True Freeze is a fully decentralized proof of patience protocol. Users lock ETH for between 1 and 1,100 days. Doing so mints
- a certificate of Deposit NFT that represents the position and
- freezer-ETH (frETH) that represent their tokenized patience.
It is designed to be a 0-human in the loop primitive that works autonomously forever. The NFTs can be traded like zero coupon bonds on any NFT marketplace.
The frETH tokens are bought and sold because the withdraw *early* requires a small ETH (0.25%) and variable frETH fee. Withdrawing (i.e., redeeming an NFT) very early (in the first 2/3rds of the lock time) requires MORE frETH than originally minted by that NFT. This fee revenue goes to stakers of the FRZ token. The FRZ token inflates over time autonomously. This new FRZ is split among users who “burn” frETH. This creates an autonomous flywheel that absorbs the volatility of ETH (people redeem NFTs to sell ETH high and rebuy low) into the frETH and FRZ token values. The supply of frETH will be the amount minted minus the amount burned in redemptions or for the FRZ emissions.
