MicroStrategy proved treasury-per-share is a powerful concept.
But MicroStrategy still has the corporate baggage:
debt, preferreds, dividends, refinancing risk, dilution, and human discretion.
STRAT keeps the useful part — accretive treasury mechanics — and removes the wrapper.
No company.
Just the ratchet. And it keeps on turning.
https://t.co/ibY1QqD6t1
Reserve stays the same.
Supply falls.
Floor rises.
R flat, S down, N up.
This is the central ratchet:
more reserve per token, or fewer tokens against the same reserve.
Either way, N increases - the floor rises.
The more in reserve, the stronger the $STRAT.
The core equation of $STRAT is as follows:
N = R / S
Where:
R = reserve, held in wETH
S = STRAT supply
N = reserve-per-token, or “floor”
This is the number the whole system is built around.
Every mechanism in STRAT is designed to push N upward.
The purpose the 2% fee does for the reserve is simple:
When above floor: reserve grows.
When below floor: treasury buys and burns.
When minting: issuance must be accretive.
The game is this:
increase reserve-per-token, the floor raises permanently.
https://t.co/Y6b3ifnq3Q
Where does the 2% fee on every $STRAT tx go? Not to a team wallet - but into an on-chain reserve of wETH that backs $STRAT.
This reserve has only one exit: buying $STRAT off the market and burning it. None of these funds can be withdrawn or lent - it's completely untouchable.
Thus, every trade raises $STRAT's floor - for eternity.
Currently, it holds around 2 ETH, dedicated to fully backing the token.
View the reserve: https://t.co/fzoRYlrAi7
$STRAT is a locked system.
There's no owner. No admins. No multisigs. No upgrade path. No off switch. Nobody — not even us — can touch the reserve, mint outside the rules, or change a single line.
It was immutable the instant it deployed.
Every trade feeds the reserve.
The reserve-per-token - the floor - only goes up. No owner, no vote, no multisig can release it. This isn't our policy, it's just how the math works.
and it works for as long as $STRAT exists.