# Initial Network State

## Initial Network State

**A main area of questioning from early community members is $MOVE's market price**. It should be clear that our network is designed to increase supply. This combined with our other mechanics such as staking, minting and yields can result in volatility.

The MOVE team understands that in our growth stage, volatility is expected based on market sentiment, and therefore it is important for individuals to perform their own research (DYOR).

Over time, volatility can be mitigated through staking - an increasing share combined with a defined price floor means that there is a level at which profit becomes a mathematical certainty, assuming sufficient profits are generated by bond sales.

With tight policy and scale, MOVE should function well as a stable asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, MOVE DAO has the potential to act as a wealth creation machine. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created.

#### Alpha State <a href="#alpha-state" id="alpha-state"></a>

The initial network features a one-way treasury (money goes in, none comes out), the minting contract (through which supply increases and profits are produced i.e minting), and the staking contract (where profits are distributed).

The following are the initial policy states:

* **BCV -** BCV varies based on bond types . It is tuned regularly by the Policy team to meet the protocol goals. For example, if the protocol wants to accumulate more liquidity into its treasury, it can lower the BCV for allowing users to mint MOVE with LP to increase their bond capacity.
* **Bond/Mint vesting term -** It is set to a fixed number of Aptos blocks or approximately five days for all Minting Asset types.
* **MOVE distribution -** Every time someone Mints MOVE, the proceed will go to the MOVE DAO Treasury. A corresponding amount of MOVE will be minted and distributed to three parties:&#x20;

1. *Minter -* The Minter will receive the quoted amount of MOVE minted linearly over the vesting term.&#x20;
2. *DAO -* The DAO receives the same amount of MOVE as the minter. This represents the DAO profit.
3. *Stakers -* After accounting for the MOVE distributed to the minter and the DAO, the rest will be distributed among all stakers in the protocol.

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