# GPX Liquidity Strategy

### **Hard-Capped Supply**

* **Total Minted:** 100 million GPX tokens are minted on Day 1.
* **Immutable Custody:** All tokens are transferred to the ownerless, immutable GPX V4 Hook contract, ensuring no party (including GoldPesa) can alter their release schedule.

### **Initial Uniswap V4 Pool**

* **Pool Setup:** The GPX V4 Hook contract launches a GPX/USDC pool on Uniswap V4 at a starting price of $1 and a 0.00% fee tier.
* **Permanent Liquidity:** The corresponding Liquidity Provider (LP) NFT is held by the GPX V4 Hook contract, with no mechanism to remove or transfer it out.

### **First Liquidity Position**

* **Range:** The initial liquidity position spans from $1 to “infinite.”
* **Token Allocation:** 100,000 GPX tokens are placed in this position on Day 1, establishing a secure baseline of liquidity.

### **Demand/Distribution-Based Supply Release**

* **Periodic Checks:** At set intervals, the GPX V4 Hook contract measures the total circulating supply minus any GPX held in the GoldPesa Treasury.
* **Simulation:** The contract simulates all circulating GPX (excluding treasury-held tokens) selling into the pool simultaneously, essentially a “run on the bank” scenario.
* **Rebalanced Lower Range:** This simulated price becomes the new lower boundary for the Uniswap V4 position.
* **Proportional GPX Deployment:** New GPX tokens are added to the pool in accordance with the updated price floor. The USDC liquidity already in the pool remains in place, creating a demand-driven distribution mechanism.

### **Correlation to the GoldPesa Treasury**

* **Transaction Fee Flow:** The GoldPesa Treasury receives 0.50% of every GPX transfer and 0.25% of every GPX swap.&#x20;
* **Distribution Metric:** Since Treasury inflows mirror overall GPX transaction activity, this measure is used by the GPX V4 Hook contract to gauge real-world distribution and adjust the release of tokens accordingly.

### **Immutable & Self-Regulating Model**

* **No Manipulation Incentive:** Generating fake volume to influence price is costly (1% transaction fee applies), and transferring GPX to the Treasury only locks tokens away, offering no economic gain.
* **Automated Logic:** All conditions and calculations are hard-coded and ownerless, eliminating human interference or external control.

### **Long-Term Liquidity & Price Stability**

* **Growing Floor Price:** As adoption increases and more GPX transactions occur, the pool’s lower price bound is rebalanced upward over time.
* **Efficient USDC Utilization:** USDC liquidity remains in the pool, providing consistent depth for buyers and sellers, even years into the future.
* **Enhanced Trust & Accessibility:** The self-regulating nature of the GPX V4 Hook contract instills confidence that liquidity remains robust, enabling larger trades with minimal slippage as GPX reaches broader adoption.


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