TACO and minting

What is TACO?

TACO is the token used to participate in Taco's USDT revenue distributions through staking.

How many tokens does a loss mint?

Three inputs determine issuance:

TACO minted = minting base × mint rate × holding-time weight

The tokens are minted in the same transaction as the close; if minting fails, the close reverts. The token's market price is not an input to the mint rate. All markets use the same rate.

Why is the early rate higher?

When book LP is below $2 million, the mint rate is 100 TACO per $1 of minting base, before the time adjustment.

Beyond that threshold, issuance enters a declining phase. The rate falls as cumulative progress in that phase increases. It does not suddenly drop at $2 million: at $60 million of cumulative progress the rate is about 44, at $120 million about 25, at $240 million about 11.

If book LP falls below $2 million again, the rate returns to 100. Cumulative progress is not reset; it only increases, so the rate depends on the pool's history.

A higher rate means more tokens per dollar of eligible loss. It does not establish their future price or guarantee a larger return.

Why does holding time matter?

Without a time adjustment, users could open offsetting 1,000× positions and deliberately liquidate them within seconds to mint tokens.

The holding-time weight is w = min(holding time ÷ T, 1), measured from opening to close or liquidation, with T = 10 minutes: 1 minute gives 10%, 5 minutes 50%, 10 minutes or more 100%. It applies to liquidations as well. It multiplies only the number of tokens minted, not the loss itself. T may be recalibrated once from real trading data after launch.