CAPY represents the current offered Annual Percentage Yield (APY) per held token. Each token receives an equal share of the DAO portfolio’s free cashflows.
There is a symbiotic relationship between several elements in the DAO and the
Based on a variety of factors (explored below), CAPY can vary from month to month as differently profitable businesses are acquired, but it will also maintain a peg based on the dividend yield set by the acquired product to meet the peg.
On a day to day basis, the paper CAPY can slowly slide down as new tokens are emitted and total supply grows. However, it shoots back up with every new acquisition by the end of the month.
This effect doesn’t affect
Thus, another important element of maintaining the
The treasury will have plenty of leftover to pay yield while acquisitions close but the
The goal of the