Proposal 1 - Enable USP Minting & Redemption, Explain PIKU / sPIKU Governance Flow

Summary:

Launch USP - Yield Optimized Stablecoin by enabling minting and redemption of USP via the Piku Platform. Introduce the PIKU Utility Token, sPIKU staking mechanism, and their roles within the PikuDAO governance. This vote will formalize the operational parameters and get approval for token launches. USP mint and redemption starting date will be decided on another vote.

Background and Definitions USP is a Yield-Optimized Stablecoin backed by diversified strategies— fx arbitrage, carry trades, DeFi yields, and Real World Assets—to protect purchasing power while generating yield.

Minting & Redemption Mechanics: Phase 1 allows USD stablecoins for minting and redemption. Minting is automated and instantaneous on-chain. Redemption incorporates a T0 + queue system. Redemption is instantaneous if there are USD Stables available in the backing of USP. If not USD Stables are redeemed from strategies to complete the redemption process. The redemption process uses a "first-come, first-served" queue system to ensure fairness and all redemption requests are completed T0. Minting USP has a 0% fee. Redeeming USP has a 0.2% fee. The redemption fee is added back to the backing of USP to incentivize long term USP holding.

Governance Tokens & Incentives: PIKU: Utility token of PikuDAO. Total supply 500M tokens. PIKU is powering the decision making for USP and PikuDAO. PIKU is used as reward distribution for holding USP and for being active in PikuDAO. sPIKU: Obtained 1:1 by staking PIKU. Enables governance participation and accrues staking rewards. Unstaking triggers a 30-day cooldown. Governance Process: PikuDAO deploys a Snapshot voting. Every sPIKU = 1 vote; delegation is also supported and rewarded.

Details for PIKU token economics, vesting details and incentive distribution can be found at https://docs.piku.co/piku/pikudao/piku Platform Security: Governance decisions are executed on-chain by the Treasury Multisig Members. The Multisig Members can be changed via PikuDAO voting.

Proposal Details Details of USP Yield Optimized Stablecoin USP is initially fully backed by USD Stables at 1:1 ratio, ensuring a stable launch value of $1.00 USD. PikuDAO then diversifies and enhances this backing with a carefully selected basket of on-chain and off-chain assets that generate yield.

Yield Management The yield generated from the backing assets will be added to the USP backing, increasing the value of USP tokens. The price of USP is pushed on-chain multiple times a day to reflect the value change of the backing.

Minting and Redemption Minting: Piku facilitates a straightforward USP minting process for KYC/KYB-verified users directly through its platform. During launch, USD stables will be used to mint USP. The minting process is designed to be instantaneous and executed on-chain, with the minting fee set at 0%. Redemption: When redeeming USP, the amount of USP requested for redemption will be burned and USD Stable will be returned. The redemption process incorporates a T0 + queue system. Redemption fee will be applied as 0.2%. The redemption fee will be added back to the backing of USP to incentivize long term USP holding. Redemption Queue: The redemption process for USP tokens involves a digital queue that ensures fairness and security, distinct from the instant minting process. Each redemption request is placed in a queue within the smart contract on a "first come, first served" basis. The redemption is processed instantly if there is enough USD Stable at the redemption contract. If the USP redeemed is a larger amount, part of the backing assets will be liquidated to complete the redemption request.

Governance USP backing and Piku Platform parameters are all managed by PikuDAO with sPIKU votes. PikuDAO's mission is to establish a fully decentralized decision-making process, to create an optimal store of value currency. Details: https://docs.piku.co/piku/pikudao/governance

PIKU The tokenomics of the PIKU Utility Token is strategically designed to align with the long-term vision and sustainability of PikuDAO, ensuring a balanced distribution that incentivizes DAO participation and USP holding. Here's an overview of the logic behind the distribution. Total Token Supply: 500,000,000 PIKU Details: https://docs.piku.co/piku/pikudao/piku

sPIKU sPIKU is the staked utility token within the Piku ecosystem, representing voting power in PikuDAO. By staking your PIKU tokens, you get sPIKU, allowing you to participate in the decision-making process that shapes the future of PikuDAO. This model fosters a community-driven governance structure, ensuring the interests of USP and PIKU token holders.

Governance Participation Incentives Details: https://docs.piku.co/piku/pikudao/incentives

Treasury PikuDAO treasury is used to fund ongoing development and maintenance of USP and PIKU. sPIKU holders who participate in governance can propose and vote on how to use the treasury's funds. 10% of all yields generated from USP backing goes to the PikuDAO Treasury. There is no revenue cut by a centralized entity. PikuDAO Treasury accrues value for PIKU holders. PikuDAO aims to become a public good. Details: https://docs.piku.co/piku/pikudao/treasury