What is Trumpet?

$TRUMPET token is a perpetually increasing asset providing a long term store of value within the Elephant Money ecosystem. It is backed 100% by the native $TRUNK stablecoin. Mint and Redeem taxes ensure the TRUNK/TRUMPET ratio can only ever increase. It is 100% immutable with no administrative functions and has zero reliance on third party liquidity. Trumpet provides an additional use case for the Trunk token and is designed to lock up more of the circulating Trunk supply.

The $TRUMPET token is designed to reward long-term holding by increasing a holder's claim of the backing asset ($TRUNK). Similar to traditional staking and yield farming, as transaction volumes build, so to do the rewards for all holders. The difference and overall benefit between Trumpet token rewards to the rewards of traditional staking is the ratio of $TRUNK/$TRUMPET can only ever increase. This is because $TRUMPET does not employ a traditional liquidity pool for determining value. The $TRUMPET token utilizes a built-in contract exchange system available exclusively on the Elephant.Money dApp, this removes the need for a traditional liquidity pool. Rather than a liquidity pool pair of the backing asset to the token using a traditional market maker method for exchange and price calculation, both assets are stored within the contract itself. The price of $TRUMPET is simply $TRUNK Backing Supply divided by $TRUMPET Circulating Supply. An easy way to understand how the price can go up both on sells and buys (redemptions and mints) we can simply think of the $TRUNK Backing Supply always having a net positive gain on each transaction. For a redeem (sell), more tokens are burnt than paid out for a net gain in $TRUNK Backing Supply. For a mint (buy), more $TRUNK is allocated to the $TRUNK Backing Supply than $TRUMPET tokens minted to circulation for a net gain as well. The net gain comes from the mint/redeem fees adding more to the $TRUNK Backing Supply compared to the amount minted/paid out.

☑️ A store of value backed by TRUNK that only goes up in value

☑️ Zero transfer or dev fees

☑️ Pay a low 5% fee on mint and redeem to fund the internal treasury

☑️ No pump and dump is possible and single sided liquidity is locked in the contract

☑️ 100% immutable with zero administrative functions

☑️ Extra transactional volume is generated by the growing Elephant Treasury

The $TRUMPET token is 100% backed and will always have a backing. There are no algorithmic or inflationary mechanisms, as every token in circulation must be bought (minted). $TRUMPET tokens will always be redeemable for the price listed, minus the redemption fee.

Both Minting (i.e.Buying) and Redeeming (i.e. Selling) through the Mint and Redeem contracts will cause price appreciation.

There will be no capped supply.

• Supply is determined by mint and redemption volume.

• Minting increases supply.

• Redemption reduces supply.

  • Redeemed $TRUMPET tokens are burnt/destroyed and removed from circulation.

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%

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%