PION to MUON Migration & Tokenomics Adjustments

Preamble

This proposal outlines the transition of PION and bonPION holders into the MUON ecosystem, ensuring a fair and structured migration process. With the MUON Token Generation Event (TGE) scheduled for March 5, 2025, this initiative aims to:

• Facilitate a seamless migration for all PION stakeholders.
• Ensure pre-sale participants who never interacted with PION are fairly accounted for.
• Recognize and reward active contributors through bonus allocations.
• Define a structured vesting schedule with community-driven governance.

In a previous proposal, we introduced bonMUON as part of the migration process. However, after further evaluation, we have decided to remove it, as it does not provide any functional benefit within the MUON network. Since token distribution is already governed by time-based vesting without a locking mechanism, bonMUON would only add unnecessary complexity and friction for new participants. To ensure a smoother and more efficient transition, the team has opted to eliminate bonMUON entirely.

Summary

The PION network functioned as an initial pre-sale mechanism for MUON. As part of the migration plan, the 30% Ecosystem Rewards pool will be repurposed to facilitate the token swap. This ensures:

PION and bonPION holders receive fair compensation as they transition to MUON. Active contributors of Pion Network receive enhanced rewards. All PION holders, regardless of participation level, receive a guaranteed MUON allocation. This migration ensures an equitable structure for all stakeholders while reinforcing MUON’s long-term sustainability.

Motivation

The goal of this proposal is to create a sustainable and community-driven network while ensuring a smooth transition for all participants. We aim to provide clarity and fairness to both early supporters and new contributors, reinforcing Muon’s long-term vision. By aligning incentives and governance with the community’s input, we ensure the continued growth and decentralization of the Muon Network.

Rationale

This migration is designed to balance immediate liquidity needs with long-term sustainability. Given the delay in the MUON TGE, ensuring token availability has become increasingly important. The proposed governance framework allows the community to determine the vesting period and liquidity distribution, ensuring a fair and decentralized decision-making process. This approach guarantees that all stakeholders—early supporters, liquidity providers, and node operators — are fairly integrated into a well-aligned, community-driven tokenomics model.

Migration Details

Exchange Ratio

1 PION = 5.65 MUON

Governance Vote

Snapshot Voting Details Start Date: February 7, 2025 End Date: February 17, 2025 Eligible Voters: Active Pion node operators (Voting power based on node power)

Questions

Q1) Should we merge PION into MUON and move forward with a single-token model?

Yes No

Q2) Should liquid $PION migrate fully to liquid $MUON at TGE?

Yes No

Q3) Should we implement a 12% inflation on $MUON for the first two years to incentivize Muon node operators?

Yes No

Q4) What should be the vesting period for migrated $MUON?

27 months (Maintain current schedule) 12 months (Major reduction) 0 months (No vesting)

Q5) What percentage of $MUON should be liquid at TGE? (If the community votes for no vesting, this option will be irrelevant.)

10% 20%

Q6) How should the migration be handled?

Complete shutdown of Pion and restart Muon from scratch. Migration with staked MUON.

Key Points to Consider for Q6

Option 1: Complete Shutdown & Restart

• The Pion Network shuts down completely, and Muon restarts from scratch.
• All users receive liquid MUON (as per the vesting vote) and must manually stake to run a node.
• This causes network downtime, disrupting apps/services and requiring manual redeployment by node operators.

Option 2: Migration with Staked MUON

• Pion transitions seamlessly into Muon, maintaining existing stakes and nodes.
• All users receive staked MUON, but they can unstake anytime (with a 2-week unlock period).
• No major downtime, ensuring apps/services continue running smoothly.
• Favored outcome: Prioritizes network stability while keeping MUON liquid but initially staked.