Game Theory of NOT Redeeming/ Invalidating $FT Put!
@flyingtulip_ gives every raise participant a perpetual PUT. You can always redeem your Flying Tulip tokens for the exact asset you pledged.
There are two very different outcomes depending on what you do next 👇
Path 1- Redeem (use the PUT)
FT goes back to the protocol → FT is burned → you get back the exact asset you pledged.
✅Float shrinks.
Path 2- Invalidate the PUT
You pull FT out to sell or use elsewhere → PUT is lost → protocol keeps your pledged capital → that capital is used to buy back FT from the market & burn it.
✅Float shrinks
Either way, supply goes down.
If you participated in the raise you know:
✅ Floor = protected if you hold FT in NFT.
❌ Selling/ Redeeming gives protocol ammo to burn directly or buyback and burn.
Weak hands dump, early profit takers redeem in both cases $FT float gets smaller.
Long term holders keep the safety net and upside.
Meanwhile the $1B treasury can earn ~$44M/yr (at 4–5% low-risk yield).
Add trading, lending, perps fees all used to buy FT & burn.
So the float is constantly shrinking from both user exits and protocol revenue.
This flips DeFi's usual script:
No team pre-mine, no emission treadmill, no VC dumping.
FT starts with 100% investor owned float and gets eaten over time.
Game theory is simple:
If you believe adoption will come, holding FT from the raise is a no-brainer (you keep upside and downside protection).
Selling or redeeming makes the float thinner and makes remaining holders stronger.
Flying Tulip's Perpetual PUT is a supply discipline mechanism that forces rational holders to stay long while punishing weak exits by shrinking float.
Team would always want investors to invalidate PUT (which means FT price is going up), instead of redeeming.
More to come on this! 🌷
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