PACTs
From Commitment to Credit — PACTs are the primary onboarding mechanism for 3.Finance. A single 10,000 crvUSD purchase begins a 12-month maturity journey that transforms a Purchaser into a Protocol Creditor.
Adolescent PACT Purchase
An Adolescent PACT is purchased with a single transaction of 10,000 crvUSD. The moment the purchase is confirmed, the funds are allocated deterministically — no governance votes, no manual intervention.
Immediate Fund Allocation
1% → Settlement Pledge
100 crvUSD immediately and permanently joins the Settlement Pledge — the constitutional floor that backs every GUILD in circulation. This happens from day one, before any maturity begins.
0–33% → Variable Rebate
A variable portion (between 0% and 33%) drips back to the purchaser over the 12-month maturity period. The exact rebate percentage is determined by protocol conditions at the time of purchase.
Remainder → Arbitrage Master Node
The remaining balance flows to the Arbitrage Master Node (AMN). During the 12-month maturity period, the AMN's Arbitrage Engines deploy this capital for PHA Acquisition — growing the Treasury and strengthening the protocol.
The 12-Month Maturity Journey
Adolescent PACT Created
10,000 crvUSD purchase confirmed. 1% immediately to Settlement Pledge. Rebate schedule begins. AMN receives deployment capital. Status: Purchaser.
Maturity Period (Not Vesting)
During the 12-month maturity period, the Arbitrage Engines deploy capital for PHA Acquisition — growing the Treasury. The variable rebate drips back to the purchaser. The PACT is not transferable during this period. This is maturity, not vesting — there is no cliff, no linear release, no partial unlocking.
Aged PACT — Conversion at Holder Discretion
After 12 months, the Adolescent PACT becomes an Aged PACT. Conversion is at the holder's discretion — not automatic. When the holder chooses to convert, 10,000 GUILD is minted into the SSLP (Sovereign Stability Liquidity Pool) and the holder receives a 3Fi allocation. Status transforms: Purchaser → Creditor.
Three Paths After Maturity
Once an Aged PACT holder converts to Creditor status, three distinct paths become available:
Hold as Creditor
Remain a Protocol Creditor. Receive distributions from the Creditors POD during each epoch. Participate in Guild domain governance. 10,000 GUILD remains available for lending in the SSLP.
Exchange Window
Exchange the Aged PACT for ETH at the prevailing internal ratio: Vault ETH ÷ Outstanding GUILD. The protocol acquires its own obligation — GUILD supply remains intact, but obligation density decreases.
Legend Reservation
Lock 50 Aged PACTs to reserve a Legend seat (escalating via prime sequence for additional seats). Become a constitutional guardian with 9% ETH allocation share and protocol defense capabilities.
Startup Tokens: PRIME & ALPHA
Startup Tokens (PRIME and ALPHA) are ERC-20 tokens that provide a special bypass path. They convert 1:1 to Aged PACTs, skipping the 12-month maturity period entirely.
Startup Token Fund Flow
100% of Startup Token proceeds flow to a multi-sig wallet, then to the GuildSwap FARM for PHA Acquisition, which grows the Treasury. This ensures early participants contribute directly to protocol capitalization while receiving immediate Creditor status.
The Exchange Window — Liability Retirement
The Exchange Window is how the protocol acquires its own obligations. When an Aged PACT holder exchanges through the window:
ETH Out to Holder
The holder receives ETH at the prevailing ratio: Vault ETH ÷ Outstanding GUILD. This is earned equity being returned, not a redemption of collateral.
PACT Flows In to Treasury
The PACT flows into the Treasury. The 10,000 GUILD remains available for lending in the SSLP — supply is intact, but external obligation density decreases.
Liability Density ↓ → Unencumbered Currency
GUILD supply remains intact. Only the obligation density decreases. This is how GUILD progresses toward becoming a fully unencumbered sovereign currency.