IYou already know this system
You pay twenty cents more than the price on the bottle. You bring the bottle back, you get your twenty cents. You throw it away, the shop keeps them. Nobody has ever needed that explained.
That is the whole protocol. Buying sets two percent of your ETH aside, in your name, with a date on it. Hold to the date and you take it back. Leave before, and it goes to the people who stayed.
The sentence to remember: the impatient pay the patient.
IIWhat the contract does when you buy
It takes two percent of the ETH and puts it in a vault, under your name, with a date. That ETH is not spent. It is not burned, not sent to a team, not turned into tokens, not placed as liquidity. It sits there and it is still yours, and anyone can read that it is.
The balance is always at least the live deposits. Without exception, never.
IIIThirty days, and no lock
Thirty days, written into the contract, not changeable by anyone, ever, including us and including a vote.
It is not a lock-up. You can sell on day one, day twelve, day twenty-nine. Nobody stops you and nothing in the code can. It is only the date from which your deposit becomes collectable.
IVWhat you get back
Two things, in one click, in ETH. Your deposit, to the unit. That is not a return, it is a repayment: the contract owed you that money and it hands it over. And your share of what other people left behind while your deposit was in play.
If nobody leaves early, you get your deposit back and nothing more. That is the bottom of the mechanism and it is structural: you cannot get back less than you put in.
There is an irony worth saying out loud on day one. The mechanism pays less the better the project does. A token where everybody stays is a token with no breakage at all.
VWhere an abandoned deposit goes
It is cut in three, immediately, in the transaction that abandons it.
In retail accounting this money has a name: breakage. The deposits, gift cards and credits nobody ever comes back for. In a shop it goes to the shop. Here it goes to the customers who brought the bottle back.
The holders' share is spread in proportion to live deposits and to the time they have been in play, continuously, by an accumulator. The treasury tenth pays for audits, security and operations, from a public address with readable movements.
VIThe base only goes up
A fifth of every abandoned deposit becomes ETH placed under the market, where it sits as a standing buyer. It is never returned to anyone. No path in the code can withdraw it.
This is the reversal. Usually somebody selling weakens the people who stay. Here every hurried exit raises the ground under them.
VIIWhy this is not an exit tax
It is the first objection anyone makes, it is fair, and the answer has to be checkable. There is no sell tax here. Zero. When you sell, the contract takes nothing at all, and your swap is an ordinary swap. You simply lose a deposit you had advanced and chose not to collect.
- 01An exit tax is taken when you sell. A deposit is set aside when you buy.
- 02An exit tax is never coming back. A deposit comes back in full after thirty days.
- 03With an exit tax, selling costs you whatever the rate is. Here, a holder who stayed pays nothing at all.
- 04An exit tax contract can usually block you. There is no function here that can.
- 05An exit tax rate can usually be changed by the team. There is no function here that can.
VIIIWhat the contract cannot do
- 01Stop a transfer or a sale. No function exists.
- 02Hold back a deposit that is due. There is no condition other than the date.
- 03Create tokens. There is no mint.
- 04Change the deposit rate, the term, or the split. All three are constants.
- 05Withdraw the base. There is no path in the code.
- 06Touch the deposited ETH. The pockets are kept strictly apart.
- 07Pause anything, upgrade anything, or rescue anything. There is no pause, no proxy, no emergency function.
The last line matters more than the others. An emergency function is indistinguishable, from the outside, from a back door. There is none. The price of that is real and has to be said: if a bug locks funds, nobody will be able to get them out, including us.
IXThe flaw
Anyone can deploy a second pool on the same token with no hook attached, and the token cannot stop them, because a token that can block a transfer is a trap. Volume that routes around the canonical pool opens no deposit at all, and that is the one real leak in the design.
The answer is not to close it, it is to publish it. The share of volume going through the canonical pool is printed in the app and updated like any other figure. A project that publishes that number every week cannot be accused of hiding it, and it is the best defence available on the point where this will be attacked.
Two more things said plainly. This is not a yield product: there is no outside revenue, and what a holder collects can be zero. And it is not protection against the price going down, because the deposit is in ETH and protected, while the position is not.