Minotaur.Money has implemented Fractionality code to account for protocol reserves more flexibly. The underlying TIME/OHM code requires the number of tokens in the treasury to equal or exceed the number of native tokens in existence, but it does not account for the values of individual reserve tokens. Minotaur.Money has a changeable Fractionality variable that allows fractional reserves: the treasury can be required to maintain a number of tokens as small as 1% of the number of MINO tokens in existence.
Allowing the treasury to contain fewer tokens accomplishes several goals:
  • Accounts for higher-valued reserve tokens: the underlying code assumes that single reserve tokens have USD stablecoin valuations in determining whether to allow minting. Fractionality allows us to correctly account for high-valued reserve tokens such as WBTC.
  • Permits liquidity farming: additional income can be earned by using treasury funds for liquidity farming in other protocols. Tokens must be withdrawn from the treasury and deposited in those other protocols in order to participate.
  • Enables cross-chain deployment: treasury reserves can be deposited in protocols across multiple blockchains if fractional reserves are allowed.
  • Decentralized VC: the DAO can make early-stage investments in other dApp products, including technology acquisitions, that could generate income for the protocol.