VICTORY instruments finance the initial DIH Treasury to fund patient subsidies, prizes, and platform build-out. Repayment is designed to come from sovereign contributions pledged under the 1% Treaty. This document defines the instrument types, cash flows, incentives, and guardrails.
- VICTORY Bonds (Debt-like)
- Fixed coupon with defined maturity; repayment funded by 1% Treaty flows and program cash flows.
- Transfer-restricted until compliance checks clear (jurisdiction-dependent).
- VICTORY Tokens (Utility/Governance-linked)
- Used to fund verifiable actions (e.g., referendum referrals) and optionally confer governance rights.
- Not designed to promise profits; avoid financial-return claims to mitigate securities risk.
- Target raise: initial
\$50M–\$500M program treasury.
- Coupon: 2–6% floating with performance step-down if treaty inflows exceed thresholds.
- Maturity: 5–10 years; optional amortization tied to inflow receipts.
- Seniority: Program senior; explicit waterfall published on-chain.
¶ Collateral and Repayment Sources
- 1% Treaty sovereign contributions into DIH Treasury vault(s).
- Earmarked portion of philanthropic and corporate partner inflows.
- Optional reinsurance/guarantee facilities if available.
¶ Transparency and Protections
- On-chain escrow accounts; monthly proofs of reserves and liabilities.
- Public dashboards showing: inflows, coupon accruals, coverage ratio, and runway.
- Independent audits and covenant checks; breach → automated pause and governance review.
Investors realize their returns through two primary, transparent mechanisms, depending on the instrument they hold. These are designed to be simple, predictable, and backed by the full financial power of the DIH treasury.
This mechanism is designed for predictable, steady returns, analogous to a traditional government bond.
- Mechanism: Direct Annual Payouts.
- How it Works: The DIH treasury receives $27+ billion in annual revenue from the 1% Treaty. A contractually obligated portion of this income is used to make direct, annual cash payments to bondholders. These payments cover both interest (yield) and a portion of the principal until the bond matures.
- The Result: A reliable, passive income stream for the duration of the term, with the full principal and profit returned by the end.
This mechanism is designed for high-growth returns, driven by the increasing value of governing the DIH. It is analogous to owning equity in a high-growth company.
- Mechanism: Value accrual, realized via treasury buybacks or secondary market sales.
- How it Works:
- Treasury Buybacks: The DIH DAO can vote to use a portion of its massive annual surplus (e.g., a percentage of the $19.77B+ annual net income) to buy back VICTORY bonds from the market. This provides a constant source of liquidity for investors who wish to sell and creates sustained buying pressure, driving up the token's value.
- Secondary Market Sales: As the world's most powerful governance token, VICTORY bonds will be highly sought after and traded on regulated, liquid secondary markets. An investor can sell their tokens at any time at the prevailing market price, just like selling shares of a company.
- The Result: Investors can realize their gains by selling their appreciating asset, either back to the treasury or to other market participants who want to acquire governance power.
- U.S. securities analysis should assume the Howey test may apply to bond-like or return-bearing instruments.
- Reference: SEC v. W.J. Howey Co., 328 U.S. 293 (1946).
- Potential exemptions: Reg CF, Reg A, Reg S (offshore) depending on offer scope and investor base.
- KYC/AML: Mandatory for purchasers under most pathways.
- Jurisdictional strategy: staggered launches; geoblocking as required.
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