Initial Network State
Our initial goal is not to find a fair price for SISHI. This may seem antithetical to our currency aspirations, but we ensure you it is not. Sishi Finance can be tuned to optimize for different things. The main tradeoff is volatility and profitability versus stability and consistency. With volatility and profit comes growth; this is what we want early on.
With tight policy and scale, Sishi Finance should function well as a stable asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, Sishi Finance has the potential to act as a wealth creation machine. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created.
The initial network features a one-way treasury (money goes in, none comes out), the bonding contract (through which supply increases and profits are produced i.e minting), and the staking contract (where profits are distributed).
The following are the initial policy states:
- Bond vesting term - It is set to a fixed number BSC blocks or approximately five days for all Bond Asset types.
- SISHI distribution - Every time someone bonds SISHI, the proceeds will go to the Sishi Treasury. A corresponding amount of SISHI will be minted and distributed to three parties:
- Bonder - The Bonder will receive the quoted amount of SISHI minted linearly over the vesting term.
- DAO - The DAO receives the same amount of SISHI as the bonder. This represents the DAO profit.
- Stakers - After accounting for the SISHI distributed to the bonder and the DAO, the rest will be distributed among all stakers in the protocol.