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mStable

mStable’s Stakeholders Commit to Staking

mStable is built as an open and public piece of financial infrastructure. mStable’s contracts are non-custodial, its code open-source, and its governance decentralised. mStable’s governance goes through a process where consensus is reached in progressively concrete stages. Proposals and ideas are surfaced on the discord or our public forum, and are finalised by on chain signalling by MTA holders. With Staking V2, MTA holders will have even more power over their protocol and voting will be on-chain and binding.

The progression of increasingly binding consensus can be seen below:

In traditional startups, key stakeholders — such as investors — might have a great deal of influence but they generally do not have the power to propose and directly vote on changes to that company. For stakeholders in decentralised protocols like mStable, there is an avenue for this kind of activism.

As flagged in this post, approximately 2,800,000 MTA will be emitted in a lump sum portion this Friday, 16 October 2020. This amount of MTA represents the first 3 months of vesting for c. 70 individuals or entities, encompassing core team, investors and institutional liquidity providers.

Each one of these people contributed an immense amount of time, dedication, and resources to making mStable what it is today. They have funded mStable’s development, built the protocol, supported our community and helped us grow.

Their contributions don’t stop now they have some MTA. In fact, as they receive this governance token, they become even more significant to the protocol and its development.

To that end, I’m excited to let our community know that these stakeholders have voluntarily offered to commit to staking a portion of the initial tokens they receive in order to accelerate the decentralisation of the mStable protocol and contribute to mStable’s governance.

Below is a quick summary of my and their commitments in reference to this first tranche of MTA, being emitted this Friday:

  • Personally, I made the commitment in this post to move my first portion of MTA to the end of my vesting period. I will additionally be staking 100% of the MTA I receive as part of my team allocation in the coming 6 months, at a minimum. I will only not stake if my governance power becomes too great relative to the community
  • Core team have committed to staking an average of c. 78% of tokens for an average period of c. 7.5 months
  • Investors have committed to staking an average of c. 55% of their tokens for an average of c. 3.3 months
  • Institutional liquidity providers have committed to staking c. 50% of their tokens for an average period of c. 2.9 months

Please note that these are voluntary commitments in relation to the first tranche of MTA being released tomorrow (which in total sums to c. 2.8 m MTA). As a core team, we have no control over these tokens once they have been sent to their recipients. These commitments are based on trust.

This means that over 60% of the first tranche of tokens — about 1,700,000 — have been committed to being voluntarily staked for an average time of c. 4.5 months by our soon to be MTA Governors.

We are humbled by this signal of support and excited to expand the mStable community of governors so substantially.

The participants themselves are some of the smartest minds in crypto, including mStable’s investors such as DACM, Three Arrows Capital, Cluster Capital and DeFiance Capital.

We couldn’t be more happy to have these and other big brains directly contribute to the hive mind that will be mStable’s on-chain governance.

So what will MTA Governors be voting on? Some upcoming proposals will likely include:

  • mUSD on Curve: decisions about possible EARN incentives for the mUSD Meta pool on Curve.
  • AMM: a stealth research and development project led by Onur Solmaz, an applied mathematician who is working as mStable Head of Research. The core team are incredibly excited to share more information about this possible proposal in the coming weeks.
  • Additional stablecoins: such as sUSD, BUSD, Paxos
  • Addition of new mAssets: such as mBTC
  • Gas reductions: proposal that would see significant reduction in gas, especially for small deposits, redemptions and swaps
  • Staking V2: re-collateralisation proposal
  • Composable SAVE: proposal to create a new type of perpetual yield token that would make the SAVE contract composable across all of DeFi

Thanks to all mStable community members and MTA Governors for your work in governing mStable.

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