Risks
Reflexive rewards, regulatory grey area, real tun illiquidity, holder concentration, vault drain risk, and seed value decay — stated here so someone else doesn't state them less charitably.
Stated here because someone else will state them anyway, less charitably.
- Reflexive rewards. Distributions track fee volume with no floor under them. Dead volume means dead yield. The dual pool balances who earns, not whether there is anything to earn.
- Regulatory grey. Tokenized equities inside NFT-bound wallets on an exchange-branded chain is novel territory, and novel territory eventually attracts attention. Nothing in this protocol is a dividend, equity, or shareholder right, and every surface that shows a number says so.
- Tun illiquidity is real. A 90-day tun specimen genuinely cannot be sold, at any price, for any reason. That is the design. It is surfaced at the moment of the toggle with an explicit confirmation, not buried in a footnote.
- Holder concentration. 1,200 items will concentrate. Publish the distribution rather than hiding it.
- Vault drain. Fixed pricing plus a rising token price is the known attack. The reserve floor is load-bearing and must be modeled against real volume before mainnet.
- Seed value decay. The extremophile basket is high-beta by design. A specimen's TBA can be worth meaningfully less than at mint. Show the mark, never the cost basis alone.
None of these six are hedged elsewhere in this document by design — the reflexivity disclosure in §5, the tun-toggle confirmation in §4, and the raw/multiplier/mark columns in §3 are the actual mitigations, and each is a UI or contract decision, not a caveat added after the fact. "Show the mark, never the cost basis alone" specifically means the terminal displays a specimen's current TBA value without also implying what it was worth at mint — a cost-basis comparison invites a "down bad" framing that a live mark by itself does not.