RePLENishment Trigger (RT)
The RePLENishment Trigger serves as a rebase mechanism. This feature causes the smart contract to collect fees and replenish the Treasury HODL with liquidity from token income. In addition, the smart contract initiates cash management operations by interacting with the liquidity contract on the Sushi V2 DEX using Arbitrum One (Ethereum L2).
Any Ethereum-user can activate the RePLENishment Trigger in a decentralized manner if the reward for completing this task makes economic sense for the trigger user. However, certain conditions must be met, such as the cool-down period of 24h (e.g. 1d is ≈6,500 blocks) and the thresholds for burning and buybacks must be reached. The community-driven trigger incentivizes the user who calls the function. The respective trigger user receives a percentage of the distributed fees. When the trigger is activated, both the fees are replenished and the rewards are distributed.
The rebase mechanism controlled through the RePLENishment Trigger performs burning of LP-token and buybacks. The component affects the token price on decentralized markets because with burning and buybacks, the value of PL2 potentially increases. In this way, supply and demand for services emanating from Lightning Nodes are reflected in the token economy, as the token income generated by Plenny comes mainly from the activity of Lightning Nodes. The applied algorithm attempts to balance inflationary and deflationary effects between the non-financial digital economy related to the LN and the decentralized financial economy influenced by decentralized markets. Essentially, the RePLENishment-Trigger is understood as a decentralized tool for achieving economic equilibrium.
Thresholds for PL2 and LP-token to initiate the rebase mechanism are parameterized and subject to DAO Governance.