Proposal 51-1 Tokenomics Improvements

We propose improving the tokenomics with upgraded MCB utilities and releasing three new tokens for the V4 protocol. The new tokenomics involves four tokens:

MCB - Main Token MUX - Reward Token veMUX - Governance Token MUXLP - Liquidity Provider Token

MCB MCB is the protocol’s main token. Users can lock MCB to receive veMUX which entitles them to protocol income and MUX rewards.

Supply MCB token supply cap: 4,803,144

3,803,144 MCB tokens are from the current circulation. 1,000,000 MCB tokens are reserved for future MUX vesting. We hope the supply change can make the tokenomics more sustainable, reduce token inflation and cultivate long-term token holders.

The supply cap won’t change unless a governance proposal for increasing the cap is initiated and passed. If the supply cap is voted to increase, the change should take effect after a 14-day timelock.

Locked-Staking Users can lock MCB and / or MUX (from 2 weeks to 4 years) to obtain veMUX. The locked-staking is time-weighted, so longer time locks will be allocated with more distributed veMUX.

1 MCB or MUX locked for 2 weeks = 0.009589 veMUX 1 MCB or MUX locked for 1 month = 0.020548 veMUX 1 MCB or MUX locked for 1 year = 0.25 veMUX 1 MCB or MUX locked for 4 years = 1 veMUX MUX MUX is the protocol’s reward token. Users can earn MUX through holding veMUX or staking MUXLP.

Utility MUX tokens can be utilized in two different options: stake MUX to obtain veMUX, or vest MUX into MCB.

The current supply cap for MUX is 1,000,000, and the daily emission is 1,000. The supply of MUX tokens will decrease if they are vested into MCB; the vesting process will take one year. The MUX supply won’t increase unless a related governance proposal is initiated and passed. If the supply cap is voted to increase, the change should take effect after a 14-day timelock.

Locked-Staking The locked-staking rules and rewards distribution for staked MUX are identical with staked MCB.

Vesting Vest MUX to MCB tokens linearly over one year. Two channels are available for vesting:

Quota channel: Vest MUX allowed by the quota, which is correlated with veMUX. The quota increases as veMUX generates new MUX and decreases as MUX converts into MCB. Capacity channel: Vest MUX allowed by capacity, which is determined by users’ reserved MUXLP tokens. The capacity will not change as long as users’ reserved MUXLP tokens remain staked. MUX tokens are non-transferable and only available on Arbitrum.

veMUX veMUX is the protocol governance token; with more veMUX comes more voting power on protocol governance. Users can obtain veMUX from locking MCB and / or MUX. Holding veMUX will grant users protocol income (protocol fees and third-party DEX mining rewards) and MUX rewards. veMUX tokens are minted when users lock MCB and / or MUX and will be burnt as the lock time decreases.

veMUX tokens are non-transferable and only available on Arbitrum.

MUXLP MUXLP is the protocol’s liquidity provider token, which users can buy with assets allowed by the pool portfolio. After buying the tokens, users can stake them to earn protocol income(protocol fees and third-party DEX mining yield) and MUX rewards.

Supply There is no supply cap for MUXLP tokens. MUXLP tokens are minted when buy orders are filled, and burnt when sold.

Protocol Income & Rewards Protocol Income Allocation The protocol income collected from trading fees and DEX mining yield will be allocated as follows:

Total Protocol Income × 50% × POR: Allocate for veMUX holders in ETH POR is the rate of protocol owned liquidity Total Protocol Income × 50% × (1 - POR): Allocate for MUXLP stakers in ETH Total Protocol Income × 50%: Purchase MUXLP and add as protocol-owned liquidity MUX Rewards Allocation 1,000 MUX will be distributed to veMUX holders and MUXLP stakers daily, allocated as follows:

1000 * (1-veRate) *(1-POR): Allocate for MUXLP stakers veRate is the MCB and MUX staking ratio veRate = veMUX Total Supply / (MCB Total Supply + MUX Total Supply) The rest will be allocated for veMUX holders