MIP 14: MTRG Tokenomics Update (30M MTRG Burn)

Introduction

This proposal aims to introduce a plan to burn 30 Million MTRG tokens reserved to fund future ecosystem growth. The proposal will enhance the tokenomics of MTRG, potentially increasing its attractiveness to both current and future investors.

Background

The Total Supply of MTRG through the original Tokenomics design was 70 Million. While the 40 Million MTRG total supply is widely known and accepted within the community, there was repeated feedback on the vitality of 30 Million MTRG minted at the genesis block and reserved for future foundation growth. Here is the excerpt from the Tokenomics Paper;

‘The remaining 30M tokens from the genesis block will be locked indefinitely for the Foundation to fund the future growth of the Meter protocol when it hits the exponential expansion curve. These tokens will only start releasing after the circulating market cap of MTRG exceeds $100M and stays above this threshold for at least 10 calendar days. There will be 1M MTRG tokens released for each $100M increase in circulating market cap until the total circulating market cap reaches $3B. However, under no circumstances will these tokens be released during the first two years after launch. This mechanism was designed to strike a balance between protecting token holders and supporting future development.’

Proposal Details

Based on Community Feedback,

We reiterate the 3 options available to the Meter Community;

Option 1:

1. Burn 30 M MTRG Immediately
2. Burn Period: a. First week of June 2024

Option 2:

1. Burn 25 M MTRG Immediately, Ringfence 5 M MTRG for 5 years, Burn any remaining MTRG after 5 years.
2. Burn Period: a. 25 M MTRG - First week of June 2024 b. Any Remaining MTRG - First week of June 2029

Option 3:

1. Burn 10 M MTRG Immediately
2. Burn 400K MTRG Monthly
3. Emergency Fund limited to 5 M MTRG
4. Burn Period: a. 10 M MTRG - First week of June 2024 b. 400K MTRG Monthly Burn – First week of every month starting July 2024

Governance Proposal Voting

Period of 3 days starting 31 May 2024 00:00 AM UTC to 3 June 2024 00:00 AM UTC.

Users can vote with MTRG, staked MTRG, stMTRG and wstMTRG along with MTRG/ wstMTRG supplied in Sumer and Meridian and MTRG-wstMTRG liquidity on Symmetric. The proposal will pass when it achieves a majority vote. There is no quorum requirement.