KCD Oversupply

KCD Price may temporarily drop below 1 USD in the case of KCD oversupply. In such oversupply situation, below price adjustment mechanism is triggered :

• KCD minters can repay their KCD by purchasing KCD at a price lower than mint price (1 USD)

• Example : When KCD Price is 0.99 USD, KCD Minter of 100 KCD can purchase and repay KCD for 1 USD arbitrage profit (100 - 0.99 x 100 = 1)

In other words, when KCD Price is lower than 1 USD in oversupply situation, KCD Minters can purchase and repay KCD at lower cost, which eventually increases the demand for KCD — maintaining KCD supply and demand balance.