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FLOOR is an ERC20 token backed by ETH and ETH-denominated NFT assets (eg. NFTX vault positions). The value of FLOOR is determined by a combination of assets owned by the treasury, with a minimum protocol-guaranteed value of 0.001Ξ, and a speculative premium on the continued growth of FLOOR.
New FLOOR is minted when
- 1.FLOOR is greater than backing, which results in a "rebase" of new tokens following the current APY inflation, distributed every 8 hours to staked FLOOR
- 2.Eligible assets are “bonded” to the FloorDAO treasury, which sells new tokens to the bonder at a discount
If FLOOR is ever below the treasury asset backing value, then a theoretical arbitrage exists where FloorDAO can dissolve and distribute assets that are worth more than the market value of FLOOR.