> For the complete documentation index, see [llms.txt](https://wei-yu-tseng.gitbook.io/blablablock/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wei-yu-tseng.gitbook.io/blablablock/english/how-blablablock-works/pegged-token-price.md).

# Pegged Token Price

If there is any diverge from the anchoring, the BlablaBlock team will maintain the anchoring by taking the following actions:

1. **If the $BLA price is lower than the value in the DAO treasury**, the BlablaBlock team will purchase $BLA on a DEX (causing the $BLA price to rise), burn these $BLA in the smart contract, and withdraw an equivalent amount of stablecoins from the treasury (causing a decrease in TVL and unchanged value in the treasury).
2. **If the $BLA price is higher than the value in the DAO treasury**, the BlablaBlock team will deposit stablecoins into the treasury, issue an equivalent amount of $BLA (causing an increase in TVL and unchanged value in the treasury), and sell these $BLA tokens on a DEX (causing the $BLA price to decrease).

For example, the market demand for $BLA is high, with a price (P) greater than the DAO treasury value (V), so we will make a market to peg P and V…

Assuming that:

1. P = $20
2. V = $10
3. BlablaBlock uses $100 stablecoins for market making.

Therefore, the BlablaBlock team will:

1. Deposit $100 stablecoins into the treasury.
2. Mint 10 $BLA tokens in the smart contract (worth V \* 10 = $100, equivalent to the value of the stablecoins deposited).
3. Sell these $BLA tokens on the DEX.

Steps 1 and 2 will increase the DAO treasury’s TVL and maintain the value of V, while step 3 will cause P to decrease and converge with V. If P and V are still not pegged after this, these three steps will be repeated again.


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