MPH Tokenomics
Last updated
Last updated
MPH token address: 0x8888801af4d980682e47f1a9036e589479e835c5
The total supply of the MPH token is capped at 1,888,888 tokens.
To avoid a limitation on the future growth of 88mph, the keys to mint MPH tokens will not be burnt, so that after January 1, 2026, MPH holders may vote to ratify a new token supply cap if desired.
At the time of the 88mph's governance vote for the implementation of the 8IP#6 - Implement 88mph Tokenomics 2.0 on Dec 19, 2021, the MPH total supply was roughly 417k tokens distributed to 88mph's users when they interacted with the protocol. With a cap of 1,888,888 tokens, roughly 1.4M tokens remained to be issued over the next 4 years.
The total supply will be distributed as such:
62.5% to community
37.5% to team, advisors, and future employees with 4 years vesting.
The unissued supply of 1.4m will be distributed as such:
52.5% to community
35% to early team and advisors
12.5% to 88mph SA
We think that this total supply distribution is in line with the industry standards (for eg. Curve.fi or Frax.finance distribution)
Community breakdown (52.5% of unissued MPH)
70.5% will be used for incentives to 88mph users over a 4-year distribution schedule:
46.2% will be used for incentives in 2022, which will be immediately minted after the passage of this proposal to prepare for distribution.
30.8% will be used for incentives in 2023
15.4% will be used for incentives in 2024
7.7% will be used for incentives in 2025
13.3% is being allocated to the 88mph foundation that is subject to a 10-year unlocking schedule. The 88mph foundation is a way to steward the protocol into the future and distribute grants to developers and contributors. The foundation aims to progressively decentralize how the governance treasury resources are allocated and work with 88mph Council to make decisions in the best interest of the protocol ecosystem.
9.5% will be immediately minted and unlocked to acquire protocol-owned liquidity.
2.9% will be immediately minted and unlocked to support a bug bounty program denominated in MPH.
3.8% will be immediately minted and sold to strategic community members by the foundation to have operational funds at launch. This strategic allocation will be locked up for 1 year.
Early team and advisors (35% of unissued MPH)
The early team consisted of 2 founders, and multiple contractors, and advisors. Founders, contractors, and advisors will be on standard 4-year vesting schedules.
The early team is a group of passionate developers, product builders, and business leaders, dedicated to the Ethereum Ecosystem. This team delivered many innovative products since 2017 through various market conditions. They’ve committed a significant amount of energy and time to 88mph and proven their talent, commitment, work ethic, and execution ability.
88mph SA (12.5% of unissued MPH)
88mph SA was the original devs shop representing the initial contributors of 88mph protocol since January 15, 2021. Since then, other independant contributors and devs shop joined the journey, such as Szeth Vallano, Dakotah Moses, and Bacon Labs Inc.
88mph SA has no external shareholders and will be under a 4-year vesting schedule.
64.3% will be used to fund future developments of the protocol and its associated costs (contractors, audits, taxes, etc).
28.6% will be allocated to future employees with vesting.
7.1% will be immediately minted and unlocked.
If the governance decides to renegotiate the MPH supply cap after 4 years, the schedule for the increased issuance will be decided by governance at that point in time.
5-year MPH circulation schedule by buckets (cumulative)
In August 2022, 88mph adopted a new system for allocating user incentives, adapted from gauges pioneered by Curve Finance and Balancer protocol.
Notes: xMPH was phased out, in favor of veMPH.
