Isn’t it ironic how move already has “-ve” in the name?
This article explains the concept of a tokenomics system best known as ve(3,3) applied to MOVE. What does it mean, and how will it work.
In short, the ve(3,3) model was introduced by Andre Cronje in this article. The token model focuses on aligning the interest of long-term supporters with the protocol. As we advance further into metaverses, we should update and innovate to focus on creating that strong bond. Movers 🤝 MoverDAO.
Before we dive deeper into the proposal it is important to mention that the proposal doesn’t suggest a key parameter change: max token supply. Instead, it focuses on introducing new staking logic and structure. Now that it is clear, let’s dive in.
The initial ST (Smart Treasury) model was very hard to understand for new users. You have to reserve MOVE and/or LP tokens to then receive a MOBO token, that can be used to offset gas spending while using the Mover protocol. We created an innovative product, but we failed to find a product/market fit for it. However, this technology is not going anywhere, instead, we will shortly announce a new partner, where we are working together towards the evolution of gasless transactions. With that in mind, the incentive to reserve (stake) MOVE tokens were not connected to the well-being or success of the protocol. A very simple reason why it needs to be changed is to allow for an adequately rewarding mechanism with a focus on active and early users.
Mover has built a series of products, but only now we are starting to combine them all into the product that is finding the above-mentioned product-market fit. In fact, within just a few days of us releasing preliminary information about the Metacard, we already partnered with two projects. With the first to be announced within 72 hours of posting this article.
With that being said, as the protocol will start gaining traction, there has to be a clear motivation for existing Mover users to benefit from our new and exciting path. Hence, the timely MOve(3,3) proposal.
ve — stands for the locked tokens. In other words, rewards accrue only to the long-term users, that are willing to time-lock their token.
(3,3) — stands for the model, where supporters benefit from token emission.
By introducing ve(3,3) model, there will be the following changes:
- Unstaked MOVE will not accrue any rewards
- Unstaked MOVE will not be counted towards governance votes
- Staking MOVE will have several time-locked options. To be exact, there will be three.
Option 1. Locking MOVE for 3 months will provide a 1x boost in the rewards
Option 2. Locking MOVE for 6 months will provide a 2x boost in the rewards
Option 3. Locking MOVE for 1 year will provide a 4x boost in the rewards
- All additional boosts and modifiers will also apply. For example, the Powercard or the LP tokens boost.
Locked MOVE will accrue three types of rewards:
- Rewards from protocol usage: fees include Savings, Savings Plus, and Savings Pro. 50% of all fees accrue in these projects go back to locked MOVE holders.
- Rewards from Metacard usage. 30% of all MOVE used for Metacard services go back to locked MOVE holders. More information on Metacard MOVE fees will be shared in the Metacard announcement article.
- Finally, locked MOVE holders will now receive additional rewards in MOVE.
Since, there is no change in the max total supply for MOVE, which is 9,966,991 the question comes where is the MOVE coming for the emissions? This proposal suggests reserving 50% of the Ops fund to reserve for the 3 years of the MOve(3,3) program. In other words, 220,810 tokens are to be used for additional token emission within 3 years.
Important note. This proposal also suggests creating a safety emissions module. It will work as follows:
- If % (percentage) of the total locked MOVE is < (less) than 25% no emissions to happen.
- If % (percentage) of the total locked MOVE is > (more) than 25%, but < (less) than 50%, only 50% of the maximum emission rate to be activated.
- If (percentage) of the total locked MOVE is > (more) than 65%, then 100% of the maximum emission rate is to be activated.
This safety emissions module will allow the protocol to dynamically regulate emissions rate based on the number of locked tokens.
If the proposal is passed, the Smart Treasury contract will be updated to incorporate the above-suggested changes. Users will have an option to time-lock MOVE tokens, and start accruing rewards.
In not passed
If the proposal doesn’t pass, there will be no changes made.