The cCBD token is designed to be used as a medium of exchange. The stability mechanism built into the protocol decisively expands and contracts the supply of cCBD, keeping cCBD pegs at $ 20 (1g CBD price).
The cCBD strain underscores the value of the cCBD protocol and relies on its systematic ability to keep cCBD on the pegs. During epoch expansion (when the time-weighted average price of TWAP-cCBD exceeds the 1g CBD pegged price), the protocol mint cCBD and distribute it proportionally to all sCBD holders who bet tokens on the conference room.
In addition, sCBD is used to achieve fully decentralized on-chain governance. In this case, sCBD holders have voting rights and can make suggestions to improve the protocol.
sCBD has a total supply of up to 50,000 tokens. 7,500 sCBD will be allocated to the team(3240) and DAO (3,750 ) and will be vested linearly over 12 months. The remaining 42,500s sCBD will be allocated to incentivize liquidity providers in the three equity pools.
CBD Bonds (bCBD) help encourage changes in cCBD supply during both expansion and contraction periods of the epoch. For starters, the exchange rate between cCBD and bCBD is 1: 1, but the ratio between bCBD and cCBD depends on the mechanism described here. If the cCBD TWAP falls below the 1g CBD price,$20, the bCBD will be issued and can be purchased with the cCBD at the prevailing price. By doing so, the cCBD will be out of the circular supply.
Unlike the early algorithm Seigniorage stablecoin protocol, bCBD has no expiration date. All owners can redeem bCBD for cCBD tokens. This usually happens when the protocol is an epoch extension.