Treasury

Strategic Bitcoin Reserve: The MicroStrategy Standard

Inspired by MicroStrategy’s treasury strategy, NFsTay allocates between 10% to 20% of the capital raised to a Bitcoin reserve. This adds an additional layer of value and long-term growth potential for investors.

Treasury Use Cases

1. Bitcoin Upside Exposure

NFsTay’s Bitcoin reserve provides partners with indirect exposure to Bitcoin’s price appreciation. This ensures that, in addition to the stability of real estate, partners benefit from potential long-term gains from the hardest digital asset on the planet.

2. Token Buyback and Burn

The treasury operates with 90% of its holdings in Bitcoin (BTC) and 10% in NFsTay’s native STAY tokens. When Bitcoin appreciates in value, the treasury rebalances by selling some BTC and buying STAY to maintain the predetermined ratio. This process is executed by a smart contract, ensuring transparency and fairness.

If STAY increases in value and exceeds 10% of the treasury’s portfolio, the smart contract will not sell STAY to rebalance—only BTC has a ceiling of 90%. This mechanism ensures the integrity of STAY’s value while leveraging Bitcoin’s growth potential.

The team reserves the right to adjust the BTC/STAY ratio as market conditions evolve, always aiming to optimize returns for partners.

3. Liquidity Provision for Exits

The treasury acts as a contingency liquidity provision mechanism for partners who wish to exit their investment but cannot find sufficient demand in the secondary marketplace. While the secondary market is expected to be active and robust, the Bitcoin reserve ensures that partners can exit with ease, providing confidence and stability to investors.

4. Cash Facilitation for New Deals

The Treasury can enable cash-based deal acquisition, helping us secure better terms and boosting partner returns. Once new deals fund, the capital returns to the Treasury. Alternatively, BTC can be used as collateral to secure financing, preserving BTC exposure while enabling deal flow.

5. Strategic Market Opportunities

The treasury can also be utilized for opportunistic investments that align with NFsTay’s mission. For example, acquiring distressed properties or participating in blockchain-related innovations that complement the platform’s vision. This ensures that the treasury remains a dynamic asset, capable of adapting to emerging opportunities.

6. Enhancement of Protocol

Beyond financial operations, the treasury is allocated to enhance the NFsTay protocol, encompassing various aspects such as research & development, marketing initiatives, and strategic collaborations.

  • Research & Development: Efforts are focused on refining existing protocols, exploring new technologies, and innovating solutions to enhance user experience and platform functionality.

  • Marketing Strategies: Initiatives aim to expand NFsTay's reach, attract new users, and increase overall awareness of the platform.

  • Strategic Collaborations: Partnerships with industry stakeholders foster ecosystem growth, drive adoption, and unlock new opportunities for NFsTay and its community.

Treasury Rules & Conditions

  1. Controlled Management Treasury capital is owned and managed by the NFsTay team—not by partners—intended to reinforce ecosystem stability and growth.

  2. Liquidity Constraints 10–20% of capital is allocated to the Treasury. While it supports exits, it cannot guarantee immediate liquidity for all partners simultaneously.

  3. Fixed Asset Allocation The ratio remains 90% BTC / 10% $STAY, rebalanced by smart contract. The team may adjust allocations based on market conditions, always prioritizing partner returns.

  4. Smart Aggregation of Rebalances Automated smart contract ensures transparent rebalancing once BTC exceeds 90% of the Treasury.

  5. Operational Flexibility The NFsTay team has discretion over when to trade Treasury assets, aiming to maximize value for partners.

  6. Risk Disclosure The Treasury supports growth and liquidity but doesn’t eliminate investment risk. Partners should consider this as part of overall portfolio decision-making.

  7. Market Volatility Rebalancing actions and investments are subject to market conditions. The team operates prudently but cannot guarantee price performance.

  8. On-Chain Transparency All Treasury operations—including trades, rebalancing, and spending—are immutably recorded on-chain for validation by partners.

  9. Mission-Aligned Investments Treasury usage for strategic investments requires alignment with NFsTay’s long-term vision and partner interests.

  10. Protocol Enhancements Funds support continuous improvement of NFsTay’s platform, product development, and ecosystem richness.

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