Once a user holds DA, they have two primary financial options: selling the asset or using it as collateral for a loan.
Sell DA
100% of sold DA is permanently burned. You receive 75% (manual) or 70% (auto) of value in USDT. The remaining 25% (manual) or 30% (auto) stays as backing in the pool — this drives the DA price upward.
Lend DA
Borrow up to 70% LTV in USDT against your DA. Your DA stays in your TokenStack. 30-day loan period with a one-time 5% commission.
When selling DA, there are two distinct scenarios with different conditions:
Manual Sale (user sells independently):
The user receives 75% of the DA value in USDT at the current price.
100% of the sold DA tokens are permanently burned.
The remaining 25% of USDT backing stays in the pool — with fewer tokens and the same liquidity, this 25% directly drives the price growth.
Auto-Sell (triggered after TokenStack period expires):
The user receives 70% of the DA value in USDT at the price on the date of auto-sell.
100% of the auto-sold DA tokens are permanently burned.
The remaining 30% of USDT backing stays in the pool — this 30% is what drives the price upward.
Auto-sell triggers automatically if the user has not sold manually before the period expires.
In both cases, 100% of sold tokens are burned — the 25%/30% represents the USDT backing that stays in the pool. This is the mechanism that drives price growth: fewer tokens + same liquidity = higher price per DA. Auto-sell offers a 5% lower payout, incentivizing users to actively manage their DA positions.
Auto-sell triggers automatically if you don’t sell manually before the TokenStack period expires. It pays 5% less (70% vs 75%), incentivizing active management.
DA is 100% available to the user immediately upon farming — there is no lock-up period. The user can sell manually at any time (receiving 75% in USDT) or take a loan against their DA. If the user does not act, the system triggers automatic forced sales from the remaining balance progressively over 4 periods spanning 12 months total.Example starting with 100 DA:
1
Period 1 — 25% auto-sell after 4 months
If you haven’t sold manually within 4 months, 25% of your current DA balance is auto-sold. 25% of 100 DA = 25 DA auto-sold → You receive 70% of value in USDT at current price → 100% of 25 DA burned → Remaining: 75 DA
2
Period 2 — 40% auto-sell after 3 more months (month 7)
40% of the remaining balance is auto-sold. 40% of 75 DA = 30 DA auto-sold → Remaining: 45 DA
3
Period 3 — 50% auto-sell after 3 more months (month 10)
50% of the remaining balance is auto-sold. 50% of 45 DA = 22.5 DA auto-sold → Remaining: 22.5 DA
4
Period 4 — 100% auto-sell after 2 more months (month 12)
100% of the remaining balance is auto-sold. Position fully closed. 100% of 22.5 DA = 22.5 DA auto-sold → Remaining: 0 DA
Each auto-sell executes at the DA price at that moment, not the original farming price. Since price grows over time, later auto-sells burn tokens at a higher price — strengthening deflation further.
Auto-Sell with Zero Income Limit: If DA auto-sell triggers and the user has zero Income Limit on their NFT (meaning the NFT has not been renewed), 100% of proceeds are directed either to the Liquidity Pool or to DA burn. The exact mechanism is determined by DAO settings. Users should always maintain an active Income Limit to receive their auto-sell payout.
Instead of selling, users can take a loan in USDT against their DA holdings. Users can borrow up to 70% of the current USDT value of their DA collateral (Loan-to-Value). The smart contract enforces a strict 30-day loan cutoff period. If a loan is not managed within the required parameters, the collateralized TokenStack can be liquidated.When taking a loan, the borrower pays a one-time 5% commission that is directed to the DA Liquidity Pool. The borrower receives 95% of the loan value. Example: for a 1,000loan,theborrowerreceives950 and $50 goes to the Liquidity Pool. This commission is collected with every new loan — users can take new loans after receiving new DA batches, meaning the commission flows into the Pool repeatedly.
Each DA batch from a mining cycle serves as independent collateral. Users can take a separate 70% LTV loan against each batch individually:
1
Mine Batch 1
Complete a mining cycle and receive DA batch 1.
2
Borrow against Batch 1
Take a 70% LTV loan against batch 1 (5% commission to the Liquidity Pool).
3
Mine Batch 2
Start a new mining cycle and receive DA batch 2.
4
Borrow against Batch 2
Take another 70% LTV loan against batch 2 (separate 5% commission).
Multiple simultaneous active loans are possible — one per DA batch. Each loan has its own 30-day cutoff and 5% commission. Smaller NFTs produce smaller loans, larger NFTs produce larger loans. If any individual loan defaults, only that batch’s collateral enters the auto-sell cycle — not all DA holdings.
Lending Default — Progressive Burn: If a loan is not repaid, the collateralized DA enters the auto-sell cycle. Tokens are progressively burned through the same 4-period schedule (25% → 40% → 50% → 100% of remaining). The user does not receive USDT from these auto-sells — proceeds are directed to the Liquidity Pool. This mechanism protects system liquidity, reduces risk, and enforces financial discipline across the ecosystem.
