NODE
STRATEGY

Technical Documentation

Custody & Security

NodeMonke Holdings

To begin with, 4 founding team members will hold the nodes in 4 separate Ledger hardware wallets, with 1 Ledger managed by each team member. Buy and sell tiers are manually set by the team.

We are actively working with lifo to be the first users of his multisig product that will allow native sweeping and listing on Satflow. This will remove elements of trust and increase security.

Our Commitment: Whenever we can remove elements of trust, we will do it. We continuously work to improve our infrastructure and reduce trust assumptions.

Bitcoin Treasury

All BTC raised from the auction and ongoing operations remains in a multisig wallet controlled by the founding team. This ensures no single person can move treasury funds.

Liquidity Pool Management

The liquidity pool (LP) on RadFi is split among 4 team members. Each member manages their portion of the LP independently. We are working toward more decentralized solutions as the infrastructure matures.

Buyback Operations

How Buybacks Work

Buybacks are currently a manual process executed by the team. We will regularly execute market operations to claim fees when enough have accrued and then use them to buy more nodemonkes, and also use BTC sold from listed nodemonkes to buy back and burn the token. The timing for this will be non-standard but will occur regularly to prevent frontrunning.

Holder Defense Fund

These funds will be used when the fair market value for the NODESTRATEGY token is so low that buying back and burning significantly increases MNAV. It's fundamentally for countering if / when the flywheel stops or significantly slows down.

RadFi LP Revenue

The 9% trading fee revenue from RadFi liquidity provision flows back to the treasury and is allocated as follows:

  • 80% - Buy NodeMonkes
  • 15-20% - Buy & Burn tokens
  • 0-5% - Liquidity pool (depending on market conditions)
  • 0% - Team

This creates a flywheel effect where trading activity generates revenue that strengthens the treasury and supports token value.

Treasury Strategy

NodeMonke Acquisition Tiers

The team manually sets buy and sell price tiers for NodeMonkes based on market conditions and treasury goals:

  • SHORT Tier: Listed 10-50% above floor, quick-flip targets
  • MID Tier: Listed 50-400% above floor, medium-term holds
  • LONG Tier: Listed 400%+ above floor, long-term appreciation plays

These tiers allow the treasury to capture upside while maintaining a core permanent collection.

Revenue Streams

The protocol generates BTC revenue from multiple sources:

  • NodeMonke sales when listed nodes sell above acquisition cost
  • LP trading fees (9% on RadFi)

All revenue flows back to strengthen the treasury, acquire more nodes, and execute buybacks.

Ongoing Development

Trust Minimization

We are committed to progressively decentralizing and removing trust assumptions wherever possible. Current initiatives include:

  • Utilizing native multisig buy, sell, and transfer for NodeStrategy Ordinals listing strategies when the product is ready for production usage.
  • On-chain transparency for all treasury operations
  • Automated buyback systems (future)

Infrastructure Evolution

As the Bitcoin L1 ecosystem matures, we will continuously upgrade our infrastructure to leverage new capabilities and reduce operational trust requirements.

Dutch Auction & Tokenomics

Auction Mechanism

The Dutch Auction for NODESTRATEGY has concluded successfully. The auction followed a batch-clearing mechanism where the price started high and gradually decreased until all tokens were sold.

All participants received their tokens at a uniform clearing price, ensuring fair and equal treatment for all bidders. All participants who confirmed their bids before and including the final block received their allocation at the final clearing price.

This auction model ensures fairness - everyone pays the same final price regardless of when they entered during the auction period.

Token Distribution

Total Supply: 1 billion tokens distributed as follows:

  • 65% - Sold in Dutch Auction (650 million tokens)
  • 11% - Liquidity Pool paired with BTC at auction clearing price (110 million tokens)
  • 10% - Community Incentives (100 million tokens)
  • 14% - Team Supply with 6-month cliff (140 million tokens)

The 6-month cliff on team tokens prevents early dumping and aligns team incentives with long-term project success. Team must build and deliver before receiving any tokens.

Auction Proceeds Allocation

All BTC raised from the auction was allocated as follows:

  • 17% - Paired with 11% token supply for initial Liquidity Pool on RadFi
  • 65% - Market buy NodeMonkes for treasury ladder system
  • 7% - Community Defense Bag to defend token price and support holders
  • 11% - Operations (developers, auditors, servers, app updates, infrastructure)