The Mathematics Behind the Virtual Assets

Understanding the Mechanism of Holding Virtual Assets in the Treasury

How Virtual Assets Work in the Treasury The Market Reserves are the part of Beradrome’s system that sets the price of BERO based on how much people want it—no big upfront money required. This keeps BERO’s market price at or above the floor price (1 HONEY), ensuring there’s plenty of tokens to trade (liquidity) and letting the price figure itself out naturally. Beradrome uses a virtual bonding curve for the Market Reserves. This clever trick means they don’t need real cash to start—it creates deep liquidity and keeps price swings low right away, without needing outside help. You can buy or sell BERO at the current market price anytime. The curve sets prices from the floor (1 HONEY) up to infinity, based on a fixed total supply of BERO tokens. The Basics: Virtual HONEY and BERO The system starts with: ● All the BERO tokens (let’s say 100) in the bonding curve. ● A matching amount of “virtual HONEY” (also 100). This isn’t real HONEY—it’s just a number used for math in the equation: (Virtual HONEY) × (BERO) = K (a constant number). For example: ● (100 virtual HONEY) × (100 BERO) = 10,000 (K = 10,000). At the start, all 100 BERO are in the curve, none are out in the world, and the virtual HONEY just sits there unused.

How BERO Gets Out To get BERO into circulation, someone has to buy it from the curve using real HONEY. Let’s say: ● A user adds 25 real HONEY to buy 20 BERO. ● Now the equation shifts: (100 + 25 HONEY) × (100 - 20 BERO) = 10,000. ● Result: The curve has 125 HONEY (100 virtual + 25 real), and 80 BERO left. The user walks away with 20 BERO.

What Happens When BERO Comes Back If all 20 BERO get sold back to the curve: ● The user trades 20 BERO for 25 HONEY. ● The curve goes back to (100 HONEY) × (100 BERO) = 10,000. ● We’re back where we started: all BERO in the curve, no real HONEY needed, just the virtual HONEY for math.

Why This Matters This system shows how the Market Reserves work without needing real money upfront. It also sets the stage for why oBERO (the reward token) is always a good deal—more on that in the “oBERO is In the Money” section