It is the process of MINTING and REDEEMING Trumpet that ensures the $TRUNK/$TRUMPET ratio only ever goes up. $Trumpet can only be minted through the dApp using the native $TRUNK stablecoin.

MINT:

Minting (buying) $TRUMPET can only be done through the dApp with $TRUNK already held by the user.

All mints charge a 5% mint fee.

REDEEM:

Redemption can be considered selling $TRUMPET in an OTC (Over the Counter) direct exchange between the user and the protocol with no price impact beyond the Redemption Fee. All redemptions charge a 5% redemption fee.

Fee Breakdown: Mint Fee - 5% (Collateralized backing of the token) Redeem Fee - 5% (Collateralized backing of the token) Transfer Fee - 0%

One of the key differences between the $TRUMPET token and other similar tokens is the additional volume that will be generated through the TRUNK Buyback Strategy. Not only does the TRUNK Buybacj Strategy contribute to the volume going through the $TRUMPET contract, but, because any $TRUMPET minted via TRUNK Buyback Strategy are immediately burned, while still being added to $TRUNK Backing Supply, it means the price impact is much more significant than normal mint/redeem. Example: Before: Current $Trunk Backing Supply - 4,000,000 Trunk Current Circulating Trumpet Supply - 3,000,000 Trumpet $Trumpet Price = 1.33 Peg Support Strategy buys 100,000 Trunk which mints 71,428 Trumpet (after tax) After: $Trunk Backing Supply - 4,100,000 $Trunk Circulating Trumpet Supply - 3,000,000 $Trumpet (the $Trumpet minted is immediately burned) $Trumpet Price = 1.366 Price impact of the transaction = +2.7% Now - Let's compare a regular user minting trumpet using the same figures: Before: Current $Trunk Backing Supply - 4,000,000 Trunk Current Circulating $Trumpet Supply - 3,000,000 $Trumpet $Trumpet Price = 1.33 User Mints 100,000 Trunk = 71,428 Trumpet (after tax) After: $Trunk Backing Supply - 4,100,0000 $Trunk Circulating $Trumpet Supply - 3,071,428 $Trumpet (the $Trumpet minted is added to circulating supply) $Trumpet Price = 1.334 Price impact of the transaction = +0.3%