Flood

This is a concise specification of the Flood. For a deep dive into the Flood's design and mechanics, see The Flood: Biblical Returns to prevent Pump and Dumps.

The Pinto protocol sells newly minted Pinto on the open market during long run increases in demand for Pinto when increasing the Pinto supply, lowering the Maximum Temperature and lowering the Crop Ratio have not crossed the Pinto price over its value target.

At the beginning of a Season where TWA∆P > 0 and Pod Rate < 3% (Excessively Low), it is Raining. At the beginning of a Season in which it Rains, the Crop Ratio is set to 33.33%. If at the beginning of a Season it continues to Rain and the cumulative ∆P > 0, it Floods.

At the beginning of a Season during a Flood, the protocol mints additional Pinto and sells them directly in pools on the Flood Whitelist with the highest Pinto price at the end of the previous Season until the liquidity weighted price is $1.

At the beginning of each Season in which it Floods, up to 0.1% of the Pinto supply worth of Pods that grew from Pinto Sown before it began to Rain become Harvestable.

In total, during a gm call in which it Floods, the following Pinto are minted:

Cumulative ∆P at the end of the previous Season, which are minted and sold directly in pools on the Flood Whitelist;
Up to 0.1% of the Pinto supply worth of Pods;
TWA∆P per the target maintenance mechanism (as with non-Flood gm calls); and
The gm reward (as with non-Flood gm calls).

Proceeds from the sale are distributed to Stalkholders at the beginning of Season in proportion to their Stalk holdings when it began to Rain (i.e., Stalk minted after it began to Rain does not contribute towards ownership of the Flood proceeds).