Budo Bond Authorization 2025
Budo Bond Authorization 2025
Passed on 13 October 2025 and signed 15 October 2025.
Authored by: Ghost Secretary of The Treasury
Preamble. To meet approved near-term expenditures while preserving market discipline, the Senate authorizes a small issuance of short-term discount obligations.
General Applicability. This Act is subject to the Government Bonds Expansion Act and its amendments.
Article 1 — Authorization
§1. The Treasury may issue up to five (5) discount obligations (“Budo Bonds”).
§2. Each Budo Bond has 5,000 Tau face value and 13-week maturity from settlement.
§3. Aggregate face shall not exceed 25,000 Tau.
Article 2 — Auction
§1. Sale by uniform-price Dutch auction.
§2. Bids quoted as discount yield, two decimals, 0.25% minimum tick.
§3. Treasury may publish a non-binding guidance range of 12–20%.
§4. Per-winner cap: max one (1) Budo Bond per bidder.
§5. Participation floor: auction valid only if ≥ 5 distinct eligible bidders submit valid bids.
Article 3 — Eligibility
§1. Citizens-only primary issuance; foreign primary sales are void.
§2. The Treasury shall verify Tau accounts prior to allocation.
§3. Not being in the server at the time the bond expires will void the bond
Article 4 — Settlement & Transparency
§1. T+1 settlement following auction close; book-entry issuance with unique security identifiers and ownership records.
§2. Within 24 hours, Treasury shall publish results (clearing yield, price, total bids, and allocations).
Article 5 — Backing & Repayment
§1. Budo Bonds are general obligations of SimDemocracy.
§2. The following pledged revenues have first claim to debt service until maturity: PledgedRevenuesPledged RevenuesPledgedRevenues.
§3. At maturity Treasury shall pay face value to the holder of record from pledged revenues and, if needed, the Government Reserve, in accordance with governing bond law.
Article 6 — Expiration & Effect
§1. This authorization expires upon settlement of all five Budo Bonds or 30 days after enactment, whichever occurs first.
§2. This Act takes effect immediately upon passage.