(MIP1) - Arbitrum transfer and staking / reward model modification

Introduction:

The proposal aims to bridge the MVD token to the Arbitrum network (MVD will still stay Native on Eth-Mainnet), a layer 2 scaling solution for Ethereum. This will enable faster and more cost-effective transactions on the Metavault ecosystem, as well as increase the interoperability of the MVD token with other DeFi protocols and applications. By bridging the token to Arbitrum, the Metavault ecosystem will become more accessible and user-friendly, making it easier for users to engage.

The proposal also seeks to update the staking and earning distribution model. This will increase the value of the MVD token for its holders, by offering more attractive rewards and incentives for staking and earning on the platform. As a result, the proposal will create a more sustainable and long-term value proposition for the MVD token, which will benefit both existing and future token holders.

Proposal:

1. Bridging MVD to Arbitrum: The Metavault team will work on bridging the token to Arbitrum to increase accessibility and scalability. This will also allow for faster transactions and lower gas fees, making it easier and more cost-effective for users to interact with the MVD ecosystem. The MVD token will remain ETH native.
2. Transferring Staking Smart Contracts to Arbitrum: The staking smart contracts will be transferred to Arbitrum to take advantage of the benefits of the bridging. This will also make staking more efficient and cost-effective for users.
3. Changing Staking Model to Like GRAIL and xGRAIL: The staking model will be changed to a similar model used by GRAIL (MVD) and xGRAIL (gMVD). This will help to increase the value of the MVD token by creating a deflationary mechanism, which will reduce the supply of the token over time.
4. Changing Earning Distribution Model: The earning distribution model will be updated to increase the percentage of revenue paid in USDC to 50% (from 20%), with the reinvestment threshold decreased to 50% (from 80%). This change will increase the amount of USDC paid as staking rewards and reduce the amount of USDC compounded back into the treasury.
5. Removing Redeem Function Against Treasury: The redeem function against the treasury will be removed. Instead, a pair of MVD/USDC on Camelot DEX will be established, creating a DEX pair instead of only CEX listing. A buyback/burn keeper will be operated to protect the Risk-free-value (RFV).

Conclusion:

The proposed changes are designed to improve the overall performance and user experience of the Metavault (MVD) ecosystem. By making the system more efficient, users will be able to access its features and services faster and with greater ease. This will result in an enhanced user experience and increased user satisfaction.

The changes aim to increase the value of the MVD ecosystem for its users. By introducing new features and improving existing ones, the system will become more useful and versatile. This will result in a more valuable ecosystem that offers a wider range of benefits and opportunities to its users.

Overall, the proposed changes are intended to attract more users to the MVD ecosystem and enhance its overall performance and value.