- Below is the now built out initial concept purposed by
From the Mstable Governance community.
This is a built out nuts and bolts concept that really expands and lends real value to my original proposal to have a Proof Of Commitment concept put forth for the Meta Governance token. The concept was my effort to ignite some discussion around controlling the MTA circulation and create real value for Governance tokens. I was inspired by Darwinia & Kton system. The other community member has taken the concept. He has implemented an LP rewards style hybrid to the concept and built a real break down of how it could actually be implemented into the already existing Mstable Network.
After reading Valon89x proposal for Proof of
Commitment concept, I would like to propose and expanded idea.
The original concept (Proof Of Commitment- Fundamentally Change Staking for MTA) proposed to add a 2nd Tier Value (T2V) via locking MTA rewards.
Essentially, if you earn MTA as an LP to sell interest, go for it. But if you want actual voting rights, there would be a lock period on rewards before they mature into vested voting rights represented by what he called mCommit.
#1 Reduce weekly MTA emmission by 50% and reserve the other 50% for added value “mPrime” (explained later)
#2 Allow rewards locking (unspent rewards can be identified using UTXO info).
#3 Locked rewards mature after 12 months and upon maturity are unlocked AND a token called mVote is issued at a 1:1 ratio.
#4 In order to vote for mStable governance, you must carry 1 MTA and 1 mVote for each vote you wish to cast. mVote tokens are tradeable erc20 tokens so you dont HAVE to lock… You can just buy 1:1 MTA:mVote as well.
#5 In order to give value to all of this, users may also choose to burn 1 mVote and spend MTA to create 1 mPrime.
#6 Remember the 50% emmission reduction? Well here is the magic! When you burn 1 mVote and spend 1 MTA to get 1 mPrime, 1 MTA is taken from the reserve and wrapped WITH the 1 MTA you “spent” so 1 mPrime = 2mta! (And should be able to unwrap to 2 mta… Effectively you are burning the mVote to release the other 50% of your MTA reward, so 1 mVote should price near 1 MTA and 1 mPrime near 2 mta)
#7 Rewards that are spent cannot earn 1 mVote, so the reserve will have a 1:1 nonVoteReward:ReserveSurplus. Unclaimed mPrime rewards should be burned. This accounts for people who earn MTA rewards and dump. 1 dumped MTA reward = 1 burned MTA from reserve.
#8 Alternatively, you could distribute unclaimable mPrime rewards amongst mPrime holders, to encourage the complete cycle of:
Earn>Lock>Claim mVote>hold/vote until you are ready to sell>convert mVote+MTA to mPrime and earn dividends from unPrimed MTA rewards
- I really think this concept could become very successful for Mstable. Italso it may even be a standard to follow, should Mstable implement this successfully, it may be followed by other Governance platforms. Mstable already has tens of millions in TVL just in the Mstable stablecoin token. The Meta token maybe even more TVL if Governance can truly be achieved.