SkyUSD additional issuance and profit sharing

Logic for issuing additional SkyUSD

If the TWAP (Time-Weighted Average Price) of SkyUSD exceeds $1.10, a new SkyUSD will be minted according to the following table.

SkyUSD TWAP	Mint amount	Example
SkyUSD <= $1.10	No mint	1 SkyUSD is not minted when SkyUSD's TWAP is $1.09
SkyUSD > $1.10	Varies between 3% and 0.5% (see table below)	When SkyUSD TWAP is $1.12 and SkyUSD has 3 million outstanding, 3%, or 90,000 SkyUSD, will be minted

The number of mints will gradually decrease as the total number of mints issued increases.

The TWAP refers to the Oracle.

Epoch time

The TWAP is determined once every 24 hours to determine if the TWAP exceeds $1.10. This time unit is called Epoch.

1 Epoch = 24 hours

Distribution

The Sky Hedge Fund will sell additional SkyUSD issued to the market on a dollar cost averaging basis. The marginal gain from the sale will be distributed in proportion to each user's SkyUSD lock volume.

Amount received from sale - (Redemption reserve per SkyUSD x number of additional issues) = Total distribution

Example: Additional issue 900,000 SkyUSD sold at an average of $1.15 1,035,000 - (1 x 900,000) = $135,000 total dividend

If 20,000,000 SkyUSD locked 20,000,000 / $135,000 = $0.00675 dividend per lock

If a user locks 10,000 SkyUSD at a cost of $10,000 10,000 × $0.00675 = $67.5 dividend per Epoch (*) This number is a rough estimate since not all SkyUSD are sold within one Epoch.

Treasury（20％）

As a treasury, 20% of the additional SkyUSD issuance will be held by Sky hedge funds.