Redeem

Redemption is Obelisk’s native mechanism for exiting the protocol through a deflationary, treasury-backed process. Rather than selling $OBLSK on the open market, eligible users can redeem their tokens directly through the protocol in exchange for a proportional share of the treasury’s non-native assets, such as SOL or USDC.

This system ensures that exits do not create sell pressure, do not require liquidity from external markets, and contribute positively to the protocol’s long-term value structure.

Redemption is reserved for long-term participants. Only users who have actively staked $OBLSK for a minimum duration can access the redemption process. This ensures that treasury assets are only distributed to aligned contributors who support protocol growth.

How It Works:

1. User stakes $OBLSK; after 7 days they unlock Redeem Opportunities.

2. After this period, the user becomes eligible to burn their $OBLSK and redeem a share of protocol-owned treasury assets.

3. The redemption rate is based on:

   • The size of the user’s stake

   • The total amount of $OBLSK burned

   • The current value of the treasury

   • Protocol-defined redemption caps per epoch to protect reserves

4. Once executed:

   • The $OBLSK is permanently burned

   • The user receives SOL / USDC / LP tokens directly from the treasury

Benefits for Obelisk

The Redemption mechanism is not just a feature—it is a structural advantage that reinforces Obelisk’s long-term sustainability. It strengthens the protocol in the following ways:

• Deflationary Pressure All redeemed $OBLSK is burned, directly reducing circulating supply and increasing scarcity.

• No Market Sell Pressure Since redemptions are conducted within the protocol, they do not impact secondary market pricing or require sell-side liquidity.

• Treasury-Backed Exits Users exit against real, protocol-owned assets—ensuring value is distributed from growth, not inflation.

• Alignment with Long-Term Behavior Only users who contribute through staking are eligible for redemptions, reinforcing long-term commitment to the system.

Redemption is not an escape. It is an integrated part of the protocol’s closed economy—designed to reward aligned participants while compounding value back into Obelisk through consistent supply reduction.