Policy Levers

Policy leverage is the primary way for ORIGIN to self-regulate irrational and out-of-control reflexivity under market conditions. Policy levers then serve as focal points, either counteracting or cooperating with external market forces to maintain internal productivity.

Staking Reward Rate: This metric determines the number of new LGNS minted for stakes. Then, the percentage of staked LGNS determines the annual income (APY). Bond sales volume and the reward rate together determine the supply growth rate. Each minted LGNS token must be backed by one risk-free value unit. The reward rate is combined with the percentage of the total LGNS supply staked to arrive at the APY. APY is the primary internal measure of internal alignment. It is an inverse measure of ORIGIN's health. When ORIGIN is doing well, the APY will be lower because the reward rate will be lower (meaning the protocol has been around longer), and there will be a high staking percentage (meaning there is longer), implying long-term internal confidence.

Bond Control Variable: The policy team partially controls this measure to incentivize the precise treasury composition ORIGIN desires. What kind of reserve assets does ORIGIN need to consider if it wants to support the value of LGNS, such as liquidity provider and stable currency assets? Each asset has different reserve-backed attributes that must be weighed to achieve healthy growth and sufficiently stable reserve support. The bond control variable is an internal measure of external price coordination because it sets the discount rate for purchases directly from the protocol rather than from a third-party market maker.

Above RFV: This is not a policy lever but a market measure. The transaction value of each LGNS token is higher than the value of the stablecoin backing each token. That's a multiple comparable to the price-to-earnings ratio that value investors are familiar with. Premium is an external / price measure of internal coordination; LGNS trades at a higher price than RFV because the external market perceives effective internal coordination from ORIGIN contributors. This external view reflects that investor staking ratios for LGNS will remain high, contributors will continue to work for ORIGIN, the protocol will continue to expand its network to form new partnerships, and demand for LGNS will remain high. Ping's confidence increases. Therefore, the premium relative to RFV measures ORIGIN's economic productivity and expected future cash flows. The market sets this measure rather than directly by the ORIGIN policy team, but policy levers can influence it.