Unmanaged Reserve
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The Unmanaged Reserve (UR) is where stablecoins are stored after they have been used to purchase $KSL, before they are allocated to a Fund where they will be actively managed. This ensures that the value of all newly minted Kingsilver is not arbitrarily exposed to volatility while the stablecoins await management.
Once more stablecoins are accepted the Unmanaged Reserve will need a diverse selection of those stablecoins so Kingsilver is never exposed to the risk of any one stablecoin failing, and this diversification will happen automatically once payment is made.
At launch it will only be possible to purchase $KSL with one USD stablecoin, but once other cryptocurrencies are accepted as payment, tokens will be automatically swapped for the desired stablecoin and stored in the Unmanaged Reserve.
All profits generated by that are paid out to and are subject to a Capital Gains tax that is swapped for a stablecoin and transferred to the Unmanaged Reserve. The success of all Investment Funds then contribute to the value appreciation of $KSL and provide more capital that can be potentially allocated to every fund in the ecosystem.
The Capital Gains tax for Depositors is fixed at 5%, while the tax percentage for Stakers (who are taking less risk than Depositors) is dynamically adjusted to incentivise market behaviour that ensures the Unmanaged Reserve's balance is always more than sufficient to allocate capital to funds when needed.
When the Unmanaged Reserve balance drops below a certain threshold the Capital Gains tax for Stakers will increase, signalling to the market that Kingsilver is set to appreciate in value, stimulating OTC $KSL purchasing which increases the Unmanaged Reserve balance, while tempering $ASLN staking since profits will be reduced. If the Unmanaged Reserve balance keeps decreasing, the tax percentage will continue to be raised, until it reaches 100%.
When the Unmanaged Reserve balance exceeds a certain threshold the Capital Gains tax for Stakers will decrease, which will slow OTC purchasing, and/or increase the demand for $ASLN, since $ASLN stakers will then keep a greater share of their capital gains. If the Unmanaged Reserve balance keeps increasing relative to the $ASLN being staked, the tax percentage will continue to be lowered, until it reaches 0%.