Floor Price Protection

The Core Promise

Every mincast raises the floor. The floor never falls.

This is the fundamental guarantee of Origin Mincast. No matter what happens in the market, your tokens have a mathematically guaranteed minimum value backed by real reserves.

Understanding the Two Prices

Origin Mincast has two key prices that work together:

Key insight: Current price can go up or down, but it can never fall below the floor.

How the Reserve Pool Works

Think of Origin Mincast as having a reserve pool that’s divided into two parts:

1. Floor Support Fund (FSF)

• The portion of reserves that backs the floor price
• Guarantees every token can be redeemed at floor value
• This fund grows with every mincast and fee

2. Price Support Fund (PSF)

• The portion that supports price above floor
• Creates the “premium” above floor price
• Fluctuates with market activity

The floor price = FSF ÷ Total Supply

The Raise Mechanism

This is the magic that makes floor prices only go up.

What Triggers a Raise?

When enough buying activity occurs, the protocol automatically:

1. Detects threshold — Monitors the ratio between PSF and FSF
2. Triggers Raise — Redistributes funds from PSF to FSF
3. Locks in gains — Floor price increases permanently

Why Does This Work?

Key Properties

What Happens When You Mincast?

When you mincast (buy) tokens:

1. Your WEUSD enters the reserve pool
2. New tokens are minted for you
3. If threshold reached → Raise triggers
4. Floor price increases for everyone

This creates a positive feedback loop:

• More mincasting → More reserves → Higher floor
• Higher floor → More confidence → More mincasting

What Happens When You Melt?

When you melt (sell) tokens:

1. You receive at least floor price in WEUSD
2. Your tokens are burned
3. Reserve decreases proportionally
4. Floor price stays the same or higher

Important: Melting never lowers the floor because tokens and reserves decrease proportionally.

Comparison: With vs Without Floor

Traditional Token

• Price can drop to zero
• No guaranteed floor
• Total loss possible

Origin Mincast Token

• Price cannot fall below floor
• Always redeemable at floor
• Downside protected

Practical Example

Scenario: A project launches with:

• Initial reserve: $100,000
• Initial supply: 100,000 tokens
• Initial floor: $0.70 per token

After active trading:

• Reserve grows to: $500,000
• Supply grows to: 400,000 tokens
• Multiple Raises triggered
• New floor: $1.05 per token (+50%!)

Your protection:

• Bought at $1.20
• Market crashes
• Can always melt at $1.05 (floor)
• Maximum loss: 12.5%, not 100%

What Floor Price Means for You

As a Holder

• Guaranteed Exit — Always melt at floor price
• Limited Downside — Max loss = current price - floor
• Unlimited Upside — Price can rise without limit

As a Mincaster

• Protected Investment — Your purchase has a floor
• Value Accrual — Your activity raises the floor
• Aligned Incentives — Everyone benefits from activity

As an Issuer

• Investor Confidence — Floor provides security
• Sustainable Model — Value locked permanently
• Anti-Rug — Cannot dump below floor

Security Guarantees

What Can’t Happen

❌ Floor cannot be lowered by anyone
❌ Reserve cannot be drained below floor backing
❌ Admin cannot change floor parameters
❌ Token price cannot go below floor

What Can Happen

✅ Floor rises with activity
✅ Current price fluctuates above floor
✅ Users melt at or above floor
✅ Value accumulates over time

Summary

The floor price mechanism transforms RWA tokens from speculative assets into value-protected instruments, providing security that traditional markets cannot offer.