# Treasure Reserve

SDT release in <mark style="color:orange;">**SD Securities**</mark> is closely related to the <mark style="color:red;">**Treasure Reserve**</mark>. Main function of the <mark style="color:red;">**Treasure Reserve**</mark> is to balance the overall supply and demand of SDT, ensuring the proper functioning of <mark style="color:orange;">**SD Securities**</mark>. <mark style="color:red;">**Treasure Reserve**</mark> is interconnected with <mark style="color:orange;">**SD Securities**</mark> through a smart contract, when <mark style="color:orange;">**SD Securities's**</mark> provision is insufficient, <mark style="color:red;">**Treasure Reserve**</mark> comes into play. Simultaneously, when <mark style="color:orange;">**SD Securities**</mark> has excess SDT, it will be stored in the <mark style="color:red;">**Treasure Reserve**</mark> for future provision.

### *Why Insufficient or Excess of SDT in SD Securities?*

During the vesting period of <mark style="color:orange;">**SD Securities**</mark>, SDT bought will either increase or decrease due to the capital based distribution method.

For example,

Scenario of Mr. A buys SDT at SD Securities for $100

<table><thead><tr><th width="204">5 days Vesting Period</th><th>SDT Price </th><th>Daily Capital </th><th>SDT Release </th></tr></thead><tbody><tr><td>Day 1</td><td>$1 </td><td>$20 </td><td>20 </td></tr><tr><td>Day 2</td><td>$0.5 </td><td>$20 </td><td>40 </td></tr><tr><td>Day 3 </td><td>$0.5 </td><td>$20 </td><td>40 </td></tr><tr><td>Day 4</td><td>$0.2 </td><td>$20 </td><td>100 </td></tr><tr><td>Day 5 </td><td>$0.2 </td><td>$20 </td><td>100 </td></tr><tr><td>Total </td><td></td><td>$20 </td><td>300 </td></tr></tbody></table>

Mr.A is supposed to receive only 100 SDT tokens at $1 price.

In this scenario, Mr.A received 300 SDT tokens in total. Therefore, the <mark style="color:red;">**Treasure Reserve**</mark> will have a deficit of 200 **SDT**.

Scenario of Mr. B buys SDT at <mark style="color:orange;">**SD Securities**</mark> for $100

<table><thead><tr><th width="219">5-days Vesting Period </th><th>SDT Price </th><th>Daily Capital </th><th>SDT release </th></tr></thead><tbody><tr><td>Day 1</td><td>$1 </td><td>$20</td><td>20</td></tr><tr><td>Day 2 </td><td>$2 </td><td>$20 </td><td>10</td></tr><tr><td>Day 3</td><td>$4</td><td>$20 </td><td>5</td></tr><tr><td>Day 4</td><td>$5</td><td>$20</td><td>2</td></tr><tr><td>Day 5</td><td>$10 </td><td>$20 </td><td>2</td></tr><tr><td>Total </td><td></td><td>$100 </td><td>41</td></tr></tbody></table>

In this scenario, Mr.B received 41 SDT in total. Therefore, the <mark style="color:red;">**Treasure Reserve**</mark> will have an additional 59 SDT.

### *Why does Capital-Based Vesting come into play?*

This is to prevent SDT holders from being affected by short-term price fluctuation, securing the capital of SDT buyers during the vesting period. Secondly, it’s also an anti-pump and dump mechanism to avoid price manipulation by whales. Investors and traders can now vest **SDT** without the hassle of price fluctuations.