Merkle Trade TGE Phase 1: Genesis Staking

In our previous announcement, we introduced the Merkle Trade Token Generation Event sequence, where we emphasized the importance of token utility and price discovery, providing multiple options to cater to diverse user needs. This includes long-term holders seeking passive income and MKL enthusiasts aiming to maximize holdings.

Today, we are excited to unveil the first phase of our sequence: Genesis Staking. In line with our goals, we aim to offer early Merkle Trade adopters an exclusive opportunity to earn enhanced rewards for their long-term commitment and dedication.

This comprehensive guide will detail the Vote-escrowed (ve) staking model of MKL and provide an overview of the intent and format of the Genesis Staking implementation.

Voted-escrowed Staking Model

Our ve (vote-escrowed) staking model encourages long-term commitment and active participation. Here’s how it works:

MKL Tokens — Primary transferable utility tokens within the ecosystem.

preMKL Tokens— Non-transferable, pre-TGE MKL tokens that will be converted 1:1 to MKL tokens upon the TGE sequence is concluded.

esMKL Tokens — These are non-transferable reward tokens earned through various incentive programs or by holding veMKL tokens. esMKL tokens can be staked to obtain veMKL tokens or vested linearly over 90 days to convert them into MKL tokens.

veMKL Tokens — Non-transferable tokens obtained by staking MKL or esMKL tokens for a chosen lockup period (min: 2 weeks, max: 52 weeks). Core features of veMKL tokens are as follows.

• veMKL tokens entitle holders to a share of the protocol’s revenue, proportional to their share of the total veMKL issuance. veMKL tokens become eligible for revenue sharing in the following epoch (1 epoch = 1 week), with the actual revenue distribution occurring in the subsequent epoch.
• veMKL tokens will grant governance rights once the transition to a DAO-led structure is complete.
• veMKL tokens will gain additional features such as boosted referral rebates, exclusive benefits for trading seasons, and more.

Users receive veMKL tokens according to the following formula.

• veMKL tokens decrease linearly every epoch as the due date approaches, but users can always extend their lock-up period during this time.
• For instance, if Alice stakes 100 MKL tokens with a 26 week lockup period, she will receive 50 veMKL tokens. In contrast, if Adam stakes 100 MKL tokens with a 52 week lockup period, he will receive 100 veMKL tokens. After 6 months, without any extension, Alice will have 0 veMKL tokens, while Adam will have 50 veMKL tokens remaining.

There will be additional features of veMKL such as boosted referral rebates, exclusive benefits for trading seasons, and more. We will provide detailed explanations as we implement them after the TGE sequence concludes.

Genesis Staking Highlights

Staking Period: July 25th to September 5th

Participation: Stake and lock up MKL for up to 1 year. Minimum lockup will be Sep 19th or later, which means the earliest unlock date will be Sep 20th (6 weeks for day 1 participants, 2 weeks for those joining on Sep 5th).

Target Audience: Existing users looking to secure MKL positions while earning real yield from the protocol.

Rewards:

1. 50% of weekly governance fund revenue (remaining 50% is allocated to the governance treasury, which currently functions as both an emergency insurance fund and a source of protocol-owned liquidity.)
2. Genesis Reward Pool

• Genesis Rewards will be distributed on September 20th
• The governance fund portion of protocol revenue from June (up to $200,000) will be dedicated to the Genesis Reward Pool, rewarding Genesis Stakers for their early contributions to stabilizing token velocity during the critical price discovery phase.
• To optimize reward distribution, a tiered allocation model will be implemented based on the veMKL supply. Initially, $50,000 will be provided until 1% of the veMKL supply is reached. For every additional 0.1% increase in total veMKL supply (based on the highest veMKL supply level achieved), the reward will increase by $5,000, up to the maximum allocation of $200,000.

Genesis Staking v.s. Post TGE Staking:

• Genesis Incentives: Genesis Staking offers enhanced incentives, including up to $200,000 in additional rewards from the governance fund portion of June’s protocol revenue, dedicated to early contributors.
• Lockup Period: The minimum lockup for Genesis Staking is September 19th, so 6 weeks for day 1 participants and 2 weeks for those joining on September 5th. This means that the earliest unlock date will be September 20th.

These distinctions ensure that early contributors are appropriately rewarded, establishing a robust foundation for the protocol’s long-term success.

How to Participate in Genesis Staking

Participating in Genesis Staking is straightforward:

Stage 1 — The Genesis Staking Period

Preparation: Ensure you have preMKL tokens. Participate in Merkle Trade seasons. Currently, S15: “Degen Racing Royal” (July 11–25).

Stake preMKL Tokens: Visit the Merkle Trade platform, navigate to the ‘MKL Staking’ tab under the ‘Earn’ section, and stake your preMKL tokens for your chosen lockup period.

Earn veMKL Tokens: Receive veMKL tokens based on the amount staked and the lockup duration.

• The longer the lockup period (up to 1 year), the more veMKL tokens you will receive for the staked amount.
• veMKL tokens gradually decay as the due date approaches.

Stage 2 — Token Launch and Rewards Distribution

Weekly Revenue Share: Earn your share of 50% of weekly governance fund revenue based on your veMKL holdings.

Genesis Reward Pool: Earn your share of the Genesis Reward Pool based on your veMKL holdings.

Stage 3 — Post-Staking Vesting

Withdrawal: Users can withdraw their original MKL tokens, converted from preMKL tokens, once the lockup period expires. At this point, their veMKL tokens will have decayed to zero.

Who Can Participate?

Anyone who participated in trading seasons S0-S18 or the pre-TGE MKLP incentive program is eligible to take part in Genesis Staking. By staking preMKL, users earn veMKL tokens, enabling them to receive protocol revenue and have access to other exclusive benefits later on. This model ensures that participants are incentivized to support the protocol’s long-term growth.

Stay Updated

Genesis Staking is a crucial phase in Merkle Trade’s TGE sequence, providing an excellent opportunity for early users to secure MKL positions while earning real yield from the protocol. Details of the Liquid Bootstrapping Auction (LBA), starting on August 29th, will be released in the coming weeks.

Whether you are a long-term holder seeking passive income or an MKL enthusiast aiming to maximize holdings, the Merkle Trade TGE Sequence provides a pathway for you. Make informed decisions and participate actively in the Merkle Trade ecosystem to maximize your MKL holdings and contributions.

To stay updated on all developments, follow Merkle Trade on Twitter and join our Discord. For detailed information, visit our website and review our documentation.

Website: https://merkle.trade

Documentation: https://docs.merkle.trade

Discord: https://discord.gg/uV2A5nSpng

Twitter: https://twitter.com/Merkle_Trade

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Disclaimer

The content above is neither a recommendation for investment and trading strategies nor does it constitute an investment offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.

Any forward-looking statement made in this article is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, the team undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.