Bonding Treasury
Last updated
Last updated
As a DAO should be entirely decentralized, its fundraising should follow suit. To maintain full decentralization, Reform opted for a Bonding Treasury as a fundraising method. This treasury was filled with 390 million $RFRM on TGE, equivalent to 39% of the total supply, which is locked and available for swapping against $ETH, $USDC, or $USDT at any time. The Bonding Treasury will be refilled with buybacks from revenue generated.
What is a Bonding Treasury?
A Bonding Treasury enables decentralized fundraising and generates liquidity for Reform. Participants can acquire discounted $RFRM tokens by swapping against the Bonding Treasury and locking them in the Staking Contract for a predetermined period. This allows investors of all sizes to participate and maintain control over their tokens.
Why a Bonding Treasury?
The community has endorsed the Bonding Treasury for its multifaceted benefits, including generating liquidity, offering discounted $RFRM tokens to long-term supporters, and addressing market-wide liquidity and infrastructure issues. Gathered liquidity is allocated for purchasing tokens/coins and executing Market Making strategies that generate rebates. The rebates are then channelled to various treasuries and utilized for Reform token buybacks, creating a self-sustaining ecosystem that benefits all DAO participants.
How does Bonding work?
Swapping $USDC, $USDT, or $ETH for $RFRM through the Bonding Contract is simple and accessible. Bonds can be purchased at a discount, with the discount rate depending on the selected locking period. From the revenue earned from the rebates, the DAO uses 65% for unpredictable $RFRM buybacks, which will be transferred back to the Bonding Treasury to gather more liquidity.
Locking periods of the bonding?
The locking periods and discounts are the following:
1-year locking period in the staking contract - 5% discount on the market price
2-year locking period in the staking contract - 10% discount on the market price
3-year locking period in the staking contract - 17.5% discount on the market price
4-year locking period in the staking contract - 27.5% discount on the market price
5-year locking period in the staking contract - 40% discount on the market price
Step-per-step guide
Step 1 - Select bond payment ($USDC, $USDT, and $ETH).
Step 2 - Select the number of tokens for the purchase.
Step 3 - Select your lock period; this can not be changed afterward.
Step 4 - Accept the automatically generated quote.
Step 5 - Accept the smart contract transaction in your wallet.
Step 6 - The tokens will be automatically locked in the staking contract.
Step 7 - You will receive $eRFRM for voting purposes and to unlock the tokens after your locking period.
