NO UNBACKED DR FOR REWARDS
If DR claims basket backing/exposure, no DR may enter circulation without the required economic exposure / collateral / creation mechanism being satisfied. Proof of Evidence must never silently create unbacked DR.
UNBACKED MINT BLOCKED=TRUE · WOULD DILUTE IF FORCED=TRUE · UNTIL LIQUIDITY=USD_USDC_CREDITS
A · TRANSFER
Circulation is a transfer. Supply and NAV unchanged. This is the only DR bounty path that needs no market and no new creation.
Requires: Requester already holds backed DR (acquired via C/R or secondary).
If missing: If the requester has no DR, the bounty cannot open. Must not mint to fill the gap.
B · BUYBACK
USD pays the work. DR is purchased from existing holders (or an AP). No unbacked mint. NAV unchanged if the purchase is secondary.
Requires: A real DR market with executable size, or an AP willing to create then sell.
If missing: No issued DR, no APs, no book. Today this path cannot execute. Do not fake a fill by minting.
C · REVENUE_BUYBACK
Mechanism preserves NAV (buy then transfer). Revenue today = £0 so the path cannot run. Same no-mint property as B once units are in treasury.
Requires: Actual protocol/company revenue AND a DR market (or AP window) to buy from.
If missing: No fees. Counting a paper buyback as a treasury is fiction. Unbacked mint from 'future fees' is still unbacked.
D · PREFUNDED_POOL
The mint happens once, at funding, with backing. Later PoE grants must not mint again. Who funds is a capital question, not a PoE question.
Requires: Someone funds the pool with basket/cash at creation (AP, grantor, or warehouse). Then rewards are transfers from the pool.
If missing: An 'unfunded reward pool' is unbacked mint. Founder allocating 1B unissued DR is not a pool.
E · CREATION_FUNDED
This is the honest way to create new DR for a reward: the exposure exists first. It is AP C/R applied to a bounty, not a shortcut.
Requires: Atomic delivery of basket/cash equal to NAV × units before the contributor is paid.
If missing: If the basket is promised, delayed, or valued at a stale NAV, this collapses into unbacked mint.
F · FEE_TRANSFER
No new units. The fee is a transfer. Bootstrap problem: nobody holds DR until it exists.
Requires: Users who already hold DR, or a way to acquire it (C/R or secondary).
If missing: Cannot collect DR fees before issuance. Do not mint fee-receivable DR in advance.
UNBACKED · POE_REWARD_MINT
Blocked by invariant (UNBACKED_MINT_BLOCKED). If forced anyway: supply 1000 → 1050, NAV 100 → 95.23809524, dilution -0.04761905. Coverage and redemption integrity break.
Requires: Must never be permitted if DR claims basket backing.
If missing: Holders are diluted. Tracking error is hidden inflation. This is insolvency if redemptions are promised.