Glossary
Quick definitions of key terms used throughout the documentation.
B
Bond A zero-coupon convertible bond issued by MegaStrategy. You invest capital and receive a Note NFT (principal) and Warrant NFT (option).
Bond Market The primary market where new bonds are sold. Capital raised goes to the BTC Treasury.
Bond Series A discrete fundraising round with fixed, immutable terms. Each series has its own maturity date, strike price, and caps.
BTC Bond A bond where you subscribe with BTC and receive principal repayment in BTC.
BTC Treasury The main treasury holding Bitcoin from bond sales and MSTR Market fees. Benefits bond holders and Note NFT holders. Distinct from DAO Treasury.
D
DAO Treasury Revenue pool belonging to MegaStrategy DAO, funded by Secondary Market trading fees. Distinct from BTC Treasury.
E
Exercise (Warrant) The action of paying USDT at the strike price to receive $MSTR tokens from a Warrant NFT.
Expiry The deadline by which a Warrant must be exercised. After expiry, the Warrant becomes worthless.
F
Face Value The principal amount a Note NFT represents. For BTC bonds, denominated in BTC. For USD bonds, denominated in USD.
I
Insurance Pool The pool of staked USDT that backs all USD bond series. Covers shortfalls when series proceeds can't fully repay Note holders.
L
Lock Duration The period a staker commits to locking their USDT in the Insurance Pool. Options: 3, 6, 12, 18, or 24 months.
M
Maturity The date when a bond series settles. Note holders can claim principal anytime after this date.
MegaStrategy DAO The decentralized autonomous organization that governs the protocol. Receives Secondary Market fees via the DAO Treasury, plus 3% of all $MSTR minted through warrant exercises.
MSTR Market AMM pools where $MSTR trades against BTC and USDT. Protocol provides liquidity using pre-minted $MSTR and BTC from reserves. Trading fees go to BTC Treasury.
$MSTR The protocol token. Used for governance, warrant settlement, and staker compensation.
Multiplier The reward rate increase for longer lock durations. Ranges from 1.0x (3 months) to 2.0x (24 months).
3
3% Minting When warrants are exercised, an additional 3% $MSTR is minted for MegaStrategy DAO on top of the tokens minted for the warrant holder.
N
Note NFT A non-fungible token representing your principal claim. Always tied to a specific bond series. Redeemable for BTC or USDT at maturity.
O
Out of the Money When $MSTR price is below the Warrant strike price. Exercising would cost more than the $MSTR is worth.
P
Pre-minted $MSTR $MSTR tokens reserved at USD bond issuance to compensate Insurance Pool stakers if a shortfall occurs.
Principal The original amount you invested. Represented by your Note NFT.
R
Redemption When Treasury NAV exceeds $MSTR market cap for 5 out of 7 days, a 48-hour redemption window opens. $MSTR holders can redeem tokens for BTC at the treasury rate, up to 5% of treasury per window. Creates a price floor for $MSTR.
S
Secondary Market The market where users trade Note and Warrant NFTs with each other. Trading fees go to DAO Treasury.
Series Proceeds The BTC held by the protocol for a specific bond series. Used to repay Note holders at maturity.
Shortfall When series proceeds (converted to USDT) are less than principal owed to Note holders. The Insurance Pool covers the gap.
Strike Price The price per $MSTR you pay when exercising a Warrant. Set 30-70% above market price at issuance.
T
Tenor The period between bond sale completion and maturity date.
Treasury NAV The total BTC held by the protocol treasury. The core asset backing $MSTR value.
TWAP (Time-Weighted Average Price) A price calculated by averaging over a time window (24 hours). Used for $MSTR valuation in compensation calculations. Resistant to manipulation.
U
USD Bond A bond where you subscribe with USDT and receive principal repayment in USDT. Protected by series proceeds and the Insurance Pool.
W
Warrant NFT A non-fungible token representing the right to receive $MSTR at a set strike price. Can be tied to a bond series or issued as standalone rewards.
Z
Zero-Coupon A bond that pays no periodic interest. All upside comes from the Warrant component, not yield payments.
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