TerraM token
TerraM Token Buyback and Liquidity Policy for 2025–2026
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The TerraM token derives its value from the earnings generated by the Terramatris Fund. As the fund grows, a portion of that growth is systematically directed toward strengthening token liquidity. This structure is designed to provide existing token holders with improved price stability and reduced transaction slippage.
Liquidity Management Plan
Liquidity is central to the long-term functioning of TerraM. Our structured plan includes:
- Allocation Rule: For every $1,000 in net fund growth, $200 areadded to the Raydium liquidity pool through the TerraM:USDC pair.
- Objective: Increase the pool share from the current 4.10% of tokens to 6–7% over the next growth cycle.
- Expected Impact: By expanding liquidity, we aim to reduce slippage for token holders and support a more orderly secondary market.
Buyback Policy
We are preparing a measured buyback program:
- Trigger: Buybacks will commence once at least 5% of total TerraM tokens are held in the Raydium pool.
- Price Context: As of this update, TerraM tokens trade at $3.26.
- Fund Threshold: Based on current modeling, this 5% liquidity threshold is expected once the fund’s value reaches $12,000.
- Mechanics: Buybacks will be executed directly in the market, with the primary intent of improving liquidity depth and price efficiency.
OTC Sales Policy
At present, no over-the-counter (OTC) token sales are anticipated.
- Waiting List: Any third-party interest in OTC acquisition will be placed on a list for future consideration.
- Reassessment Point: OTC discussions may resume once the fund’s value exceeds $15,000.
- Until that point, token access will remain limited to the decentralized exchange (DEX) environment.
Roadmap Toward $15,000 Fund Value
Our operational focus is directed at scaling the Terramatris Fund to $15,000 in assets under management (AUM).
- Milestone 1 – $12,000 (Expected Q4 2025)
- Initiate token buybacks upon reaching 5% pool liquidity.
- Continue 20% liquidity reinvestment policy on incremental growth.
- Milestone 2 – $13,500 (Expected early Q1 2026)
- Expand liquidity pool share toward 6–7%.
- Strengthen reserve allocations to ensure sustainable reinvestment.
- Milestone 3 – $15,000 (Target by end of Q1 2026)
- Review OTC sales framework and evaluate controlled re-entry of new investors.
- Formalize long-term liquidity strategy based on fund growth and trading volumes.
This update contains forward-looking statements regarding anticipated fund growth, liquidity management, and token policies. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual outcomes to differ materially. There is no guarantee that projected milestones will be achieved within the anticipated timeframe.
How to value TerraM token in 2024?
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Valuing the TerraM token in 2024 involves analyzing its underlying assets, performance metrics, and strategic initiatives. TerraM is the native token of the TerraMatris crypto hedge fund, with a total supply of 10,000 tokens.
Each token represents a 1/10,000th share in the fund, providing investors exposure to a diversified range of assets and strategies.
As of November 2024, the TerraMatris fund has demonstrated significant growth, achieving a year-to-date increase of over 930%. This impressive performance is primarily driven by focused options trading strategies on major cryptocurrencies such as Bitcoin and Ethereum.
The value of TerraM tokens has shown steady appreciation, starting at $1.08 in early 2024 and reaching approximately $1.66 in November. The fund aims to close the year near $2 per token, setting TerraM’s overall valuation around $20,000.
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Looking ahead to 2025, a target of $4-5 per token is considered achievable, with potential for higher valuations over the longer term as the fund continues to expand and evolve its DeFi strategy.
Liquidity and Buyback Strategies
To enhance the value of TerraM tokens, TerraMatris has implemented strategic liquidity provisioning and buyback initiatives. A portion of the fund's assets is allocated to provide liquidity, facilitating smoother trading and increasing the token's availability. Additionally, regular buybacks are conducted to reduce the number of available tokens, thereby elevating the price of TerraM and providing existing holders with potential appreciation. For instance, with the current price of $1.66 per token, the fund is on track to break $2 per token before the end of 2024 and is ambitiously aiming for $4 per token in 2025.
Investment Strategy and Asset Growth
The TerraMatris fund employs a dual approach to revenue generation, focusing on options trading on leading cryptocurrencies and strategic buybacks. By trading short-term, low-risk options with a Delta under -0.1 the fund ensures consistent gains while maintaining robust risk management practices. Coupled with trigger-based hedging strategies, which allow the fund to go short on BTC and ETH during downturns, TerraMatris remains agile in both bull and bear markets. This strategy not only enhances capital gains over time but also sets TerraM apart as a token with a clear upward trajectory.
Market Position and Future Outlook
The TerraM token offers a compelling passive income opportunity and growth potential within a trusted, strategically managed crypto hedge fund. With clear entry points through decentralized exchanges and wallet integrations, it provides easy access for investors.
The fund's commitment to regular buybacks, strategic asset growth, and a diversified investment approach positions TerraM as a promising asset in the evolving DeFi landscape. As the fund continues to implement its strategies and expand its asset base, the value of TerraM tokens is expected to appreciate, offering investors potential for both passive income and capital growth.
A metric we like to consider when evaluating future growth perspectives for the TerraM token is the implied market cap projection based on current Raydium liquidity pool listings.
As of now, with 455 TerraM tokens listed on Raydium (4.55% of the total supply) and fully backed by USDC, the current market price sits at $1.66 per token. However, using the formula 10,000/455 this 4.55% token representation implies a valuation multiplier of approximately 21.97. This calculation suggests that if the entire token supply were available and traded at a similar demand level, the projected token price could reach $36.47.
While we anticipate that achieving this fully listed valuation may take a few years, this projection serves as an insightful indicator of TerraM’s potential. The gradual increase in listings, coupled with strategic buybacks and continued fund growth, supports a trajectory where TerraM’s token price can approach this long-term target. By monitoring these metrics and the broader fund performance, we can continue refining our outlook for the TerraM token.
Investing today at the current market price of $1.66 sets up an exciting potential for 21.97x growth as the TerraM token gradually reaches full listing on the market.
Right now, we're offering up to 2% of the TerraM token supply OTC at this price, meaning a $332 investment could secure a 2% share of the total token supply.
Applying the projected 21.97x growth, this investment could potentially yield a return of $7,294 over the next few years. This makes TerraM an attractive opportunity for early adopters seeking a promising entry point into the fund’s growth trajectory, especially given its strong strategic backing and the increasing demand within the DeFi landscape.
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