Worked Examples
Concrete numbers for the two moves everyone makes. Assumptions: a vault with totalSupply unchanged except by you, so share price stays flat within the example; real arithmetic depends on live state.
Example 1 — Deposit 100 tokens
Entry tax: 5% = 5.00 tokens.
| Sink | Share | Tokens |
|---|---|---|
| Dividend pool | 80% | 4.00 |
| Burn (locked out of backing) | 10% | 0.50 |
| DAO | 4% | 0.20 |
| Vault creator | 2% | 0.10 |
| Creation platform | 2% | 0.10 |
| Usage platform | 2% | 0.10 |
| Net to depositor | — | 95.00 → minted as shares |
Example 2 — Redeem shares worth 100 tokens
Exit tax: 10% = 10.00 tokens of value.
| Sink | Share | Tokens |
|---|---|---|
| Dividend pool | 80% | 8.00 |
| Burn | 10% | 1.00 |
| DAO | 4% | 0.40 |
| Vault creator | 2% | 0.20 |
| Creation platform | 2% | 0.20 |
| Usage platform | 2% | 0.20 |
| Net to exiter | — | 90.00 |
Example 3 — The round trip
Deposit 100 today, redeem tomorrow:
- In: 95.00 of shares
- Out: 90% of 95.00 = 85.50 of tokens
- Cost: 14.50 tokens (14.5%) — split across the six sinks above
This is the protocol working exactly as designed: churn is taxed, holding is subsidised by churn.
Example 4 — One month of holding with churn
100 tokens deposited → 95 in shares. Over the month, 10,000 tokens of churn flows through the vault (entry + exit taxes):
- Total tax collected: ~1,400 tokens of value across events
- → 80% (1,120) accrues pro-rata via the dividend index
- Your pro-rata slice depends on your share of
totalSupply— claimable any time in tokens - → 10% (140) is locked out of backing: every remaining share is worth more
- Exit after the month (not during): 90% of position value, plus any claimed dividends already in your wallet
The spread between "exit tomorrow" and "hold through churn" is roughly 24.5 points of position value in the whitepaper's scenario — the entire thesis in two behaviours.
Floor-division dust from each split lands on the burn portion — nothing is lost, and totalAssets() reverts loudly if backing ever contradicts its liabilities.