CCV Mechanism

The Continuous Collateralized Vault (CCV) is the core economic engine of The Candidate Protocol — a transparent, on-chain treasury that systematically acquires CANDI from the open market.

What Is the CCV?

The CCV is a smart contract vault that receives 50% of all protocol revenue in USDC. These funds are automatically used to purchase CANDI tokens through Jupiter's DCA (Dollar Cost Averaging) protocol, removing them from circulation.

Unlike traditional buyback programs that rely on discretionary decisions, the CCV operates automatically and transparently. Every transaction is on-chain and verifiable.

The 50% Rule

Half of every dollar that enters the protocol goes to the CCV. This rule applies across all revenue streams — both on-chain and off-chain.

Automated On-Chain Splits

These revenue streams are split automatically by smart contracts at the moment of transaction:

• Phase 1 contract sales
• Phase 2 contract sales
• Marketplace transaction fees
• Liquidity pool trading fees (swept and split automatically)

No human intervention required. The split happens in the same transaction as the revenue event.

Off-Chain Revenue

Future revenue streams that originate off-chain will also follow the 50% rule:

• Advertising revenue
• Show licensing fees
• Merchandise sales
• Sponsorships and partnerships

Off-chain revenue is converted to USDC and deposited to the CCV via multisig-controlled transactions, publicly verifiable on-chain.

How Jupiter DCA Works

Rather than executing large market orders that could move the price, the CCV uses Jupiter's DCA protocol to spread purchases across many small orders throughout each day.

This approach minimizes market impact and provides consistent, predictable acquisition rather than sporadic large purchases. It also makes it significantly harder for traders to front-run the buys — since purchases aren't executed in predictable lump sums at scheduled times, there's no easy way to anticipate and exploit them.

The Self-Replenishing Cycle

The CCV isn't a static treasury — it's an active participant in the protocol's economy. When Phase 2 begins, the CCV sells vesting contracts using tokens it acquired from the market. But here's the key: 50% of every Phase 2 sale flows right back to the CCV, which uses it to buy more tokens.

The CCV flywheel: a self-sustaining cycle powered by protocol activity

This creates a sustainable cycle where the protocol can continue operating indefinitely, powered by its own activity.

What the CCV Cannot Do

Backing Phase 2

The tokens accumulated by the CCV serve a critical purpose: they back Phase 2 contract sales. When Phase 2 activates, the protocol sells vesting contracts using tokens the CCV acquired from the market — not newly minted tokens.

This creates a sustainable cycle: Phase 2 revenue flows back to the CCV, which acquires more tokens, which backs more Phase 2 sales. The system perpetuates through its own activity.

Technical Note: The CCV Is Not a Program

Unlike our custom Solana programs, the CCV isn't its own smart contract. It's implemented using Squads-native SPL token accounts:

• CCV USDC Vault — Squads-owned account receiving 50% of all revenue
• CCV CANDI Vault — Squads-owned account accumulating purchased CANDI
• LP Fee Collector — Receives harvested Raydium trading fees
• Jupiter DCA — third-party automated dollar-cost averaging for buybacks

This architecture means the CCV benefits from Squads' governance controls and Jupiter's battle-tested infrastructure rather than requiring custom programs. All CCV accounts are controlled by a 2-of-3 multisig with spending limits and timelocks.

100% Transparent

Every CCV operation happens on-chain and is publicly verifiable:

• All USDC deposits are tracked
• All Jupiter DCA executions are visible
• CCV vault balances are real-time
• Cumulative statistics available via Dune dashboards ↗

There are no off-chain components, no discretionary decisions, and no way to hide activity. What you see is exactly what's happening.