Liquidity

The DAO will establish initial liquidity for the DGEN token through a DAO-approved liquidity deployment designed to bootstrap market access, enable transparent price discovery, and support early ecosystem participation under clearly defined constraints.

Initial liquidity is structured to combine a DAO-provided DGEN allocation with external participant demand in a non-recurring, capped, and governance approved deployment. No additional liquidity deployments are planned or implied by this section.

This liquidity framework forms part of the DGEN DAO Whitepaper and is subject to approval through the initial DGEN governance ratification vote.

Initial Liquidity Authorization

Following the Initial Airdrop, the DAO will create and deploy liquidity for the DGEN/USDC pair on Base via a single pool on Aerodrome.

The authorization consists of 15,000,000 DGEN, deployed as follows:

• 5,000,000 DGEN paired at an initial reference price of approximately 0.002 USDC per DGEN.

• 5,000,000 DGEN deployed as concentrated liquidity within a capped price range of approximately $0.002 to $0.005 USDC per DGEN, enabling price discovery.

• 5,000,000 DGEN deployed as basic liquidity with an approximate start price at 0.002 USDC per DGEN that scales infinitely.

This structure supports organic market formation by allowing USDC counter-liquidity to accumulate through open-market activity, without requiring direct DAO deployment of USDC. It is designed to enable community participants to contribute USDC into the liquidity pool through market participation, seeding durable counter-liquidity alongside DAO-provided DGEN.

Liquidity Constraints and Governance Protections

• The DAO will not deploy additional liquidity beyond this authorization without a separate governance vote.

• The DAO will not actively rebalance, trade against, or manage price action within the liquidity pool.

• Liquidity positions are intended to remain passive and transparent.

• Any withdrawal, redeployment, or restructuring of DAO-provided liquidity requires governance approval.

• Liquidity fees generated by DAO-provided positions are treated as DAO assets and may be retained, deployed, or otherwise allocated subject to governance.

Aerodrome Liquidity Rewards

Aerodrome utilizes a vote-based incentive framework in which third-party token holders may direct liquidity incentives toward specific liquidity pools by staking AERO. Participation in such frameworks is optional and does not require additional DGEN issuance or treasury deployment.

The DAO does not authorize, guarantee, or manage liquidity incentives at launch. Any future participation by the DAO in incentive mechanisms is subject to separate governance approval.