Proposal 27: MCB Native Staking (ROUND 1)

Status

Draft

Motivation

As the V3 mainnet is launching, I suggest launching the first round of MCB native staking to give back to the community.

Staking Reward

The staking reward is the MCB from the community incentive part.

  • 5000 MCB in total
  • 0.025 MCB / Ethereum Block
  • 200,000 Ethereum Block (about 30 days)

Rules

The MCB holders can stake their MCB in the smart contract on Arbitrum, and the reward is distributed to the holders according to the amount of staking. The Staking shall start when Arbitrum is opened to the public users.

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What is the expected timeline for Arbitrum?
Suggested minimum amount required for staking?

  1. Arbitrum may be open to the public in a couple of weeks.
  2. I don’t think there should be the minimum amount require for staking. The reward shall be distrubited proportional.

This is not how you give back to the community. 5000 mcb in total is a joke dude. I suggest you increase it to at least 40000 mcb/month. Early mcb holders deserves fat rewards. We should maintain 100%+ apr throughout the staking period

3 Likes

According to the MCB tokenomcis, if there is no trading volume on MCDEX, the total MCB can be issued for incentive is only 0.2 * 0.75 = 0.15 MCB/block, which is about 30000 MCB /month.

If we use all the 30000 MCB for staking reward, there will be no MCB for Liquidity Mining. If we don’t launch liquidity mining, we may fail to bootstrap the liquidity, and MCDEX will fail.

IMO, 5000 MCB, which is 1/6 of the new issuance, is already a considerable giving back to the community.

5000 MCB, let’s say the APY is 20%, then there are 300k MCB staked, comparing to the circulation supply (around 2M), 15% of the circulation supply is staked. We should consider whether this is appropriate.

Enough liquidity on DEX is also vital. IMO, 15% -20% of the MCB in staking is appropriate.

Lets say 1M tokens are staked, which is reasonable.
With a reward of 5k per month, that means you get 0.5% per month, or about 6% APR.
That’s not attractive at all.

Perpetual Protocol (another dex for perpetuals) has an APR of 90-100%.

Why should we do both of those things at the same time?

Suggest just do LM in the beginning, so as to get good liquidity and trading volume. Staking is not at priority right now.

Pls everyone do the things in the long term.

You should not forget what happened back in 2020, many people asked to reduce mcb supply for months in chats and some even created proposal for that but you guys didn’t listen until shit hits the fan and mcb dumped to the ground then you changed tokenomics 6 months later, but by then all those people had already left mcdex. The last thing you wanna do is piss off the community.

Agree. Mccex should offer better APR than perpetual protocol, this will not only decrease selling pressure but also bring new users to the ecosystem

We do wanna have high APY for the community. But please remember that under current tokenomics, we have a cap for the issued MCB. If there are enough MCB can be issued, then could be great to create the hype especially in the initial stage. But if there are not enough MCB can be issued, then we have to make some trade-off here - liquidity mining, transaction mining, staking, how to distribute the MCB among these. So I suggest to discuss the staking reward under different circumstances.

How do u plan to retain and gain new users if the rewards are low af? Do you not understand the importance of staking and LP rewards?. The whole point of staking it to stop the price from dumping and attract new buyers. Not only staking, you should also increase Lp rewards, I suggest you increase the community incentive part to at least 200k mcb for few months. These apy’s are laughable for an altcoin

Since the tokenomics is flawed( incentive cap too low), how about a new proposal?

This kind of thinking is short sighted, if you have a long term outlook for this project and believe we will attract users which will generate fees then you should give fuck all about whether or not you’re getting high APY right now. This is a gesture of appreciation for the community, we have no users, no revenue.

I propose we skip this tiny staking reward all together and only institute staking once we have sufficient revenues that make it worth the time to implement and discuss. For now, MCDEX is in its infancy and focus should be on attracting LPs and new users to the platform. Staking can come once we actually have users producing revenues for the DAO.

2 Likes

he thinks staking and lp rewards are gesture of appreciation
he says focus should be on attracting LPs and new users
He doesn’t know fat staking and lp rewards is still one of the best way to attract new users and long term LPs

You clearly have no idea man what you are talking about, As a defi og i suggest u read a bit about top defi protocols

Please consider doing fee sharing like Sushiswap for stakers. Otherwise, with such low APYs, it is not attractive to stake.

1 Like