MTA Emission: Important Update
Please note that the problem that caused this article to be written has now be resolved and some of the details in this post are now out of date. Since publishing this article, our seed investors have opted for a 12 month vesting: a three month cliff with 9 months vesting linearly. Please see this article for an up-to-date emission schedule.
The MTA Community is mStable’s greatest asset and I hope the actions this post outlines prove how much our team and investors are committed to this project and its community over the long-term.
- Unlocked seed tokens on new 3 month lockup: The seed investor tokens that have unlocked in the past 24 hours will be voluntarily locked for 3 months. Note that only seed investor tokens unlocked in the past 24 hours. Team tokens have always been set to unlock 3 months after TGE. Over the next 24 hours, investor tokens will be sent back to the address from which they came, i.e. out of circulation.
- Commitment to transparency: In this post, we detail in full the vesting of all investors and team members. We will also be notifying the community on our channels before any MTA tokens are released into circulation.
- My personal commitment to the community: As I lead this project and am a co-founder, I take full responsibility for what has occurred in the past 24 hours. To signal my personal commitment to the community, I have opted to lengthen my personal three year schedule to approximately three and a half years.
Summary of Events
- The community observed an unexpected unlock of MTA tokens — we understand why this may have come across as unexpected and acknowledge that we should have communicated this more clearly.
To clarify what happened:
- Just under 3.1 million MTA tokens unlocked for seed investors as per their seed agreement. See below for a more detailed description of this investment round.
- Team allocations unlock over 3 years, beginning 3 months after TGE. The mStable team has not profited from or participated in the sale of any of MTA tokens in the last 24 hrs.
- This Twitter thread from Angelo Min gives an accurate breakdown of the movement of the unlocked tokens.
- The majority of MTA sold seems to be from participants of the Mesa auction caused by the uncertainty presented since the seed investor unlock.
- The team has largely been offline during this time because of a time-zone mismatch. We’ll attempt to be more communicative in the coming days to minimise any potential for misinformation, and to keep answering any questions from the community.
Context on the Seed Round
- The team was approached by a group of investors including DeFinance Capital, DACM, and Three Arrows Capital around the launch of the platform. This was at a time when mUSD had fewer than US$1 million minted and as a project, we were not well capitalised.
- As a team, we were also very comfortable with the partial short unlock as the group of investors are very close to the project and are committed for the long-term (some investors have been involved since our angel round in 2019 and are exposed over 26 months post TGE, for example, and there is a great deal of trust among our team and investors).
- As a team, there was not the expectation that mStable would grow as rapidly as it has. I was leading the negotiations and at the time it looked like a mutually fair deal. It meant as a team we could focus squarely on product rather than capital raising.
- For our previous communications, we flagged the amount of MTA that would unlock each quarter. I can see now that the information provided, while accurate, was too high-level and could easily have been interpreted as all of those tokens unlocking at month 3, rather that the cumulative amount unlocking during that quarter.
Granular Vesting Schedule for Investors & Team
- This graph shows the updated vesting schedule for investors and team over the next three years.
- Seed investors that unlocked in the past 24 hours are in the process of sending the tokens back, and will instead receive these tokens at month 3, as this more accurately aligns with community expectation.
- Team, as always, begin vesting their tokens three months after TGE, quarterly for the next 3 years. I have opted to move my vesting to begin 6 months after TGE, quarterly for 3 years, as a display of my commitment to the mStable community. All of this is reflected in the above graph.
- Our previous posts are now being updated with this new, granular vesting schedule so our community knows exactly what is vesting when. Please note that as a few things have changed since their publication, so hold tight for a moment and we will update all docs accordingly. The above graph, however, is current and completely accurate.
- As flagged, the mStable team will also be notifying the community through our channels before any MTA is released into circulation.
What we are doing about it
Action 1 — Seed Investors Voluntarily Locking Tokens for 3 months
The investors in the seed round have voluntarily approached mStable today and made a legally binding commitment to lock their tokens for 3 months — they are excited about the growth prospects of mStable long term. This also aligns with the community’s expectations given our previous public communications.
Action 2 — Commitment to full transparency
Going forward, we will commit to being completely transparent with movements of MTA into circulating supply.
- Today we’re releasing the full schedule of investor + team unlock so the community has full transparency over these vesting schedules.
- Additionally, each time MTA tokens are released publicly, the mStable team will notify the community through our various channels.
Action 3— Personal commitment from me to you
As a signal of my long term commitment to the project and as its lead, I will be lengthening the standard team three year schedule to approximately three and a half years.
As a team, we have noted consistently that bootstrapping a community of MTA Governors is the core pillar of mStable.
We hope that despite our failings in the past 24hrs, the MTA community feel reassured that these actions — investor lockup, commitment to transparency and my personal commitment— confirm that the mStable team and investors are fully committed to our community over the long-term.
We have so many exciting product launches in the pipeline that we can’t wait to share with you. Soon, we’ll be announcing mStable EARN, a hub for all our MTA farming opportunities. We’re also releasing V1 of MTA staking soon, along with a new basket asset with a multi-token reward…all this is even before we get started on mBTC!
To stay updated, please look out on the Announcements channel on our discord for official statements from the team.
As always, we appreciate your support.