DNOTE token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain DNOTE's peg to 1 Fantom (FTM) token in the long run.
Note that DNOTE actively pegs via the algorithm, it does not mean it will be valued at 1 FTM all times as it is not collaterized. DNOTE is not to be confused for a crypto or fiat-backed stablecoin.
DNOTE Shares ($SNOTE) are one of the ways to measure the value of the DNOTE Protocol and shareholder trust in its ability to maintain DNOTE close to peg. During epoch expansions the protocol mints DNOTE and distributes it proportionally to all PSHARE holders who have staked their tokens in the Boardroom.
SNOTE has a maximum total supply of 55000 tokens distributed as follows:
- 1.DAO Allocation: 4975 SNOTE vested linearly 120 days
- 2.Team Allocation: 4975 SNOTE vested linearly 120 dáy
- 3.Remaining 45000 SNOTE are allocated for incentivizing Liquidity Providers in SNOTE rewar d pools for 12 months
- 4.50 SNOTE be minted for initial liquidity
DNOTE Bonds (BNOTE) main job is to help incentivize changes in DNOTE supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of DNOTE falls below 1 FTM, BNOTEs are issued and can be bought with DNOTE at the current price. Exchanging DNOTE for BNOTE burns DNOTE tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 FTM. These BNOTE can be redeemed for DNOTE when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for DNOTE when it is above peg, helping to push it back toward 1 FTM.
Contrary to early algorithmic protocols, BNOTE do not have expiration dates.
All holders are able to redeem their BNOTE for DNOTE tokens as long as the Treasury has a positive DNOTE balance, which typically happens when the protocol is in epoch expansion periods.