Mitigating Price Volatility through Controlled Coin Burns
The Stability Fund is designed to support Kaldicoin value by exchanging them for stable crypto assets, such as USDC, during periods of market strength and repurchasing and burning Kaldicoin using these stablecoins during market downturns. This process is governed by a sophisticated set of rules that dictate the timing and quantity of transactions. An initial allocation of 725 million Kaldicoin is available for deployment, if necessary, within the first 36 months following the launch.
To maintain the Stability Fund, 16% of all newly minted Kaldicoin based on coffee sales via KaldiMarket are added with each coin issuance. Leveraging AI-driven trading bots and smart contracts, it aims to reduce market fluctuations and bolster the value of Kaldicoin during weaker market conditions.
The Stability Protocol - Kaldicoin Contraction
The Kaldi Stability Fund is a mechanism designed to ease Kaldicoin price volatility. The fund is designed to buy back Kaldicoin from the market when the price falls below certain thresholds, helping mitigate sudden drops in market price due to external factors. The fund is governed by a set of rules that determine when and how it buys back Kaldicoin, including looking for market equilibrium signals and buying back Kaldi in tranches. By using the Stability Fund to ease price volatility, Kaldi aims to provide greater predictability and confidence for buyers, sellers, and investors.
