Utility

DUCAT will be the governance token of the Ducat Protocol.

DUCAT's value derives from 3 sources.

  • All profits of the stablecoin protocol in excess of a governance-agreed auctionReserveTarget, a pool of BTC which the Protocol will use to buy back unsterilisedDebt (redeem circulating UNIT) at a slight BTC premium to 1 UNIT : 1 USD, will accrue to DUCAT tokenholders.

    • N.B. Since all UNIT in circulation will already be collateralised via individual Vaults, the working-capital requirement of the reserveTarget is expected to be quite low.

  • A pro-rata share in the Reserve. If the Reserve is ever reduced or discontinued, all DUCAT holders will receive a pro-rata distribution from the Reserve.

  • Governance rights over the Reserve, the Treasury, and the risk parameters of all Vault Types (initially we will only have 1 Vault Type, the UNIT/BTC Vault).

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