MGP-19 | Adjust MIMO Token Inflation Distribution on Ethereum & Polygon PoS

Governance Proposal (PGP) Approved PGPs
1

Summary:
This proposal seeks to adjust MIMO token inflation distribution.

Rationale:
Following MGP-14 & MGP-16, MIMO inflation is now distributed as follow:

  • Ethereum: (80% of MIMO incentives)

  • vMIMO holders: 5%

  • Liquidity Incentives: 95%

    • wUSK/paUSD/USDC: 40%
    • wFRK/PAR/EURC: 35%
    • MIMO/wETH: 20%

  • Polygon PoS: (20% of MIMO incentives)

    • vMIMO holders: 5%
    • Liquidity Incentives: 95%
      • wUSK/paUSD/USDC: 40%
      • wFRK/PAR/EURC: 35%
      • MIMO/wETH: 20%

In the meantime, Mimo Labs, a key contributor to the Parallel Protocol has accumulated 550,000 (550k) vlAURA, leading to around 375,000 (375k) USD equivalent (in $BAL & $AURA) inflation redirected to Parallel & KUMA pools. Moreover, the Parallel DAO treasury has currently accumulated 23,000 vlAURA (23k), leading to around 15,000 (15k) USD equivalent (in $BAL & $AURA) inflation redirected to Parallel & KUMA pools. This leads to around 390,000 (390k) USD in incentives for Parallel / KUMA pools without any MIMO inflation required from the protocol.

We then propose to the Parallel DAO to reduce the MIMO inflation dedicated to liquidity incentives by 100%. Below is the rationale behind the proposition:

  • Less selling pressure from liquidity providers farmers
  • Increase protocol net revenues (spending - revenues)
  • Increase MIMO token treasury holdings

We also propose to keep 5% of the total MIMO inflation for vMIMO holders, with 2.5% of total inflation for vMIMO holders on Ethereum, and 2.5% for vMIMO holders on Polygon. It means that total MIMO inflation would be reduced by 95% (inflation itself reduces by 5% each week, currently sitting at around 260k MIMO per week). MIMO not distributed will be send to the DAO treasury on Polygon PoS.

Breakdown of adjusted MIMO tokens inflation distribution: (% of total distribution)

  • Ethereum: 2.5% (of total distribution)
    • vMIMO holders: 2.5%
    • DAO Treasury: 0%
  • Polygon PoS: 97.5% (of total distribution)
    • vMIMO holders: 2.5%
    • DAO Treasury: 95%

Means:

  • Human Resources: Multisig signers will need to execute transactions to adjust MIMO token inflation distribution on the Ethereum and Polygon PoS multisig.
  • Treasury Resources: No cost for the treasury to adjust MIMO token inflation distribution on Ethereum and Polygon PoS.

Technical Implementation:

  • On Ethereum, Parallel DAO multisig will call following smart contracts:
    • MIMODistributor contract:
      • Call ‘_changepayees’ function with these parameters:
        • ‘_payees’ : 0x5Bde160d26937DdFcEA9706D778d6411D5f2a681; 0x741550176fCd0B8a235bF2982ba3ecbE9a25Ab17
        • ‘_shares’ : 250; 9750
    • EthereumDistributor contract:
      • Call ‘_changepayees’ function with these parameters:
        • ‘_payees’ : 0x654645FCeFCe0AEbEB4a988544B4e42ED2963331
        • ‘_shares’ : 10000
    • PolygonDistributor contract:
      • Call ‘_changepayees’ function with these parameters:
        • ‘_payees’ : (Parallel DAO l Mimo Inflation Multisig); 0xF8cDE3E56b72fD0D7bE77604F396A366912e332f
        • ‘_shares’ : 9744; 256

Voting options:

  • For the adjustment
  • Against the adjustment
  • Abstain

Authors: @JeanBrasse from Mimo Labs

Community poll:

  • For the adjustment
  • Against the adjustment
  • Abstain
0 voters
1 Like
2

When are the pools on Ethereum is live? I do not see wFRKPAR/EURC in balancer?

3

vote is live: Snapshot

1 Like
4

The vote has been approved by the DAO, result: Snapshot

1 Like
5

What will the DAO do with the accumulated MIMO tokens that have not been used for bribing ?

6

Hey,
they will stay in the DAO treasury.