MIP - 7

PROPOSAL OUTLINE Signal the protocols intention to distribute various fees to xMOZ holders.

SPECIFICATIONS As the MozaicDAO and protocol has begun to flourish, it is in a position to distribute modest fees/rewards to xMOZ holders.

Initial rewards will be sourced from (but is not limited to):

• 20% of MOZ from LP harvests, to be converted to xMOZ
• xCONE staking rewards (paid out in wETH)
• Withdrawal Penalties
• Claim Fees from the Earn Terminal

These token rewards are to be added weekly.

The protocol will also bootstrap the reward pool with an additional 250,000 xMOZ, sourced from LP fees (approx. 1.5 weeks worth).

No new tokens will enter the circulating supply.

JUSTIFICATION With the upcoming release of the Mozaic Earn Terminal, the protocol would like to accumulate rewards within the localised reward ‘pool’ before commencing the staking initiative.

An announcement for the start of reward distribution will be made after the release of the Earn Terminal to:

• Allow for further rewards to accrue
• Allow for participants to prepare their tokens to stake (if they so desire)

OVERALL COST The cost to the protocol are in the form of the aforementioned incentives that are to be distributed.

It is again to be noted that no new tokens will enter the circulating supply.

TIMEFRAME Proposed Discussion - 72 hours (closed) Call Out - 24 hours (closed) Snapshot Voting - 72 hours (live)

STEPS TO IMPLEMENT Upon approval the Core Contributors will:

• Release details of the ‘Earn Terminal’
• Begin to deposit and accrue the respective token(s) in the reward pool
• Open xMOZ staking
• Begin weekly reward distributions

CONSIDERATIONS Quorum threshold (4,000,000 xMOZ) - maintained

Snapshot voting requires at least 65% of the vote weighting for a proposal to be considered 'APPROVED'

The MozaicDAO also recognises the need to solve for anti-sybil methods due to the nature of the Quadratic Voting system. Additional discussions to be had.