37.5% (15M) of the total tokens are removed from future releases until new synthetic and derivatives products are launched. The general emission of MTRG will be set to 5% per year.
We’ve made some important changes to the tokenomics of the Meter governance token, MTRG, in preparation for the impending launch of staking and on-chain auctions.
First, we have updated the token distribution of MTRG to budget for new initiatives we’re working on.
The primary change comes from the original allocation of 30M tokens to the Team, Equity Investors, and Advisors. As you can see in the table below, we have carved out 5M tokens for future fundraising and 15M tokens for future products (such as collateral for synthetic assets), and the development of ecosystems around these products. The 15M tokens are effectively removed from the future circulation until new products are launched.
Here is the updated distribution:
Secondly, we have set the initial emission rate of MTRG to 5% per year, starting from the current total supply of 40M tokens. This will strike a balance of incentivizing validators and allowing MTRG to better hold its value. This emission rate can be changed through community governance in the future.
Here’s a chart that summarizes the current MTRG monthly release schedule and the circulating supply each month:
Note that this chart does not include the allocations for:
- Reserved for future products and ecosystem (15M) — we do not know when those tokens will be released yet.
- Network emission (5% per year) — this may change through community governance.
Finally, 100% of the MTR collected from the MTRG on-chain auctions will be distributed to the validators as block reward initially (the original tokenomics paper noted that 60% goes to the validators and 40% is kept in the system reserve).
Due to the recent surge in Bitcoin price, the short term opportunity cost for miners has risen to around $2 per MTR (shown as MTR cost parity in explorer Meter | PoW), although this number is expected to go down in the long run. Adjusting the ratio of validator block rewards and system reserve is one of the monetary tools available in the Meter system. This percentage is also subject to change by community governance.
Thanks for your support, and we can’t wait to launch open staking and on-chain auctions soon!
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Originally published at https://www.meter.io on February 10, 2021.