# Development Phases of $HOPE ## Phase 1 : Bootstrapping Token $HOPE will be initially launched at `$0.50`, and it will be listed on [HopeSwap](/protocols/hopeswap.md) once HOPE Gömböc is in place. The dedicated market makers ensure that $HOPE has sufficient liquidity through the BTC/ETH-backed tracking mechanism. **How does the BTC/ETH-backed tracking mechanism work?**

BTC/ETH-backed tracking mechanism

**Expansion** * When there’s an increased demand for $HOPE in the market, $HOPE will trade at a premium to the tracking price. * Market makers will sell $HOPE at high price in the market and also be incentivized to more minting activities, resulting in an increase in the supply of $HOPE. * The expansion of $HOPE in circulation will bring the tracking price back in place. **Contraction** * When there’s a decreased demand for $HOPE in the market, $HOPE will trade at a discount to the tracking price. * Market makers will buy $HOPE at low price in the market and also be incentivized to more burning activities, resulting in a decrease in the supply of $HOPE. * The contraction of $HOPE in circulation will bring the tracking price back in place. ## Phase 2 : Interim Pricing Token **Self-Correcting Pricing Mechanism** Once $HOPE reaches peg (the Peg Event), HOPE Gömböc will start to include stablecoins. As the Peg Event takes place, dedicated market makers will be able to subscribe and redeem $HOPE 1:1 from the protocol using stablecoins. In situations where the total value of HOPE Gömböc is less than total market cap of $HOPE’s face value, the dedicated market makers will subscribe/redeem $HOPE with a basket of BTC/ETH to bring the market price of $HOPE back to equilibrium, i.e. `$1.00`. This self-correcting market mechanism is similar to the one described in Phase I. **How does the pegging mechanism work?**

Pegging Mechanism

**Expansion** * When there is an increase in demand, $HOPE will be trading at a premium to `$1.00`. * The higher price will then incentivize more minting activities and result in an increase in the supply of $HOPE, which will bring the pricing back to `$1.00`. * Reserve assets - BTC / ETH / USDT(C) – are added to HOPE Gömböc during minting activity, ensuring sufficient intrinsic value backing $HOPE’s dollar peg. **Contraction** * When there is a decrease in demand, $HOPE will be trading at a discount to `$1.00`. * The lower price will then incentivize more burning activities and result in a decrease in the supply of $HOPE, which will bring the pricing back to `$1.00`. * Reserve assets - BTC/ETH/USDT(C) – are removed from HOPE Gömböc * During burning activity, retaining sufficient intrinsic value backing $HOPE’s dollar peg. ## Phase 3 : Eco-Native Stablecoin Subject to the LightDAO’s approval, $HOPE will be officially declared as the ecosystem’s native stablecoin as HOPE Gömböc reaches a certain multiple of the total face value of $HOPE. BTC and ETH in HOPE Gömböc will be gradually converted to distributed, stable-value and liquid assets to avoid impact from coin price fluctuations. Subject to LightDAO’s approval, $HOPE insurance fund (consisting of excess reserves and parts of the DAO’s treasury) will be set up as a war chest to protect the peg and defend $HOPE’s value. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hope.money/hope-token/development-phases-of-hope.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.