Pegged Token Price

The reason for anchoring is to directly reward DAO members (with an increase in $BLA price) when the validated managers in the DAO treasury make profits. We believe this will stabilize the development

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.