Determination of the seigniorage rate depending on the growth of the CENTUS market cap
Dear CENTUS Holders,
As you know, the number of CENTUS Stable Cent tokens in circulation increases or decreases according to a given algorithm depending on market demand, in other words, depending on the purchases and sales of the token by holders.
Seigniorage is distributed twice a week — on Tuesdays and Fridays.
For a long time, since October 2019, the interest rate was determined by voting among the participants — the owners of DBC and CENTUS tokens.
Currently, the process of introducing a new algorithm for determining the rate and distribution of seigniorage is underway, This algoritm calculates a seigniorage rate depending on the growth of the CENTUS market cap (from purchases of the token by new buyers) and is completely based on market mechanisms.
In this regard, from the date of announcing of the news and until the launch of the new algorithm seigniorage will be paid at a fixed rate, namely, at a rate determined by the last vote — 0.52%.
Accordingly, there will be no rate voting during this period either.
Further, the seigniorage rate will depend on the volume of CENTUS purchases, that is, on the dynamics of capitalization. In other words, the seignorage rate may vary in more wide range: if participants buy more, the rate is lower, if they buy less, the rate is higher.
In moments of significant fluctuations of the seigniorage rate, votes will be held in the usual format among the owners of DBC and CENTUS tokens.
Good luck everyone!👍
