Why does the $FT chart look stable even though tradable FT does not come with downside protection? Because @flyingtulip_ changes the exit mechanics. Raise participants are not forced to use the secondary market to get out, which removes a major source of sell pressure. 🧵

Investors can get their money back without selling $FT on the market. That means FT does not need to hit the secondary market just for raise participants to exit, which means less downward pressure on tradable FT. And FT goes to non-circulating supply, which can later be burned!

On top of that, capital from PUT withdrawals are placed as limit orders at withdrawal NAV. So the structure does two things: 1- it bypasses forced market selling 2- creates limit buy orders from capital collected from PUT withdrawals.

The upside comes when revenue linked buybacks begin to scale. 100% of protocol revenue goes toward buying back $FT from the market. So the structure reduces forced sell pressure on exits, while upside is tied to product revenue and market buybacks.

TLDR Every PUT exit & withdrawal creates scarcity for $FT and increases value cap for those who stay. Hold PUTs: downside is protected by collateral. Hold $FT: downside is supported by the mechanism, though not guaranteed. The upside comes from product-linked revenue generation.