No. Nirvana is a fully decentralized protocol with no team or insider
allocations. Every ANA & NIRV token in existence was created through the
protocol. If the there were insider distributions of tokens, it would break the
floor price guarantees of the protocol.
The floor price is guaranteed by the
protocol-owned liquidity & market price function.
The price function sets a minimum price that can be guaranteed for 100% of ANA
tokens sold back to the market for the liquidity held in reserve.
No. Once the floor reaches a new height, it never recedes. It will either stay
the same or rise. Whenever the floor ratchets upwards, this locks in gains in
perpetuity for ANA.
No. The first ANA token minted will be the cheapest it will
ever be. The first ANA token is purchased from the market at the floor price,
and from that moment forward the price can only appreciate.
Why would voters decide to keep the floor constant, rather than allow it to rise?
The floor will not rise unless there is a majority vote to allow it to rise. The
reason voters may decide to keep the floor constant is that this could increase
the returns for their prANA. Since prANA can be executed as a
call option for ANA with the strike price equal to the current floor price, the
monetary value of prANA is the difference between the current market price of
ANA and its floor price. As the market price of ANA extends beyond the floor
price, the value of prANA increases, raising the APY for staked ANA.
What happens if ANA is sold back to the floor price?
If ANA is sold back such that its price reaches the floor price, the protocol’s
native market will continue to honor sales of ANA at the floor price for all ANA
tokens in circulation. But the next ANA token purchased will incur positive
price impact, raising the price of ANA.Thus, if ANA is at the floor price, the risk and reward for purchasing ANA is
absolutely asymmetric. ANA is at the lowest price it can possibly be at, and so
it can only appreciate from there. This asymmetry discourages panic selling,
since once ANA is at the floor, it is not rational to continue selling it back.
Why is there a cooldown period for the floor rise?
The floor can only rise once every 2 hours. This throttle prevents the floor
from rising too quickly. If governance votes have kept the floor constant for
some time, and then the votes switch the majority to be in favor of allowing the
floor to rise, without a cooldown period the floor would rise to its maximum
value immediately.
