# Trading and Price Model

**Esteem’s Pricing Model**

* **Initial Price:** $**16 per Esteem at launch.**
* **Daily Price Increase:** **+0.25 USD per day**, ensuring **gradual price appreciation** and fair value for late entrants.

**Esteem’s Unique Minting and Smelting Mechanism**

* **Esteem** may be **minted at will** using **any of the assets** listed **in the Stronghold**, removing the need for a liquidity pool. **The funds** so used **increase Stronghold deposits**, **providing** the Wildlands with **more borrowing capacity**.
* **Esteem** may be **burned at will** to receive **Favor**, with a **conversion rate of 70%** of Esteem’s current price in **Favor value**. This **ensures** that any reduction of Esteem does not impair the **Stronghold's stability**.
* This system ensures **seamless adjustment to demand** while **preventing** **protocol instability**.

