Docs/Protocol/The Reserve
Redemption
Burn $KYZN for its share of every Reserve asset, at backing minus 2%.
- Pays
- Backing minus 2%
- Paid in
- Every Reserve asset
- Cooldown
- None
- Tax
- None
#Redemption pays in kind
Any holder can burn $KYZN at the Reserve for its share of every Reserve asset. The share is the amount burned divided by the total supply, less 2%. The 2% stays in the Reserve.
paid = Reserve balance × amount burned ÷ total supply × 98%
- Reserve balance
- The ETH, and each stock token less what is claimed in it
- Total supply
- $KYZN supply before the burn
- 98%
- Backing minus 2%
| Rule | Value |
|---|---|
| Paid in | Every stock token the Reserve holds, and its ETH |
| Fee | 2%, kept by the Reserve |
| Cooldown | None |
| Tax | None: the Reserve is exempt |
| Prices | None read: redemption pays in kind, so it needs no fresh price |
| Staked $KYZN | Unstake it first |
| An unreadable asset | Skipped: every other asset still pays, and its share stays in the Reserve |
- Total supply
- 1,000,000,000 $KYZN
- Share burned
- 0.1%
- Paid, less 2%
- 0.098% of each asset
- Reserve holds 50 ETH
- 0.049 ETH
- Reserve holds 400 NVDA
- 0.392 NVDA
- Reserve holds 300 AMD
- 0.294 AMD
Example holdings. Every other asset the Reserve holds pays the same 0.098%.
In the app, Redeem reads the exact amounts from the Reserve’s own preview before you send. When the approval is short, the wallet asks for two transactions: an approval of exactly the amount, then the redemption.
Backing per $KYZN is the Reserve’s value divided by the total supply. Redemption pays backing minus 2% in kind; it sets no floor under the market price.
#Paused stock tokens
The seven stock tokens run behind one beacon, so one issuer action can pause all of them at once. Redemption never waits for a paused token. It pays every other asset at once and records the paused token’s share as a claim. With every stock token paused, it pays the ETH and records a claim in each.
| Claim rule | Value |
|---|---|
| Recorded | Per wallet and per stock token, at the amount owed |
| Collected | Once the token transfers again, in Redeem |
| Priority | Claims come first: later redemptions pay only from the balance above what is claimed |
| New tokens | Tokens the Reserve receives later, from a purchase for example, go first to open claims |
| Expiry | None |
If the issuer burns
If the issuer burns the Reserve’s balance of a token below what is claimed in it, each claim pays its part of the balance at the time it is collected, rounded down, and clears in full. Claims collected at the same balance bear the same cut. A claim on a balance burned to zero clears and pays nothing.
paid = your claim × Reserve balance ÷ total claimed
- Applies
- Only while the Reserve’s balance is below the total claimed in that token
- Otherwise
- The claim pays in full