# Premium Issuance

**Only when HOLI's premium to NAV is above 45%** does the protocol mint to stakers at **69% of market**, proceeds **into the Treasury**. **Below 45%, issuance stops.**

After Genesis, HOLI's observable market price is <Md expr="P_m" /> and current NAV is <Md expr="n_t" />. The premium is

<Eq expr="\pi_t = \frac{P_m}{n_t} - 1" />

<Md expr="P_m" /> is the observable price of the **HOLI/USDG** pool. <Md expr="n_t" /> is current NAV — the same print as <Md expr="n_t = A_t / N_t" />.

Premium issuance is the **discount purchase right**: the standing mint to addresses that meet the [staking rules](/staking/rights). USDG proceeds go into Treasury **undeployed reserves**. External supply increases.

## Quiet period, then a <Md expr="w" /> vote

**First 7 days after open: no inflation.** [Quiet period](/launch/quiet-period).

After that, staking effective weight <Md expr="w" /> votes:

* **whether** inflation is on
* **per-period size**
* **interval**

## Gate

Even if that proposal passes, the protocol opens issuance to staking-rule-eligible addresses **only when**

<Eq expr="\pi_t > 45\%" />

That is <Md expr="P_m > 1.45\, n_t" />. **Below 45%, issuance stops**, so the house does not inflate supply near NAV or at a discount to NAV. Who may mint when the gate is open is [age-eligible](/staking/eligibility) staking weight.

## Issue price

The issue price is **69% of market**:

<Eq expr="P_e = 0.69\, P_m" />

Participants get a **31%** discount to the HOLI/USDG **market** price. Above the gate the protocol **mints** at **not below NAV**. That is the issue price, not a redeem-at-NAV floor. When premium qualifies **and** the address has paid <Md expr="\Delta N_i \cdot P_e" /> **in USDG**, it mints <Md expr="\Delta N_i" /> HOLI. That USDG enters Treasury **undeployed reserves** and therefore <Md expr="A" />, in full. New HOLI is immediately transferable, sellable, and re-stakeable. When undeployed assets are **above 30%**, <Md expr="w" /> votes to allocate idle funds into **already-approved** external-asset/HOLI pools. [POL Deployment](/treasury-mgmt/deployment).

## Why this does not dilute NAV

These parameters meet NAV at the gate:

<Eq expr="0.69 \times 1.45\, n_t = 1.0005\, n_t \approx n_t" />

So when premium is about **45%**, <Md expr="P_e \approx n_t" />. Richer premium, <Md expr="P_e > n_t" />.

If the mint is <Md expr="\Delta N" /> and proceeds <Md expr="P_e\Delta N" /> fully enter the Treasury, ignoring fees:

<Eq expr="n_{t+1} = \frac{A_t + P_e \Delta N}{N_t + \Delta N}" />

The gate guarantees <Md expr="P_e \gtrsim n_t" />, so the mint is mathematically non-dilutive per token NAV. Well above 45%, it thickens NAV.

If market premium falls back to **45% or below**, or proceeds do not fully enter the Treasury, pause issuance. Credits already on wallets but not yet paid and minted **expire** — they cannot mint more HOLI.

This mint waits out the [quiet period](/launch/quiet-period). This period's inflation mint is <Md expr="\Delta N" />. The protocol credits that allocation onto wallets by effective-weight share; the wallet pays <Md expr="\Delta N_i \cdot P_e" /> in USDG to mint. The split is [premium allocation](/staking/allocation). The SHYT [green channel](/launch/green-channel) is a parallel path: it fills at the SHYT/HOLI pool price, paid in **SHYT**. This printer collects **USDG** at 69% of HOLI/USDG.