The core of the proposed changes are:
- The upgrade from UNIDX to MOLTEN as the native (gas) token for our Molten L2 Network
- The adoption of MOLTEN as the main governance token
- "Push Pull" monetary policy to allow MOLTEN to be used to grow the protocol
- Opportunity for the team to acquire more capital to accelerate the growth of the Molten network.
Motivation:
We believe the token can be improved to help boost the adoption of the core products developed by the team. Currently, the token has no involvement in the protocol outside of extracting fees from the LPs and the team. This proposal aims to restructure the economics to allow for incentives, a healthy relationship between protocol users and token holders, and allow for sustainable growth.
Core Changes:
- Every 2 months, holders vote on monetary policy to allocate a budget for how many tokens should be used to incentivize various parts of the protocol.
- The leverage protocol dedicates 50% of its fees from various core pools dedicated to offsetting inflation, with the goal to be deflationary. This would be achieved by using fees to buy back the token from the open market, and burning them permanently. The fee split between holders and the team remains 50/50 for the extractable supply side fees.
- UniDex moves from a Synapse xAsset ERC-20 token into a LayerZero OFTv2 token allowing for instant deployment on all chains, native bridge control, team set bridge fees, and near instant bridging between all networks.
- An additional 600,000 tokens would be minted to be sold OTC with a 2 year vesting period & 1 year cliff. This additional capital would be used to scale protocol development, targeting additional developers for Molten & a dedicated marketing and communications team.
- MOLTEN becomes the native gas token on Molten and the native governance token moving forward.
- Staking would be the new primary way for holders to accrue value from the protocols collected fees. Tokens would be staked in a pool specific to a newtork, which allows holders to collect fees at their convenience rather than the current system where the entire supply/holders is exposed to automatic fee distributions.
Migration process:
Existing UNIDX holders can convert to the new token whenever they feel it's the right time. By sending UNIDX to the new token contract, they'll be minted 1:1 and have their UNIDX burned. Existing token LPs can also migrate at their own convenience and don't need to take any action. UNIDX holders would just need to consider that all protocol activity and utility would now be in the new governance token and would be the new native gas token for Molten network.