Split Expansion MIC 80/20 between MIB/MIS while Bonds are Outstanding

Current state

Currently, 100% of MIC minted during expansions goes to the Treasury when there are Bonds outstanding.

Issue:

Currently, Boardroom MIS stakers have to wait for MIC rewards until the Treasury is funded to the extent of all outstanding Bonds (MIB). We have seen what this can do to shares if the community lacks belief, as in other forks, where share price goes down, as they have issued nearly 38M bonds in contraction cycle, which will likely require multiple expansions to pay off before Boardroom stakers can expect any rewards.

Further, we now have various DeFi projects farming MIC/USDT. While this is positive for MIC demand and generates greater exposure for MITH Cash, it potentially results in added selling pressure on MIS, and we need to address the demand side of the equation by making it attractive to hold MIS even during contractionary phases.

Proposal:

We propose to modify this as below:

• 80% of minted MIC flows to the Treasury to be made available for MIB redemptions (from 100%)
• 20% of minted MIC flows to the Boardroom

This will continue until the Treasury is funded to cover all outstanding MIB. Once the Treasury balance = MIB outstanding, 100% of seigniorage will go to the Boardroom.

Expected result:

MIS demand will rise, resulting in MIC demand increase, resulting in sooner and more stable recovery and maintenance of peg, in the long term

Issue:

We recognize that this amounts to changing the terms after the fact for current MIB holders, who were expecting 100% of Seigniorage to be made available for redemptions. We do not take this decision lightly, but feel that it is essential to ensure the long-term viability of the project. We also believe that this proposal will lead to stable / stronger recovery of MIC and MIB holders will get paid out in full sooner.

For: Approve Split Expansion 80/20 between MIB/MIS while Bonds are Outstanding

Against: Do nothing