Proposal 25: Launch liquidity mining and transaction mining when v3 launch

Status

Approved

1. Motivation

We are deploying the v3 on Arbitrum Mainnet, and it will open to the users in later June. It is important to bootstrap liquidity on the v3 pool and abstract more traders. As a result, I propose to launch liquidity mining and transaction mining when v3 officially launches.

2. MCB Budget

According to the new tokenomics, there is a minimal issuance speed of 0.2 MCB per Ethereum block(about 1300 per day), and it is designed for basic mining. And we have set the MCDEX DAO genesis date to May 1st.. So I suggest using about one-month minimal newly issuance MCB for the incentive. Also, notice that 75% of the newly issued MCB is for the community. The total MCB budget for this proposal is about:

1300 * 28 * 0.75 = 27300 MCB

And half of the budget is used for liquidity mining, and the other half is used for transaction mining.

3. Liquidity Mining

Mining Pool

The POOl operated by MCDEX DAO.

Incentive

0.15 MCB per Ethereum block for all the LP in the mining pool

Duration

14 days since v3 launches

DAO’s Liquidity

Since the MCDEX DAO will also add liquidity to the pool and become one of the LPs, the DAO will also get the mining reward. DAO should transfer such MCB reward to the DAO vault for further usage.

4. Transaction Mining

Transaction Mining is to give the trader some fee rebate, which is paid in MCB. It reduces the trader’s trading cost and is a common way to attract traders.

Mining Pool

The POOl operated by MCDEX DAO.

MCB Budget

13650 MCB

Fee Rebate Rate

I suggest granting MCDEX Foundation the right to adjust the rebate rate flexibly according to the situation. The MCDEX Foundation CAN set a rebate rate in the range [0, 100%].

Duration

The transaction mining has no specific end time. It should last until the budget is exhausted.

5. Note

  • This is a proposal about the new MCB issuance. I suggest the community to discuss it and suggestion is welcome.
  • We will begin the vote on June 3rd.
    MCDEX Governance Voting App