Circuit Breaker System
As a general rule, minting is done in $NDT, but ETH may be used if the following conditions are met. (Such a situation is defined as a circuit breaker system)
- When the price of $ NDT continues to rise significantly deviating from actual demand.
As a background, a speculative token price increase that deviates from real demand may trigger a subsequent large token decline and consequently undermine the healthy growth of the project.
In order to prevent this, the tokens to be used at the time of minting, which is a major source of demand for $NDT, will be made ETH to temporarily reduce the demand for $NDT consumption and purchases, thereby reducing the rise in the token price.
ETH in the treasury will be used to provide liquidity and buy-back burn of NDT.
Also, the amount of $ETH required to do so will be based on the price of ETH /NDT from Oracle.
The applicable items will be as follows. Not all items will be implemented at the same time and it will be based on the demand for token consumption at that time.
- NFT Mint
- Re-summon
- Level up (Prophet)
- Level up (Darkness)
- Purchase of Potion,Shield, Counter NFT
Users will be notified in advance when Circuit Breaker is implemented. However, it may be terminated without prior notice.
In principle, the Circuit Breaker system only changes the settlement currency from $NDT to $ETH.
However, if this does not prevent the price from rising, other measures may be taken.
Also, due to the way Nannda is structured, the supply of NFTs is likely to be limited by Deposit. Therefore, if the price of NFTs rises excessively due to a lack of supply, and if there is no supply of NFTs from users by Mint, Nannda team may adjust the volume of sales as part of a circuit breaker to encourage new users.