Key Mechanisms

Dynamic Supply Mechanism (DSM)

When CSM price > 1 USDT: The protocol automatically mints and distributes new CSM to stabilize downward.

When CSM price < 1 USDT: The protocol automatically buys back and burns CSM to stabilize upward.

Through this expansion and contraction cycle, CSM dynamically maintains price stability around the 1 USDT target.

---

Decentralized Governance Framework

• veCSM Staking: Governance token holders (veCSM) participate in key protocol decisions such as adjusting transaction fees, modifying burn strategies, and managing reserve allocations.

• Elastic Supply + Deflationary Model: CSM’s long-term value is protected through supply flexibility and deflation mechanisms.

• DAO Governance Structure: All major upgrades and parameter adjustments are decided by veCSM holders through a decentralized voting process.

This governance framework ensures CosmBank evolves sustainably, balancing price stability, ecosystem sustainability, and true community autonomy.