MANTRA Chain - Layer 1 Tokenomics Update

Dear Sherpa Community,

MANTRA has witnessed remarkable growth across all dimensions, and together with your support, we have successfully launched our L1 Blockchain, establishing ourselves as a thought leader and market pioneer in the RWA tokenization space. This unprecedented expansion brings forth new opportunities and challenges, prompting us to propose adjustments to our existing tokenomics. These modifications are designed to align with our evolving landscape and to ensure sustainable value generation for the years to come.

The proposed adjustments follow on from the most recent tokenomics proposal, which was approved shortly before the launch of the MANTRA Chain Mainnet. For your reference, please see the proposal here: https://snapshot.box/#/s:mantra-dao.eth/proposal/0x2dbc7f0b6e35bb560a4e5571863ef9cb9813f63170eacaf48f0522653adebb70

Reasons for Proposal

As our CEO, JPM, recently outlined in a thread (https://x.com/jp_mullin888/status/1865757690687000987) , the evolving landscape necessitates a revision of both the cliff and vesting schedules within our tokenomics. This adjustment is essential for MANTRA to achieve a balanced approach to value generation and token distribution, ensuring that we do not hinder our next phase of exponential growth.

We have been attentive to the concerns raised by our community and are committed to providing full transparency regarding the finalized tokenomics. Consequently, instead of relying on general monthly schedules, this proposal includes specific dates to enhance clarity.

Important Note: While we propose adjustments to the token release schedules, individual allocations earned through various campaigns will remain unchanged.

Proposal Summary

Vesting & Cliff schedule adjustments

We propose the following adjustments to the vesting and cliff schedules. Below, we will provide a detailed explanation for each category.

OM Upgrade

We propose an adjustment to the OM Upgrade vesting schedule. Under this adjustment, the allocation will vest equally for all Sherpas who have earned it. The cliff period will conclude on March 18, 2025, followed by a linear vesting schedule that extends until October 16, 2028.

Airdrop

We propose a 10% unlock of the initial allocation for the Airdrop, claimable from March 18, 2025. This will be followed by a 6-month cliff until September 18, 2025. On that date, linear vesting for the remaining amount will commence and continue until it concludes on March 18, 2027 - one month before the cliff for the Team & Core Contributors bucket ends.

Additionally, we propose that all wallets undergo a second phase of anti-sybil checks. Any identified allocations made to bots will be publicly disclosed, and the corresponding tokens will be burned from the Airdrop bucket. For instance, if 1 million OM are found allocated to bots after the second anti-sybil check, 1 million out of 50 million OM will be burned, leaving 49 million OM available for distribution to verified addresses.

Furthermore, we commit to the community that there will be no further extensions to the vesting of the Airdrop. However, we reserve the right to decrease the time to vesting completion through additional periodic drops and/or a shortening of the vesting period.

Team & Core Contributor Incentives

We propose extending the cliff and vesting period for the Team and Core Contributor Incentives. The cliff will conclude on April 23, 2027, which is nearly one month after all airdrop tokens are fully vested. The vesting for the Team and Core Contributor Incentives will end on October 22, 2029, aligning with our goal of making RWAs mainstream investments by 2030.

Pre-Seed & Seed

Pre-seed token cliff ends on October 23, 2025, with vesting ending on October 23, 2027. Seed token cliff ends on April 23, 2025, with vesting ending on April 23, 2026.

Ecosystem

The Ecosystem allocation will remain unchanged. This allocation is aimed at supporting future OM liquidity provision, builder incentives, and ecosystem initiatives from Day 1.

Inflation

We propose decreasing onchain inflation from 8% to 3%, effective January 1, 2025.

Conclusion:

The tremendous growth that MANTRA has experienced over the past months has prompted us to reassess and adjust the previous tokenomics established under different circumstances. By revising the vesting and cliff periods for various buckets and implementing a longer distribution schedule for the entire project, we are laying a solid foundation for a prosperous future. This strategy enables us to continue leading the RWA tokenization space for years to come, generating value for our community, investors, and the broader blockchain industry.

We have consistently demonstrated our commitment to becoming the market-leading Layer 1 chain for RWAs, and we will uphold this vision. We believe that this approach is the best path forward for MANTRA, setting the stage for the next phase of growth for both the organization and our community.

By voting in favor of this proposal, you are fostering long-term alignment between community members—both long-term supporters and new participants—and the team that is building MANTRA Chain, the ledger of record for all RWAs.

Thank you for your continued trust and support.

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We will run this proposal for 7 days (168 hours) commencing at 10 AM UTC on Friday December 20th 2024 and ending at 10 AM UTC on Friday December 27th 2024.