Summary

To further strengthen ARK’s market stability and adaptive capacity, and to enhance the reserve-support function beyond RBS, this proposal suggests upgrading the Market Balance Reserve (MBR) structure.

Under MBR 2.0, ETH burnback funds will be used to build a reserve pool denominated in USDT, with a dynamic total value cap of $5 million (combined ARK + USDT value).

Once the total reserve value exceeds $5 million, the mechanism will automatically transition into a buyback-and-burn phase.

This upgrade transforms MBR from a basic balancing reserve into a structured stabilization module featuring

phased adjustment × capped reserves × value recapture dynamics.

Purpose

1. Improve the strategic utilization of ETH burnback funds.
2. Establish a scalable reserve buffer to enhance protocol resilience.
3. Form a three-layer structure:Automated Maintenance (RBS) × Reserve Assistance (MBR) × Cap-Based Value Recapture.
4. Reinforce deflationary dynamics when reserve accumulation exceeds the defined threshold.

Implementation Details

Funding Source

• ETH burnback proceeds

Dynamic Scale

• Target reserve capacity: up to $5 million total value

Asset Composition

• USDT stablecoin and ARK

Core Mechanism Upgrade (MBR 2.0 Rules)

• Bidirectional Adjustment Function：MBR is not limited to buyback-and-burn actions.

When necessary, it may conduct both buy and sell operations to regulate market liquidity and maintain orderly conditions.

• Dynamic Reserve Cap: $5 Million

The combined total value of ARK + USDT held within MBR shall not exceed $5 million.

If total value surpasses $5 million:

👉 The excess portion will be deployed for ARK buyback and burn,

converting accumulated reserves into deflationary pressure.

• Lower-Bound Replenishment Rule

If reserve levels fall below the defined baseline range,

future ETH burnback proceeds will be allocated to replenish the reserve.

• Trigger Conditions

• No fixed schedule

• Activated only when market conditions require or thresholds are reached

• All operations will be fully on-chain, transparent, and verifiable

Implementation Schedule

• Upon activation, MBR 2.0 will enter continuous dynamic monitoring and adjustment mode.

• Execution addresses and all transaction records will be publicly disclosed via official announcements to ensure full transparency and verifiability.