TerraM token was launched with a simple structure: 10,000 tokens in existence and a disciplined, performance-driven capital strategy. Today, with the token trading at 1.85 USDC, the fully diluted valuation (FDV) stands at 18,500 USDC
That is far below the level we believe reflects the underlying fund structure and ongoing weekly buybacks.
This article outlines the next phase: how we intend to move toward a 100,000 USDC FDV, and under what conditions additional TerraM tokens will be minted.
There are several ways to reach a 100,000 USDC fully diluted valuation. One approach would be purely price-driven: keeping the supply at 10,000 tokens and allowing TerraM to appreciate toward 10 USDC per token.
That is structurally possible over the longer term and would rely on strict capital discipline, consistent performance, and continued weekly buybacks funded from premium income. It would mean compounding from the existing base without expanding supply.
However, we have chosen a different route for now - expanding supply by minting additional tokens. Increasing the number of tokens in existence does not fundamentally change the economics of the fund, but it provides greater flexibility, improves market structure, and allows us to scale liquidity more efficiently while maintaining strategic control.
Current Situation (February 17, 2026)
- Token price: 1.85 USDC
- Tokens in existence: 10,000
- Current FDV: 18,500 USDC
- Raydium liquidity backing: ~538 USDC
Liquidity is objectively thin. The pool cannot support meaningful trading, and price discovery is fragile. Expanding supply under these conditions would be premature.
At the current market price (1.85 USDC), a 100,000 USDC FDV implies: 54,054 total tokens
With 10,000 already in circulation, this would require minting approximately: ~44,000 additional TerraM tokens
However, price assumptions matter.
If TerraM trades sustainably above 2 USDC, then: 100,000 ÷ 2.00 = 50,000 total tokens
In that case, fewer tokens would need to be minted.
Given ongoing weekly buybacks, we believe the current fair value should already be above 2 USDC. Market structure, not fundamentals, is currently the limiting factor.
We will not mint additional tokens immediately. Condition for minting:
- Minimum 1,000 USDC liquidity in the Raydium pool
Because expanding supply into a shallow pool dilutes price stability and damages long-term credibility. Liquidity depth must precede supply expansion. The immediate priority is:
- Grow Raydium pool liquidity
- Concentrate trading activity exclusively on Raydium
- Strengthen organic price discovery
Only once liquidity reaches a healthier level will additional TerraM tokens be minted.
Estimated timeframe to reach sufficient liquidity: ~10 weeks (end of April / May). This assumes:
- Continued weekly buybacks
- Gradual liquidity growth
- No aggressive external fundraising
Minting additional TerraM tokens is not a fundraising event. The objective is:
- Increase float
- Improve trading efficiency
- Strengthen pool depth
- Enable healthier market structure
Raising outside capital is not the primary goal. The goal is to make TerraM trade properly on-chain, with all activity concentrated in the Raydium pool.
Phase 1 (Current):
Stabilize price, grow liquidity, continue buybacks.
Phase 2 (Liquidity ≥ 1,000 USDC):
Mint ~44,000 additional TerraM tokens (or fewer if price exceeds 2 USDC).
Phase 3 (Post-expansion):
Deepen Raydium liquidity and encourage exclusive on-chain trading.
We are not rushing expansion. We are aligning supply growth with liquidity depth. A 100,000 USDC FDV is achievable, but it must be structurally supported not artificially inflated.
