🛒Accumulation & Execution Engine

The Accumulation & Execution Engine is the operational core of ERC-1001. It transforms passive royalty flows into active market liquidity, automatically executing floor buys, relists, and profit conversions.

This mechanism ensures that the system remains constantly in motion — accumulating during inactivity, acting during opportunity.

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⚙️ 1. How the Accumulation Pool Works

Every time a linked collection NFT is traded:

• 8 % of the transaction’s value (royalty fee) flows into the Accumulation Pool.

• These funds remain stored on-chain until a configurable threshold is reached.

• Once that threshold is met, the pool activates the Execution Engine to deploy liquidity strategically.

The pool never holds idle capital indefinitely. It is a dynamic reserve, pulsing in sync with market volume.

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⏱️ 2. Execution Timeline

Figure 3.3 — Accumulation & Execution Flow Liquidity enters the pool, activates once critical mass is reached, executes buys, relists for modest profit, and reinjects proceeds into the burn cycle.

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🔍 3. Threshold Logic

The trigger threshold prevents gas-wasting micro-buys and stabilizes execution cadence.

Parameter	Description	Example
minPoolBalance	Minimum ETH required to initiate buys	0.5 ETH
batchSize	Number of NFTs to purchase per cycle	1 – 3 items
cooldownPeriod	Minimum delay between executions	4 – 6 hours
relistMultiplier	Price markup on relisted NFTs	×1.2 (default)

These parameters can be updated only through governance or protocol upgrades, never by individuals.

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🧮 4. Profit Cycle

When relisted NFTs sell:

1. The Engine receives the sale proceeds.

2. Deducts marketplace fees (≈ 2.5 %).

3. Calculates net profit = sale − buy − fees.

4. Sends profit to the Burn Flow, while optionally refueling the pool.

Example:
Buy = 0.50 ETH
Relist = 0.60 ETH
Fee (2.5 %) = 0.015 ETH
Net = 0.585 ETH → Profit = 0.085 ETH
→ 0.085 ETH → Burn Flow

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🤖 5. Automation & Transparency

• Execution Oracles: optional off-chain executors call public functions when thresholds are met.

• On-Chain Verification: every buy, relist, and sale emits ExecutionEvent.

• Fail-Safe: if marketplace APIs fail, the engine pauses until data is valid again.

• Gas Optimization: batching minimizes redundant calls.

event ExecutionEvent(
    address indexed collection,
    uint256 buyPrice,
    uint256 relistPrice,
    uint256 profit,
    uint256 timestamp
);

These logs let anyone trace exactly when, why, and how the engine acted.

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🧠 6. Economic Behavior

The engine behaves like a living trader:

• In high-volume periods → it buys more often, accelerating burns.

• In low-volume periods → it accumulates quietly, preserving liquidity.

• Over time → it builds predictable floor support and progressive scarcity.

This rhythm mirrors natural market dynamics — a system that breathes with its own demand.

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🧩 7. Summary

• The Accumulation Pool collects liquidity from royalties.

• The Execution Engine deploys that liquidity via structured floor buys.

• Profits are recycled into the burn flow.

• Every action is transparent, event-based, and parameter-governed.

SquareStrategy doesn’t speculate — it operates. It is the first NFT mechanism where code, not sentiment, drives the market loop.

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