The money-backed state of tokens issued under the DYCO framework makes it possible to profit on a token even if it drops in price.
This is possible by buying tokens below the price floor (buyback value) and then claiming a buyback for a risk-free profit.
A mirror flip is created: the profits generated from buying a token below the buyback value mirror the effect of selling a token above the ICO price.
For example, buying a token for 10% below the price floor and then claiming a buyback generates profits, as does selling a token for 10% above ICO price.
Only DYCO participants have the ability to claim a buyback; the value of this privilege is increased by the opportunity to mirror flip. Though, to ensure a wide number of DYCO participants get to benefit from mirror flip opportunities, the amount of exchange-bought tokens a participant can claim a buyback for is capped at 4 times his/her DYCO purchase.
For example, if a person bought 5,000 tokens in the DYCO, then this person can claim a buyback for up to 20,000 tokens bought on an exchange.
The opportunity to refund surplus tokens opens up only in the secondary buyback phase of each buyback round. [More Details on Buybacks]
Secondary Market Outlook: https://medium.com/daomaker/incentive-theory-in-a-dynamic-coin-offering-dyco-5f1d4218e9c8
Buyback System Explained: https://medium.com/daomaker/dyco-buyback-system-explained-4b5b0da68a3f
Mirror Flips — Profits from Token Drops: https://medium.com/@SolidWater/what-is-a-mirror-flip-and-how-to-profit-through-it-f036fd870d1b