2.2 Temple AMM & Tokenomics Update (1/2)

Refresher on Temple Economics

  1. Stablecoins depreciating at 5–25% pa depending on how you measure inflation / money supply growth — which you try to counter with safe yield
  2. Naked tokens in defi, which vary from “crazy volatile” to “holy fk volatile” and mostly correlate and crash together in downturns

Principle #1: Ecosystem growth benefits all TEMPLE holders.

  • Our rituals drive a self-selection process, creating a strong basis of committed members, which aligns our community = team = investors = users
  • Our mechanics limit price growth, so entry to the Temple remains attractive for everyone (very first TEMPLE price to last Opening Ceremony price is less than 4x)
  • Our design channels excess demand into treasury growth, funding yield, protocol health, and a range of economic & organisational advantages (see next articles)

Principle #2: Design for the highest return possible with maximum price stability and treasury growth.

  1. Temple Growth prevents price moon and dump by slowing price growth and capturing excess demand into treasury growth (previously ‘Safe Premium’).
  2. Temple Devotion, aka Buy The Dip Game, provides the most efficient downside price support possible utilising Faith and Bonus APY rewards (concept previously leaked under the name ‘Temple Offence’).
  3. Temple Defend guarantees this Intrinsic Value by preventing price falling below it.
  4. Exit Queue ensures a fair yet orderly exit from the Temple, where ordering is preserved (first in first out) but the volume of Temple unstaked is limited per day (policy setting, currently ~1.5% of all staked TEMPLE).

Principle #3: Allow Intrinsic Value to grow and never be diluted.

  • Each TEMPLE token is backed by Intrinsic Value.
  • Intrinsic Value is ‘Safe Treasury Value’ / ‘Fully Diluted Supply’, and represents the absolute minimum amount of value attributable to each token. By the end of the Opening Ceremony, each TEMPLE was backed by 0.65 FRAX and growing.
  • As Treasury Grows, Safe Harvest is run and calculates exactly how many TEMPLE tokens can be minted to allow Intrinsic Value to steadily grow. For details, see a working example in this article under “Let’s Run An Example”.

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TempleDAO

TempleDAO

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In a world of volatility, the Temple of long term wealth creation is where disciples come to stake, sleep easy, and chill. Join Discord: discord.gg/frCbCrGv2U