Minting
What is ₮?
₮ is the token used to participate in Taco's USDT revenue distributions through staking.
Balances are visible onchain. Staked ₮ is held by the staking contract, which records each address's stake.
How many tokens does a loss mint?
₮ is minted only when a position closes at a loss or is liquidated, in the same transaction and directly to the trader. Deposits, openings, unrealized losses and winning or break-even closes mint nothing. If minting fails, the close or liquidation reverts.
| Case | Minting base | Added to book LP |
|---|---|---|
| Loss close, position funded from your balance | Loss minus the loss fee actually collected (2% when the queue is empty; no fee when it isn't) | Same as the minting base |
| Loss close, position funded from queued profit | Canceled queued amount minus the loss fee actually collected | Same as the minting base |
| Liquidation, position funded from your balance | Full margin | Margin minus the 2% liquidation fee (full margin when the queue isn't empty) |
| Liquidation, position funded from queued profit | Queued amount used as margin | Same as the minting base |
All losing positions closed with one signature are added into one minting base. Winning positions in the same batch do not offset it, but their payouts are deducted from book LP first.
The mint rate depends only on book LP and H, not on any token price. All markets use the same rate.
Why is the early rate higher?
When book LP is below $2 million (including below zero), every $1 of minting base mints 100 ₮.
Minting base that lands above $2 million is in the tail. H is the cumulative minting base minted in the tail, and the tail rate is 100 × (S ÷ (S + H))², with S = $120 million: about 44 when H is $60 million, 25 at $120 million and 11 at $240 million. A loss that crosses $2 million is split: the part below mints at 100, the rest at the tail rate, integrated over the range it covers.
H only increases. Winner payouts and overflow lower book LP but not H. If book LP falls below $2 million again, minting returns to 100 ₮ per $1, and the retained H applies the next time book LP is above $2 million, so the rate depends on the pool's history.
A higher rate means more tokens per dollar of eligible loss. It does not guarantee a larger return.
How can I acquire ₮?
Only through trading losses. ₮ cannot be bought, sold or transferred.
Where do minted tokens go?
By default, newly minted ₮ enters flexible staking. In the app's settings you can change the destination.