Backing): This is revenue generated directly from the protocol's core treasury activities before any internal value distribution. It includes yield from assets held in the Holding Contract and fees from primary PSUs like the Arbitrage Engines. This revenue is verifiable, low-risk, and hard-coded to flow through the Settlement Contract first.
Downstream Revenue (Non-Pledge-Backing): This is revenue that results from internal ecosystem distribution, such as ETH that has already been allocated to a POD and is then reinvested. This revenue is excluded from the pledge to prevent circular dependencies and ensure the guarantee is always backed by primary, external value inflows.
This distinction ensures the pledge is always supported by the most robust and transparent revenue streams, maintaining its integrity as an unconditional guarantee.
The Strategic Role in the Monetary Framework
The Pledge is not an end-state; it is the first phase in a deliberate strategy toward full sovereignty.
The Trust Bridge: In the protocol's early "scaffolding" phase, the Pledge provides the essential trust by leveraging the stability of an existing asset (crvUSD).
The Path to Sovereignty: As the protocol's own Protocol-Controlled Reserve grows, the intrinsic value of GUILD will become undeniable. Over time, the guarantee of the Pledge will become secondary to the organic backing of the reserve, marking the transition to a fully self-sovereign currency.
The Settlement Pledge is the engineered solution to the "bootstrapping problem" of a new money. It is the feature that allows users to engage with the system confidently, knowing their capital is protected by a definitive, executable guarantee.
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