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MPH Tokenomics

# How is MPH distributed?

An initial supply of 88,000 MPH was minted at launch and distributed via our liquidity mining program on Uniswap.
When someone interacts with the protocol, a certain amount of MPH rewards are continuously vested to the user based on various dynamic system parameters. For example, earning fixed-rate yield or holding yield tokens allows you to earn some MPH rewards.

## MPH Total supply

The MPH total supply depends on TVL's growth. Currently, 88mph incentivizes the lenders to deposit their funds in the fixed-interest rate pools by rewarding them with new MPH distributed according to an issuance rate. The governance will be in charge to monitor the protocol's parameters and decide from where the MPH rewards come from (new issuance and/or governance treasury). So it's up to the MPH holders to decide how to stimulate TVL growth, and by doing so, generate more revenues for MPH stakers, without diluting too many early adopters.
Therefore, you can conclude that there isn't a maximum supply but the total supply is in the hand of the MPH holders.

## Fixed yield rate MPH rewards

When a user deposits assets to earn a fixed yield rate via 88mph, they will receive newly-minted MPH tokens equal to
$depositAmount×depositPeriod \times depositIssuanceMultiplier$
which will be continuously vested over the deposit duration. The vesting stream is represented using NFTs (ERC-721).

### Example

Suppose that Vitalik deposits 100 DAI for 180 days, and the asset's issuance multiplier for DAI deposits is 0.01 MPH / (DAI x day). Then the total MPH reward will be 100 DAI x 180 days x 0.01 = 180 MPH.
This is assuming that the deposit is not modified. If the deposit is withdrawn or topped up, the reward for the remaining deposit period will be determined using the same formula with the updated values. For instance, if after 60 days Vitalik withdraws 50 DAI, he would have earned 100 DAI x 60 days x 0.01= 60 MPH so far, and for the remaining period he would earn 50 DAI x 120 days x 0.01 = 60 MPH.

## Yield token MPH rewards

When a user buys yield tokens, they will receive newly-minted MPH tokens as the underlying deposit earns interest. The total MPH one receives is equal to
$interestEarned×yieldTokenIssuanceMultiplier$
where interestEarned is the amount of floating-rate interest the user has received from their yield tokens.

### Refunds

When a deposit is partially or fully withdrawn, the corresponding yield tokens will receive a refund for the lost future yield. Note that this does not give extra MPH to the yield token holders, since the interestEarned value does not include refunds. However, the rate at which the yield token holders earn interest would be decreased, since the amount of principal they earn interest on has been decreased, meaning the rate at which they earn MPH is also decreased.

### Example

Suppose that Vitalik deposits 100 DAI for 1 year, and Gavin bought all of the corresponding yield tokens immediately after for 5 DAI. Suppose the average floating interest rate over the 1 year was 10%, then the total interest earned by Gavin would be (100 + 5) DAI x 10% = 10.5 DAI. Suppose the pool's MPH issuance rate multiplier for yield tokens is 0.01 MPH / DAI, then the total MPH Gavin earns would be 10.5 DAI * 0.01 = 0.105 MPH. Gavin would receive the MPH as the floating rate interest is being earned, similar to vesting.
Suppose that Vitalik actually withdrew 50 DAI after half a year. Then the total interest Gavin earns would be (100 + 5) DAI x 10% / 2 + (50 + 2.5) DAI x 10% / 2 = 7.875 DAI, and the total MPH Gavin earns would be 7.875 DAI x 0.01 = 0.07875 MPH.

## Issuance rate multiplier

The issuance multiplier of each pool is configured by the governance multisig.
For issuance rate updates, we use the governance multisig directly as the contract owner. The protocol's parameters will be handed over to the community token holders when the governance will be more mature.

# How 88mph ensures the long term sustainability of the protocol

The fixed-rate yield pools and yield tokens generate revenues for the 88mph developer fund and governance treasury from the MPH minter contract fees (1O% of all MPH reward distributed to users).

## Developer fund

Whenever MPH is minted by user activities, an additional 10% of the minted amount is minted and sent to the developer fund. These MPH tokens will be used to pay for future development & maintenance of the protocol.
Development funds controlled by 88mph SA: 0xfecBad5D60725EB6fd10f8936e02fa203fd27E4b

## Governance treasury

Whenever MPH is minted by user activities, an additional 10% of the minted amount is minted and sent to the governance treasury. These MPH tokens will be used according to the governance proposals approved by the community on the Snapshot page and the 88mph foundation (under creation).
Governance treasury controlled by the 88mph Foundation: 0x56f34826Cc63151f74FA8f701E4f73C5EAae52AD