Currently, the Etheruem Gas Price is extremely high (about 500gwei), which is beyond our design (below 10 gwei). As a result, the trading cost (gas + fee) is too high for the traders. And the platform cannot make a profit from the fee. Besides, due to the current AMM’s design, the slippage is high, and capital efficiency is low. So the liquidity mining is just a token distribution way of MCB and makes little use to the platform.
The team is working hard to deal with the problems:
- Developing MC-Fund. As MC-Fund raises funds and trades at a very big volume, the gas fee problem could be ignored in this case. We will launch MC-Fund in Oct.
- Developing MCDEX v3. v3 has a new AMM model with high capital efficiency and will be deployed to L2 and some other faster blockchains.
I suggest the community to give the team more time. I propose to reduce the mining reward to 0.2MCB/Block (10% of current value) ASAP. And make it larger when MC-Fund launches and V3 launches.
If this proposal is approved. It will make the TLV in AMM reduce hugely. However, as the AMM’s capital efficiency is low, which means the liquidity is not be used efficiently, it will not hurt the current traders and the traders still can trade on Order Book. On the other hand, the inflation of MCB will be hugely reduced until we have a solid and profitable product.
Please note we are still following the white paper, that only up to 5% (no more than 5%) of MCB tokens are used in user incentives every year.
This proposal will take effect 24 hours after the voting is passed.