How it works
One job: take the capital that trading activity produces and put it where it does the most good for the people still holding the token.
A portion of CNPY trading activity reaches the Ratchet as ETH. It is the only capital the mechanism ever has — nothing is minted and nobody tops it up.
The CNPY onchain average against the Endowment's onchain net asset value. Both sides read in the same transaction, in the same unit.
Above backing it buys tokenized stocks. Below backing it buys CNPY and retires it. Inside the neutral band it holds and keeps the capital.
The decision, drawn
No discretion — anyone may trigger it, nobody chooses the branchReading the current position from chain.
Why each branch helps a holder
The Endowment grows and stays redeemable. Buying back a token that already trades above what stands behind it would overpay.
CNPY is burned permanently, leaving each remaining token a larger share of exactly the same assets.
Near parity neither action is clearly better, and acting anyway only pays fees and invites gaming.
What stops it being gamed
An average must be moved and held to be manipulated. A spot price can be moved for one block.
If spot drifts more than the limit from the average, that asset is treated as unpriceable.
A branch must hold for a set period continuously before it can act.
No owner, no admin key, no upgrade path. The deciding contract can be replaced only by deploying a new one.