BEVY Token

BEVY is the non-stable, governance token that accrues fees, seigniorage revenue and excess collateral value. All BEVY are obtained as a reward of the liquidity program. BEVY can also be minted by adding certain amount of DAI to collateral pool. BEVY is meant to be volatile and hold rights to governance and all utility of the system. It is important to note that we take a highly governance-minimized approach to designing trustless money.

Parameters that are up for governance through BEVY include adding/adjusting collateral pools, adjusting various fees (like minting or redeeming), and refreshing the rate of the collateral ratio. No other actions such as active management of collateral or addition of human-modifiable parameters are possible other than a hard fork that would require voluntarily moving to a new implementation entirely.

• BEVY is required to mint BUCK

• BEVY is a governance token which can have voting power on BUCK ecosystem

The BEVY token has the potential of upside utility and downside utility of the system, where the delta changes in value are always stabilized away from the BUCK token itself. BEVY supply is initially set to 100 million tokens at genesis, but the amount in circulation will likely be deflationary as BUCK is minted at higher algorithmic ratios. The design of the protocol is such that BEVY would be largely deflationary in supply as long as BUCK demand grows.

The BEVY token’s market capitalization should be calculated as the future expected net value creation from seigniorage of BUCK tokens in perpetuity, the cash flow from minting and redemption fees, and utilization of unused collateral. Additionally, as the market cap of BEVY increases, so does the system’s ability to keep BUCK stable. Thus, the priority in the design is to accrue maximal value to the BEVY token while maintaining BUCK as a stable currency.