Tokenomics

Our tokenomics have been adapted from Temple Dao's presale tokenomics for the ones aware of the project. To understand $Earth's tokenomics it is imperative to get a clear understanding of the following 3 concepts -

1. Intrinsic Value (IV)

   Every $Earth token is supported by a diverse combination of climate assets from clean energy, regen agri, conservation, clean transport etc . The $ value of these climate assets lends itself to provide the Intrinsic Value of $Earth. This value will serve as a reference point only and will not be defended until the point the DAO is able to partly liquidate its assets on chain to ensure the necessary liquidity to defend the value.

INTRINSIC VALUE = $ Treasury Value / Total $Earth supply

It is important to note that unless anything catastrophic happens to the real world climate projects, IV for $Earth will never go down. This means you can be assured irrespective of crypto/climate sentiments your $Earth will always have the IV notionally assured. Also important to note which will be made clear later is that $Earth tokenomics are coded such that we can never mint $Earth which dilutes IV.

2. Mint Multiple -

This decides the price at which $Earth is minted at the protocol level and at what premium to IV

Intrinsic Value (IV) x Mint Multiple = Mint Price

For ex if IV of $Earth is $5 then Mint Price -

At Mint Multiple of 2 - $5 x 2 = $10

At Mint Multiple of 3 - $5 x 3 = $15

This means that you will always be able to mint from the protocol at this price irrespective of the price of $Earth on its LP.

Mint multiple starts at 2 and can be adjusted according to the desired monetary policy outcomes.

3. Safe Harvest

This ensures that IV of $Earth can never fall tokenomically. Every time anyone mints $Earth directly from the protocol at a specific mint multiple to IV, the protocol gets to harvest the remainder such that IV doesnt get diluted.

For ex

IV - $5

Mint multiple - 2

$Earth at protocol sold at $10

Minter pays 1000 $Dai for 100 $Earth, while IV of 1 $Earth is 5 $DAI.

This lets protocol harvest 100 $Earth without diluting IV.

Heres the tentative split of how the harvested $Earth is then distributed

1. APY to stakers - 30%

2. Partnerships/ Burn to increase IV - 30%

3. Liquidity Pool - 20%

4. DAO - 10%

5. Community Bonus - 10%

$Earth's market behaviour is going to be an interplay between these characterstics.