Summary

To stabilize market expectations and strengthen community confidence, this proposal launches the "5U Price Protection Mechanism":

Over the next three months, ARK will mobilize available resources (including the Treasury) to defend the token price, holding 5U as the price floor. When the market touches this floor, MBR will automatically trigger buyback, providing price support.

📌 Positioning: The purpose of the 5U three-month protection mechanism is not to drive prices up quickly, but to hold the 5U floor — reducing market volatility, strengthening confidence, and buying time for ecosystem development.

To keep the mechanism sustainable, a MBR ↔ Treasury Dynamic Replenishment System will be established in parallel, forming a healthy circulation between market support funds and Treasury reserves.

Purpose

1. Stabilize expectations — Establish a clear price floor as a confidence anchor;
2. Hold the 5U floor — Reduce downside volatility and buy time for ecosystem development;
3. Sustain buyback capacity — Ensure MBR always has sufficient support funds;
4. Balance capital dynamically — Build automatic circulation between market support and Treasury reserves;
5. Reactivate idle capital — Return surplus funds to the Treasury to serve ecosystem building and long-term development.

Implementation Details

1. 5U Price Protection Mechanism

• Duration: Three months upon proposal approval
• Price Floor: 5U
• Positioning: "Stability" as the core objective — hold the 5U floor, not chase rapid price gains
• Trigger: When the market price approaches 5U, MBR triggers buyback to provide price support
• Executor: MBR (Market Balance Reserve), supported by Treasury resources when needed

2. MBR Dynamic Fund Replenishment

During the three-month cycle, the MBR pool operates as follows:

• Minimum Level: MBR maintains a minimum of $3M
• Treasury Injection: When MBR falls below $3M, the Treasury will auto-replenish it back to $5M, ensuring buyback capacity stays online.
• Treasury Return: When MBR USDT holdings exceed $7M, $2M will be automatically returned to the Treasury.

📌 Core Principle: MBR and the Treasury form a "low-level replenishment × high-level return" dynamic balance — securing support capacity while keeping idle capital in service of the ecosystem.

Execution Schedule

• Upon approval, the 5U Price Protection Mechanism takes effect immediately, with an initial three-month cycle;
• The MBR ↔ Treasury Dynamic Replenishment System activates simultaneously;
• All fund transfers and replenishments follow the Treasury multi-sig process, executed on-chain and fully auditable;
• Treasury and MBR fund flows will be reported to the community on a regular basis.