MVX Tokenomics revamp

The new cross chain ambitions of MVX and our new Backend as a service model mean that we need to make some strategic changes to optimize our process, simplify it and maximize the benefits, both for Metavault itself, but especially for our stakeholders.

Now that our Perp v2 is fully functional and our migration phase is complete, we want to accelerate our cross-chain expansion, which means:

• Establish more partnerships to launch our Perp v2 on as many chains as possible, through our own projects and our partners'
• Add utilities to the MVX tokens, notably allowing the MVX token to be used as collateral for all Perp trading and/or as a token to pay the fees in order to benefit from a fee reduction
• Make the MVX token available on all chains where our products are present.

Launching the token on multiple chains has several benefits: it increases accessibility for investors, allows MVX holders to take advantage of DeFi opportunities across various chains, and enhances the visibility of the project, among others.

The issue is that the primary benefit of MVX, the revenue-sharing feature, is only accessible through staking on Polygon PoS. As a result, MVX holders on other chains are unable to take advantage of this feature. This is clearly not an ideal situation.

While we have the option to launch the staking contract on multiple chains, it comes with significant limitations:

➯ The process and model become more complicated.

➯ MVX stakers are forced to pay unnecessary fees to claim rewards.

➯ There is an increased risk of smart contract issues with the staking contract.

In our opinion, the ideal solution is to eventually shutdown the staking contract. This would allow MVX holders to passively benefit from Metavault's revenues and growth, without the need to stake, claim, or compound their rewards.

However, this solution has consequences for esMVX and Multiplier Points.

As a reminder, MP tokens are yield bonuses: 100% MP means you will generate twice the reward that your MVX would normally produce alone. esMVX is a token that shares the same rewards as the MVX token on a 1:1 ratio, but it cannot be traded. To convert it into liquid MVX, users must lock the token for 1 year and hold the number of MVX/MVLP that allowed this esMVX to be generated.

Those who have amassed the most esMVX and MP are the ones who have staked and provided liquidity for the longest period. Therefore, stoping the staking contract would disproportionately disadvantage our most dedicated supporters, which is unacceptable to us. Consequently, we need to design a solution that caters to everyone's interests.

We have several proposed solutions that we would like the community to vote on.

Before proceeding, we strongly recommend reading this article for a comprehensive understanding: https://medium.com/@metavault.trade/proposal-to-enhance-mvx-tokenomics-we-need-your-voice-45bd719e54b2

This decision is crucial as it has the potential to fully unlock Metavault's potential, so please take a few minutes to read through.

Here are the six proposed solutions:

Solution 1. Maintain the status quo: Keep the staking system, use the tokens we receive from our partner projects for the treasury and accelerate the Buyback and Burn program.

ELI5: The real yield payouts will remain as they are now, with no additional income being used for the Buyback and Burn program. In addition, there will be no airdrops for holders. Instead, the allocations we receive from partners will be used to accelerate the BB&B program.

Solution 2. Keep the rewards for MVX / esMVX unchanged, but modify the MP system: No more Matic distribution, but MPs will be used as a boost for receiving airdrops (the allocation we receive from our partners and that we plan to distribute)

ELI5: Staking will remain as it is, with only a few changes to the distribution of Real Yield. While stakers will continue to acquire MPs, these MPs will no longer receive any Real Yield. Instead, MPs will serve as the primary indicator for airdrop allocations a user will receive.

Solution 3. Shutdown the staking mechanism, use all income for Buyback and Burn of MVX, use projects airdrops to burn esMVX / MPs.

ELI5: The protocol will no longer distribute rewards. Instead, all income will be used for a Buyback and Burn of MVX, and partner token allocations will be used to BB&B esMVX/MPs.

Solution 4. Shutdown the staking mechanism, use all income for Buyback and Burn of MPs / esMVX and MVX, distribute airdrop / allocations only to MVX holders.

ELI5: No reward distribution anymore, all income of the protocol will be used in a predefined ratio to Buyback/Burn MPs/esMVX/MVX. Partner token allocations will only be distributed to MVX holder/stakers.

Solution 5. Shutdown the staking mechanism, use all income for Buyback and Burn of MPs / esMVX, only distribute airdrop / allocations to MVX.

ELI5: The protocol will no longer distribute rewards. Instead, all income of the protocol will be used in a predefined ratio to Buyback and Burn MPs/esMVX. Partner token allocations will only be distributed to MVX holder/stakers.

Solution 6. Shutdown the staking mechanism, use all income for Buyback and Burn of MVX, use projects allocations to burn esMVX / MPs, and distribute a part to MVX holders

ELI5: The protocol will no longer distribute rewards. Instead, all income of the protocol will be used to Buyback and Burn MVX. Partner token allocations will be partially distribute to MVX staker/holder and the rest to Buyback and Burn MPs & esMVX

Metavault's strategic pivot towards cross-chain ambitions and a Backend as a Service model marks a critical phase in optimizing our ecosystem for broader accessibility and enhanced utility. By fully leveraging our Perp v2 and simplifying the staking process, we aim to unlock the full potential of the MVX token.

As we propose various paths forward, including potentially phasing out the staking contract, we invite our stakeholders to engage actively in shaping the future of Metavault. Your participation is crucial; so please take a few minutes to fully understand this proposal and vote for what you believe is best for Metavault's future.

Thank you in advance ♏️