MIP - Optimal Token Emission Curve for MTRG Token

TLDR

1. Change in MTRG emission curve – From current 5% annual inflation to a logarithmic emission curve
2. Cap on maximum supply of MTRG

BACKGROUND

The Layer 1 Meter mainnet went live on July 4, 2020 with fully permissionless node operations live since March 19, 2021 (https://scan.meter.io/). The Meter Network currently has a 5% annual emission which has played a critical role to onboard over 334 validators and 46% staking ratio thereby making the Meter Network more secure.

We believe it is time to shift towards a more optimal token emission rate which continues incentivizing network participation and development while also maintaining network security and avoiding inflation.

PROPOSED EMISSION CURVE

With an aim to shift towards a more optimal token emission rate and introduce a supply cap on MTRG inflation, we propose a logarithmic emission curve.

With this proposal to change to a logarithmic curve, the MTRG emission increases rapidly at first, to slow down considerably later, before finally leveling off as it approaches an asymptote over the duration of the curve.

Maximum Emission 40,000,000 MTRG Duration of Emission 100 Years Emission Halving Every 4 years

The Emission Formula proposed is:

IMPACT ON STAKING YIELD

Assuming the staking ratio, the yield can be estimated for the next 15 years as below;