DING Token
Price-stable money for everyday transactions. Elastic supply. No governance rights. Pure medium of exchange.
Overview
DING is the Protocol's transactional currency. Its purpose is to be boring. If DING is exciting, the design has failed. Stability is the feature; volatility is the bug.
DING is minted by depositing USDC and MULKI collateral at the current collateral ratio. It is burned to reclaim collateral value. The supply expands and contracts automatically based on market demand.
Mint & Redeem
Minting DING
Users create new DING by depositing USDC and MULKI at the current collateral ratio. If the collateral ratio is 90%, depositing $0.90 of USDC and $0.10 worth of MULKI mints 1.00 DING.
- No lockup
- No KYC
- No permission
Standard Redemption
Burn 1 DING, receive $0.90 of USDC and $0.10 worth of MULKI (at current collateral ratio). This contracts supply and raises the collateral ratio.
MULKI-Only Redemption
Burn 1 DING, receive only MULKI. More expensive for the redeemer but preserves USDC in the Protocol Treasury. The self-healing path: the system sacrifices governance tokens to protect collateral reserves.
Collateral Ratio
The collateral ratio (CR) determines how much collateral backs each DING token:
| Phase | Collateral Ratio | Mechanism |
|---|---|---|
| 1 | 1.00 (100%) | Fully collateralized USDC |
| 2 Step 1 | 0.97 (97%) | 60% supermajority required |
| 2 Step 2 | 0.95 (95%) | 65% supermajority required |
| 2 Step 3 | 0.93 (93%) | 70% supermajority required |
| 2 Step 4 | 0.90 (90%) | 75% supermajority required |
| 3–5 | ≤ 0.90 | Bond-based stabilization |
Redemption Fees
The redemption fee is CR-gated and flat-tiered, not exponential:
| Collateral Ratio | Redemption Fee |
|---|---|
| > 98% | 0.1% |
| 95% – 98% | 0.3% |
| 90% – 95% | 0.5% |
| < 90% | 1.0% |
The fee is predictable and bounded. Users know the maximum cost before they redeem. Simplicity is a security feature; complexity is an attack surface.
AMM Price Discovery
The Protocol uses a constant-product AMM for the DING/USDC pair. The AMM serves three functions:
- Liquidity for everyday trading
- Transparent price feed
- Mechanism for Protocol Treasury intervention (Phase 4+)
Security through scale: as the system grows, the cost of manipulation grows proportionally.