DUCAT

The machine, running. Policy, bonds, backing and the ratchet, epoch by epoch.

Epoch

0

day 0

Market

$1.3500

Trading at 1.02x backing. A premium is an offer, not a peg violation.

Backing

$1.3289

Realisable treasury per ducat, after haircuts. 1.06x the reference.

Reference

$1.2500

The floor policy aims from. No path down.

Governor band

Aggressive expansion

Surplus 1.063. Cushion retained rather than spent. Expansion closed.

Market Backing Reference Supply
log scale

Market conditions

Bond appetite60%
Equity market drift, per epoch+0.3%
Pool volatilitymedium

Policy state

Surplus, backing over reference1.063
Bond capacity this epoch0 ducat
Permitted expansion0 ducat
Warchest, ducat held against itself0 ducat
Redemption price$1.2375
Liquid reserve, share of treasury74.1%

Ratchet, next step to $1.3125

Trailing backing required$1.5750
Worst backing in window$1.3289
Epochs until eligible0

Supply and burns, cumulative

Ducat outstanding19,000,000
Minted through bonds0
Minted through expansion0
Burned, warchest0
Burned, pass proceeds0
Burned, arbitrage capture0
Redeemed and retired0
Aggregate burn0

Treasury, marked down before it counts

AssetTierValueHaircutRealisable
USDG1$20.00m2.0%$19.60m
AAPL2$3.00m15.0%$2.55m
NVDA2$2.00m20.0%$1.60m
TSLA2$1.00m25.0%$750k
WETH2$1.00m25.0%$750k
All positions$27.00m6.5%$25.25m

Ownership layer

Passes outstanding1,000
Founder · Charter · Member25 · 175 · 800
Total issuance weight1,575
Expansion to passes, cumulative0 ducat
Per founder pass, cumulative0 ducat

Invariants

Backing above the 1.02 bond floorholds
Expansion spends surplus only to 1.05holds
Cushion retained above the 1.20 targetholds
Weekly expansion inside the 0.5% capholds
Liquid reserve at or above 35%holds
Reference has never stepped downholds
Backing read independently of marketholds

Epoch ledger

0 entries

Illustrative model of the mechanics described in the Ducat white paper: three prices, seven governor bands, bond floor at 1.02 backing, expansion capped at 0.5 percent a week and only into surplus above 1.05, the 30 and 90 day ratchet tests, warchest accumulation and burn, recovery entered on backing rather than price, redemption at the lower of reference or backing less one percent, and arbitrage capture gated at one percent. Parameters follow the published set. Price paths, asset moves and demand are simulated, and no figure here is read from a live protocol.