Treasury

Wallet Address 0x4E5e196De123D4C73da4197fB3b663709E541299

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. Cashflow for Property Purchases

NFsTay’s treasury enables cash purchases of new properties, allowing the team to secure better deals and improve partner returns. By making cash buy offers, NFsTay can negotiate favorable terms, ultimately benefiting all shareholders. Once the property shares are sold, the funds are returned to the treasury.

The NFsTay team reserves the right to choose between using the funds directly or leveraging Bitcoin as collateral to secure loans for purchases. This approach retains Bitcoin exposure, aiming to maximize gains for shareholders while maintaining operational flexibility.

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 and Conditions

The NFsTay Treasury is a core feature of the platform, designed to support the ecosystem while providing flexibility and long-term value. Below are the official rules and conditions governing its operation:

1. Ownership: The Treasury funds are owned and managed by the NFsTay team, not the partners. These funds are made available to support liquidity and growth but are ultimately under the team’s discretion.

2. Liquidity Limitations: The Treasury reserves only 10%-20% of the funds raised for liquidity purposes. Therefore, it cannot guarantee exit liquidity for all partners simultaneously. Liquidity support is provided on a best-effort basis.

3. Asset Allocation: The Treasury maintains a 90% BTC and 10% STAY allocation. Rebalancing is automated via smart contract but may be adjusted by the team in response to market conditions.

4. Rebalancing Mechanism: If BTC exceeds 90% of the portfolio due to price appreciation, the Treasury sells BTC to purchase STAY, maintaining the target ratio. However, STAY will not be sold to rebalance if it exceeds 10% of the portfolio.

5. Operational Flexibility: The NFsTay team has full discretion over when to buy, sell, or leverage assets held in the Treasury, with the aim of maximizing shareholder value and ensuring operational stability.

6. Risk Mitigation: While the Treasury provides liquidity and supports growth, it does not eliminate investment risk. Partners are advised to consider this in their investment decisions.

7. Market Volatility: Treasury decisions, including rebalancing and asset allocation, are subject to market volatility and broader economic conditions. The team will act prudently but cannot guarantee outcomes.

8. Transparency: All Treasury transactions and rebalancing actions are recorded on the blockchain, ensuring an immutable and transparent record of activities.

9. Strategic Investments: The Treasury may invest in opportunities outside of the primary real estate portfolio, provided these align with NFsTay’s mission and benefit the ecosystem.

10. Protocol Enhancement: Treasury funds may be allocated for protocol enhancement, including R&D, marketing, and collaborations, as outlined above.