TL;DR
- The Emissions Controller will move MTA emissions from a manual weekly distribution method to be completely on-chain instead.
- MTA stakers will vote for the distribution of MTA rewards to designated recipient contracts.
- The objective of the Emissions Controller is to further decentralise mStable and hand over control to the MTA token over the mStable ecosystem.
Emissions Controller
mStable is launching the Emissions Controller - it represents a significant step forward in the protocol and the decentralisation of mStable. This will move the manual weekly distribution of MTA emissions to an on-chain Emissions Controller that determines the distribution of MTA to vaults and other recipient contracts via votes on dials by MTA stakers. Dials are representations of voting destinations within the Emissions Controller contract.
MTA stakers are incentivized to allocate the rewards towards the dials that yield the highest return in order to maximize protocol revenue. By maximising the protocol revenue, MTA stakers in turn maximise their own staking return. All earned governance fees (currently 10% of the protocol revenue) will be used to buyback MTA and distribute to stakers.
Additionally, the topline MTA emission schedule will be fully controlled by the Emissions Controller smart contracts going forward: 30 Million MTA will be distributed over the next 6 years (312 epochs) weekly starting from the first distribution on the 16th December 2021. This marks a significant step up for all stakeholders with exposure to MTA since this means a predictable emission of MTA is locked in and a trustless distribution.
How does it work?
The Emissions controller will utilise dials to determine the amount of MTA which are sent to a dial’s recipient contract. A dial recipient can be any contract that can either receive MTA tokens or can be notified of the number of received rewards so the contract can account for it. Dials can be added and removed via the normal governance process of proposal and Snapshot vote. Votes for dials come from the voting power in the recently deployed Staking V2 contracts. All the current Vaults in mStable plus additional contracts are represented as dials and can be voted upon.
MTA stakers can vote on the dials with their voting power, coming either from staking or delegation. Voting can be done at any time but requires an on-chain transaction and the change will only apply to the next epoch (One epoch equals 1 Week). The votes remains valid throughout and Stakers don’t have to vote each week unless they want to change the allocation. In case the voting power increases or decreases (e.g. from a quest or delegation) the amount of votes will adapt based on the set weights.
The dials for the staking contracts are capped at 10% of the emissions. This is done in order to avoid MTA Stakers allocating rewards disproportionally to themselves and to incentivise allocating the emissions towards dials that increase the protocol revenue.
Initially, all the existing contracts that receive MTA rewards will be open up for voting. The first distribution will occur on the 16th of December and continue on a weekly basis.
Get started!
If you are already staking MTA, then head over to Dials page in our staking app, select which pool should receive rewards and submit the transaction. Also check out our Guide on how to use the Emissions Controller as a Staker and vote on dials. Congratulations, you are now in control of the emissions of MTA at mStable.
