Snowcat DAO implements Fractionality code to allow minting when the treasury has lower levels of protocol reserves than would be possible in Wonderland. Wonderland requires the number of tokens in the treasury to equal or exceed the number of native tokens in existence, but it does not account for the values of individual reserve tokens. Snowcat's Fractionality variable allows the treasury to mint with a number of tokens as small as 1% of the number of SCAT tokens in existence.
Allowing the treasury to contain fewer tokens will guarantee that Snowcat can keep minting until the end of the 8-day reward emission period regardless of the interim SCAT token price. At the end of the 8-day reward period, all further SCAT supply expansion becomes impossible, making Fractionality irrelevant afterwards.
Last modified 1yr ago