⛲Reserve Replenishment

Reserve Replenishment Strategy - Sustaining Equilibrium and Treasury Strength in the Modus Ecosystem

Ensuring Sustainability and Market Harmony

Whilst the rewards made on projects will be directly paid to stakers via PRTs at maturity, development listing fees of up to 5% will go to the Modus Reserve in the form of $USDC.

The first use of these funds is the replenishment of $MODUS tokens in the Treasury to cover the swaps made from PTs and PRTs to $MODUS tokens before maturity; notably, the exponential rewards will mean that early swaps are disincentivised and therefore replenishment requirements will stay low.

$USDC from the Modus Treasury will be sent to an address that programmatically buys $MODUS tokens over an extended period of time from the market to average out the price; consequently, not only spreading Modus Treasury risk from price fluctuations but also not inadvertently affecting market prices through large buy orders.