End of the Week #2

A summary of all the highlighted events from Jan 25 to Jan 31.

Hello everyone, we’re back with a new release for the end of the week edition, this time all the highlighted events are coming directly from our community with tons of good news and opportunities to do more with your MIC.

Summary

  • MIC-USDT Community vault

  • Development Bounty Manager

  • Termination of MIB issuance

  • Seven Wonders of MITHCash

MIC-USDT Community Vault

The first community vault made entirely by the community is live since last Wednesday, and you can earn up to 85% of the $MIS rewards with the benefits of being compounded automatically by the vault contract.

Currently, this vault takes a 15% fee from the rewards and send it to the MDF contract, so it can be reinvested back into the community and pay the developers from the community to maintain it.

What is the advantage of staking your LP tokens?

  • Pay fewer fees to stake in the community vault than in external vaults.

  • Support the community overall with the fees that you’re paying.

  • A symbiotic vault that generates more demand for $MIS helping the general ecosystem.

How are these fees spend?

  • 12% of $MIS rewards are sent to a staking pool that will reward $MIS holders + accumulate $SUSHI rewards in the process.

  • 3% is used to pay the developers to maintain the vault.

Development Bounty Manager

We are excited to announce that purplezky will become our development bounty manager for the community.

He was the first in 2011 to set up sms2bitcoin.com, sold hundreds of Bitcoin for less than a dollar. He has a serious professional obsession with macro and micro mechanisms involving seigniorages, and in his free time enjoys doing code reviews for vault strategies at Pickle.

As Bounty Manager, his roles and responsibilities are:

  • Manage the process of the roll-out of V2 to ensure timely delivery

  • Coordinate between bounty hunters, core devs, and project operations

  • Code reviews and manage PR process

Bounty Manager is able to participate in the bounty hunts, in addition to his role as Bounty Manager which is entitled to 10% of the total bounty upon successful delivery and completion.

Termination of MIB issuance

Since today at 2:00 UTC, all MIB issuance is been terminated.

This was disclosed on the 5th day of the seven wonders of MITHCash V2 and in preparation for the incoming launch of MICV2, we are looking to honor all the debt obligated to MIB holders since the first contraction of the MITHCash protocol.

MIB holders will be able to exchange all their MIBs for MICV2 at a 1:1 ratio, as soon as MICV2 is launched.

Seven Wonders of MITHCash

We disclosed all the seven improvements that MITHCash V2 will bring to the protocol and the many benefits that will bring to the community.

1st wonder: A new $MIS for a new era

$MIS's tokens will receive a radical change starting with a 500K total supply, which means a reduction of almost 50% of the current total supply. $MIS's holders will have the chance to exchange their MISV1 to MISV2 at a rate of 1:1.

That also means $MIS emissions are going to be reduced almost 77% after migration, at current emissions the $MIS distribution was set to release 350K $MIS tokens now is going to be set at 150K.

2nd wonder: Time-Weighted Boardroom Rewards

For MICV2 all the $MIS staked into the boardroom is subject to a timer, $MIS staked earlier is worth more than $MIS staked later, and will receive more rewards when the time comes.

We hope this improvement can help to reduce the incentives to stake in the last minute of each epoch with a high volume of tokens and rewards early stakers the most.

3rd wonder: Community Vaults

We want to encourage the community to come up with strategies that help the general ecosystem and other community members.

For MIC V2 all community vaults will benefit the community in general, be symbiotic, and will not follow parasitic strategies like with current external vaults.

If you have a strategy in mind, or you are willing to develop a community vault for the protocol, we have prepared a set of rules and rewards to support your proposal.

Rules to be accepted as a community vault:

  • All fees are capped to 15% in total and most of the fees have to be reinvested in the community in some way.

  • The developers can take up to 20% of the total fees as compensation to develop and maintain it.

  • As the strategist (no code), you can take up to 5% of the total fees if the team or community finds a developer to code the vault for you.

For more details or questions you can review our community vaults channel in discord.

4th wonder: Migration, Rebase, and MIB redemption

We are migrating the MIC-USDT pool to Curve Finance.

In order to successfully add MICV2 to the stableswap of Curve, we are looking to conduct a one-off rebase of MIC, while maintaining the value of MICV1 holders.

This rebase will happen during the migration to MIC V2, so the initial starting ratio in the Stableswap liquidity pool will be 1:1 between USDT and MICV2.

After the rebase completion, the total USD value of everyone’s MIC will remain the same and only the number of tokens they hold will change.

Finally, MIB redemption will become available for MIBV1 Holders at a rate of 1:1 between MIB and MICV2.

5th wonder: Termination of MIB issuance

As previously disclosed all the Mithril Bonds (MIB) will be redeemable at a rate of 1:1 between MIB and MICV2, as soon as the migration to MIC V2 is done.

Since today at 2:00 UTC, all MIB issuance is been terminated.

6th wonder: MITHCash Governance Token (MIG)

We are planning to launch a separate token for governance purposes.

Currently, we have MIC (stablecoin), MIB (bond token), and MIS (share token). Today if we were to reward people for buying MIC under peg, we would pay in MIC, MIB, or MIS. This though would cause sell-pressure on that token being used as a reward, which is counter-productive.

MIG is a governance token that captures the full value of the MITH Cash monetary system. It will be distributed to community members who have participated in our project as well as through farming the MIG token.

We will have a fair launch of MIG. We will distribute MIG directly for past participation; people can also farm it by providing liquidity to a MIG trading pair. As for allocation some will go to the community, and as funding for the project’s efforts to stabilize MIC.

This part is still under review, and we are currently discussing this proposal with the community.

7th wonder: Value Reallocation from Sub-$1 MIC Sales to MIS holders

After the rebase to kick-start MIC V2 concludes, all MIC V2 will start trading at the equivalent of one USDT.

This means all existing holders will not be subject to value reallocation at the beginning. — However, once speculators begin to speculate on price while MIC V2 is below peg, value reallocation will occur to ensure this is highly unprofitable.

Value Reallocation: Removal

MIC V2 sales under 1 USDT will be charged a fee according to the formula:

Fee = 1 — price²

If the price of MIC V2 is 0.5 USDT and someone sells 100,000 MIC:

Fee rate = (1–0.5²) = 75%

So the person in question will receive 12,500 USDT after fees.

100,000 * (1–0.75) * 0.5 = 12,500

So the fee proceeds are 87,500 MIC, or 85% of the tokens traded.

Value Reallocation: Accretion

The MIC V2 collected as fees will be distributed as follows:

  • 25% to MIS V2 staked in the Boardroom

  • 75% to the MITHCash Stabilization Fund (MSF).

All the spending of MSF will be subject to a governance vote, so the community can decide what is the best strategy to reallocate all the value accrued from the fees in order to keep MIC at the peg.

That’s all, see you next week :)

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