Duce Economic Model
Mathematical Framework
The Duce protocol operates under a closed economic model where:
Total Funds Available = Accruel yield + Reserve + Sum of Deposits.
Each investor is guaranteed a return calculated as;
Return = Deposit × 1.20 (20% minimum instance possible).
Role of Reserved Capital
The reserve serves to bootstrap liquidity and mitigate risk, providing the necessary capital cushion for sufficient and smooth operation.
Bull Market: High yield generates surplus beyond the guaranteed 1.2× return.
Bear Market: Yield may temporarily fall short; the dynamic adjustment mechanism ensures investor principal is preserved while bonus payouts are proportionally adjusted.
Autonomous Distribution Flow
A flowchart depicts the FHE-driven process for:
Accumulating investor deposits.
Executing the blind investment strategy.
Computing yield via encrypted algorithms.
Distributing the computed yield to achieve a 1.2× return per investor.
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