Stake incentive
MUD's allocation reflects a balanced approach to bootstrapping the network while incentivizing long-term contribution.
Tokenomics: Incentives + Scarcity
MUD’s economic model incorporates both yield-based incentives and deflationary controls to balance growth with sustainability.
Staking Mechanics:
MUD tokens can be staked to earn APY
Governance participation is linked to staking weight
Key proposals require at least 33% quorum of staked supply
Deflationary Design:
Transaction Burn: A portion of fees is permanently burned
APY Cap Enforcement: If yield exceeds 20%, surplus issuance is redirected to burn pool
Circulating Supply Control: Long-term staking and ecosystem lockups reduce market float
This dual model aims to reward active contributors while ensuring long-term token scarcity and value retention.
On-Chain Governance Framework
MUD implements a transparent, participatory governance system where protocol evolution is community-driven.
Governance Rules:
Any token holder may vote; proposal creation may require credit-score threshold or staking
To pass, a proposal must:
- Achieve participation > 33% of total voting weight - Receive > 50% approval (excluding abstentions)
Future support for vote delegation, liquid democracy, and dynamic quorum adjustment is planned to enhance resilience and efficiency.
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