Mande Network Tokenomics

$MAND Token Utility

The $MAND token has a three-fold utility within the Mande Network ecosystem:

Staking on Governors:

• $MAND tokens allow holders to participate in governance decisions of the Mande RollApp (L2) by staking on governors.
• Governors vote on your behalf on proposals, suggest changes, or influence the strategic direction of the project.
• Staking on governors provides rewards similar to those in DPoS (Delegated Proof of Stake) chains. This not only incentivizes active participation but also ensures that decisions reflect the collective interests of the community.

Network Gas Fees:

• $MAND tokens are used to pay for transaction fees within the network. This ensures that the network remains sustainable and operational. By using $MAND for gas fees, users contribute to the network’s upkeep and efficiency.

Credibility Staking:

• Users use $MAND tokens as ‘stake’ to vote on the credibility of other users. This unique mechanism ensures that trust is continuously evaluated and rewarded within the network.
• By staking $MAND, a user can increase another user’s reputation score (CRED) within the ecosystem. This process not only enhances the overall trust within the network but also fosters a collaborative environment where users are encouraged to support each other.

Token Release Schedule

• Mande Network RollApp (L2) will have a genesis supply of 20 million $MAND tokens, allocated as per the table below.

Inflationary Schedule:

• The token supply follows an inflationary schedule to facilitate rewards for governance staking, credibility staking & ecosystem grants.
• Starting with 54%, the inflation rate halves every 2 years. This controlled inflation mechanism ensures that there are sufficient tokens for rewarding users while maintaining the value of $MAND over time.
• The ecosystem will reach a maximum supply of 100 million $MAND tokens over 20 years. This long-term approach aims to balance immediate incentives with sustainable growth.

Newly released tokens from inflation, are distributed as follows:

Credibility Staking Rewards to community— 30%

Governance Staking Rewards to community— 50%

Ecosystem Grants to community projects — 20%

Credibility Staking Rewards:

• 30% of the tokens released per block form a pool to reward users proportional to their CRED on the network.
• Rewards are distributed via a DApp managed by the Mande Foundation at app.mande.network . This decentralised approach ensures transparency and fairness in the distribution process.

Governance Staking Rewards:

• 50% of the tokens released per block are distributed to $MAND stakers who stake on governors of the Mande RollApp.
• Staking on governors provides rewards similar to staking on validators on L1 chains such as Dymension. This ensures that those who actively participate in governance are appropriately rewarded, fostering a more engaged community.

Ecosystem Grants:

• 20% of the tokens released per block form the ecosystem grants pool.
• Grants are awarded to development teams building DApps on Mande Network, as voted via governance proposals. This allocation supports continuous innovation and development within the network, ensuring its long-term viability and growth.

Conclusion

The $MAND token model is crafted to bootstrap the Mande Network with well-aligned incentives for key stakeholders and contributors.

The Mande Labs development team has already developed features that are expected to impact the optimal token model design. These features aim to enhance the network’s functionality and user experience, further solidifying Mande Network’s position as a leader in on-chain credibility.

This token model is intended to be adapted and updated by the community over time. Such adjustments to the model can be proposed and voted on through on-chain governance, ensuring that $MAND holders can shape the future of the platform to support their vision.