 The Trading Mining program v2 seeks to incentivize the trading volume and open interests. Meanwhile, it encourages traders to stake MCB for long-term value.

MCB will be distributed to traders based on a formula that rewards a combination of fees paid, open interest, and staking score. MCB will be distributed on a 14-day epoch basis and is not subject to any vesting or lockups. The number of MCB of each epoch is determined by MCDEX DAO governance.

The function below is used to compute how much MCB is awarded to each trader during each epoch:

w=f^{\alpha } \cdot d^{\beta} \cdot s^{\gamma}
r=R\cdot \frac{w}{\sum_{n}{w_{n}}}
Term Definition
r Reward for a specific trader.
R Total reward to be split between all traders in the pool for the epoch.
f Total fees paid by a trader in this epoch.
d A trader’s average open interest (measured every minute) across all selected markets in this epoch.
s A traders’ average MCB staking score (measured every minute) in this epoch.
α A constant that determines the weight of fees. The initial value is α= 0.7.
β A constant that determines the weight of open interest. The initial value is β=0.3.
γ A constant that determines the weight of the staking score. The initial value is γ=0.3.

### MCB Staking Score

A trader can obtain Staking Score by locking MCB in the staking smart contract. The lock time of staking is 100 days.

The Staking Score (s) is defined as follows:

s=n\cdot t
Term Definition
n The number of staked MCB.
t The remaining lock time in days.

#### Update of Lock Time

If the trader stakes multi-times, the remaining lock time is the weighted average value of each staking.

Supposing a trader has n staked MCB and the remaining lock time is t, if he stakes another m MCB, the remaining lock time t is updated as follows:

t=\frac{t\cdot n+T\cdot m}{n+m}

The initial value of T is 100 days, which can be changed by MCDEX DAO governance.

Great proposal. Support to implement on both Arbitrum and BSC network.