💰 PLS Reserve & Collateral Strategy Phase 1(80% of the Marketing Budget)
The largest portion of the marketing allocation — 80% of the marketing budget — is dedicated to building and maintaining our PLS Reserve, a foundational part of our long-term growth and sustainability strategy.
This reserve is accumulated throughout Phase 1 until the community reaches 4,000 Platinum Burner members, marking the end of Stage 5 and the beginning of Phase 2. At that milestone, we expect to have built a strong PLS position capable of maintaining a 500% collateral ratio within the Liquid Loans protocol.
From there, we begin executing the next phase of the plan:
- ✅ Mint as much USDL as possible while maintaining that 500% collateral ratio.
- ✅ Use the first $5,000 USDL to pair with 500,000 SCT and create the initial liquidity pool (LP).
- ✅ Any additional USDL minted beyond that point is used to collateralize loans in the EARN, FLEX, and INC Printer protocols.
Each of these protocols uses its own native core token as collateral, which means the tokens we acquire and deposit are removed from circulating supply and can no longer be sold back into the liquidity pool. This has a powerful effect on market dynamics:
- 💡 Locked tokens cannot be sold, reducing potential sell pressure.
- 💡 They remain available for future use if needed to deepen liquidity, but otherwise stay locked.
- 💡 As supply tightens, scarcity increases — and as holders take profits and prices decline, our revenue-based buying strategy allows us to accumulate even more tokens at lower prices and continue locking them away.
This process is repeated every month, always maintaining a 500% collateral ratio and increasing collateral targets by 10% to strengthen protocol positions. All minted decentralized stablecoins generated through this system are then used to purchase tokens for Rewards Pool airdrops — creating a self-sustaining cycle of growth, accumulation, and reward generation.
While this strategy does not guarantee an increase in the value of any locked asset, the principle is simple: as more supply is locked away and removed from circulation, scarcity grows. Over time, fewer tokens are required to mint stablecoins, and collateral ratios naturally increase if new stablecoins are not minted.
And as we continue to buy and lock tokens — and as members choose to follow this same strategy on their own — the ecosystem becomes stronger, deeper, and more resilient with each passing cycle. This process will continue for as long as revenue flows into the ecosystem, ensuring ongoing growth and rewards for active participants.
📊 Collateral Buffer Advantage – Turning Volatility Into Opportunity
One of the most powerful aspects of this strategy is what happens after we achieve strong collateral positions. As our collateral ratios grow beyond the baseline 500%, they create a protective buffer — a built-in safety margin that lets us move strategically when market conditions change.
When token prices experience significant dips, that buffer gives us the ability to buy core tokens at a discount while still keeping our collateral ratios well above a safe minimum — often 200% or higher. These newly minted stablecoins are then used to purchase even larger quantities of core tokens during downturns, which are immediately locked as collateral to rebuild or even increase our collateral ratios over time.
This approach flips market volatility from a risk into an opportunity. Instead of reacting to falling prices, Shiburnit Club can capitalize on them — steadily accumulating more tokens, strengthening protocol positions, and further reducing circulating supply when prices are most favorable.