January 11, 2021. Tokenomics by @wealthineer @darkroamer @abunft
Table of Contents
- Introduction
- Intent
- Tokenomics
- Roadmap
- FAQ
- Closing
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1. Introduction
~ Before starting I want to really thank @wealthineer for writing out the vast majority of the whitepaper as well as creating the smart contract. Without him the development of this project could not have happened — Abu~
Introducing our MTTM-MA tokens, the first step to creating a truly decentralized and functioning ecosystem for MTTM managers and contributors, in the coming weeks we will be airdropping tokens to all current managers that have sent in funds to our treasury.
Do note that for this phase (Mid Jan 2022) We are going to be utilizing the ROPSTEN testnet in order to avoid Gas Fees on the network. The aim is to get feedback from managers and experiment on token functionality. In future, we will like to move to Mainnet or another L2 (this will be for community to decide)
Do note that the tokens are not able to be listed anywhere and have no value beyond the governance utility. They do not represent a security/currency or dividend of any sort.
The MTTM-MA token represents voting power and share of the MTTM treasury for the Manager Association. The token is issued monthly depending on the contribution of each manager to the treasury.
2. Intent
When we initially started the Manager Associations, we had always wanted to build a decentralized system of tokens that would truly allow each manager to own their piece of the MTTM ecosystem. The token also helps streamline the association operations, namely by;
- More accurately tracking governance and voting power
- Enabling proposals and suggestions to be raised via Snapshot.org
- Enabling contributions by members who may not be able to manage scholarship programs
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3. Tokenomics
The amount of tokens each manager receives every month depends on the current value of the treasury, the current token outstanding, the value of the total contribution this month and the contribution of the individual manager.
This is how the token distribution each month is calculated:
At the start of each contribution period, a snapshot is taken of all the prices for the assets in the treasury and the manager contributions. Then the treasury value in $USD is calculated. The same is done for the total contribution of all managers as well.
The formula for the amount of tokens distributed in a month is:
For individuals:
With this setup, this method of distribution accounts for appreciation and depreciation of the treasury and does not dilute the share of the current holders.
People who are paying the monthly contribution late will be excluded from that month’s token drop. Cutoff date will be announced each month
For the initial Float of MTTM-MA Tokens, we are starting with 10,000 tokens and distributing to the initial core team who placed the first contribution of SLP/WETH into the treasury and built the infrastructure to house it.
(Month 0)
This works out to:
The initial drop will calculate how the drops would have been based on past price data. Thereafter tokens will be issued monthly using this base 10,000 MTTM-MA tokens as a starting point
Voting power
Proposals can be put to voting by the members of the MTTM core team. The voting period will be announced together with the proposal. Each member has an equal amount of votes as MTTM-MA tokens are held in the voting wallet. The core team executes on the voting results but has a veto right. As a tool to collect the votes snapshot.org will be used.
4. Roadmap
What’s next? MTTM-MA tokens are our first foray into developing Phase 1 of the MTTM Ecosystem. Our goal is to create a sustainable and strong community for good within play 2 earn and Web3. Focusing on education, empowerment and structure.
Just to share some of the items coming in the pipeline
- Deploying our MTTM-MA governance token (Phase 1: Ropsten | Phase2: Mainnet or L2)
- Future project partnerships and collaborations with community (Q1 + ongoing)
- NFTs & DAOs for partners to get contributors to get involved outside of the Manager Association (TBA — likely Q2 onwards)
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5. FAQ
- Why start at month 0 to distribute tokens? Won’t core members control a large supply?
- At the beginning of the treasury’s lifespan, we felt it was important for MTTM core to have a strong presence within the initial governance in order to steer the vision of the project. As our membership and contributions amount grow however, the contributions will start to level out Core governance so that voting power is more evenly distributed. We are currently doing the final calculations up till Dec 2021, already we are starting to see the distribution start to level off - Will I be able to sell this token or transfer it for ETH or USD?
- No, the MTTM-MA token is not a security or tradeable asset, its only use case is as a token of governance for Proposals and Initiatives set out by the Managers’ Association. By design the token cannot be transferred between addresses and therefore not able to be moved to dexes - Will there be future benefits for holders?
- The MTTM core team is working hard to bring value to all members in our communities and web3, however ownership of this token does not represent a promise or contractual obligation to provide additional utility or benefit to holders - Can I purchase more MTTM-MA tokens to have more governance?
- This is something we are considering and will want to bring to a snapshot vote in the coming weeks. We currently have the capabilities to do so on the smart contract - Why did we deploy on Ropsten instead of Mainnet ETH or L2?
- As this is the first smart contract and governance token, we want to be able to execute and iterate on a network that has low gas, right now all development and costs are borne by Core team, so with limited funds this is the best option until the treasury is ready to stand on its own feet. We would like to move into Mainnet or L2 down the line but it will depend on network conditions and community consensus - How Do I make proposals / vote? Check Balance on Ropsten Etc
- We will be creating resources (Videos and Articles) for all members to be able to learn and utilize the Ropsten, Snapshot.org and MTTM-MA ecosystem - Why distribute tokens depending on % of total treasury every month? Isn’t it easier to just split with a whole number?
- As the Association starts to scale, we wanted to create a governance system that was detached from the daily volatility of the crypto market. With our current system, the voting power of an individual in the association fluctuates with the different pairings of tokens in the pool (AXS/SLP/ETH) This is not ideal as members may have different voting power on different days, depending on how the market is performing. This method creates a fairer distribution model where the tokens are distributed according to the $USD contributions. - Why no max supply?
- We do not want to limit ourselves with a fixed token since as the community scales, we may need to mint more to accommodate the governance demand - Why does core team have a veto right?
- At the early stages of the projects lifespan, we want to be able to ensure that proposals and initiatives passed are still reflective to the aligned values of the MTTM core team and mission. As we grow however, we hope to promote ambassadors or “Council” members that we can share this stewardship with and further decentralize the treasury. However, depending on how the community decides to move, full smart contract execution may not be possible as the treasury may be split across different games/projects and wallets - How will our tokens work with withdrawals?
- Under this system, all MTTM-MA Tokens will be pegged to the total treasury contributions. At the point of withdrawal, we will calculate the total value of your tokens that can then be redeemed for that stake in the treasury. Do note that during this experimental phase, we will still be manually tracking the Treasury on sheets so that in the event the token contract does not work, we will fall back on that as a failsafe. The intent of this system is to create a fairer distribution of ownership that is insulated from volatility from SLP/AXS. Do note that this means that your token redemption values may fluctuate. The Core team reserves the right to decide on the final token payout of the withdrawal. In the event a large withdrawal is in effect that may cause a liquidation of a asset, the team may require the withdrawer to sell his/her tokens to another member - How will NFT Assets prices be valued in the treasury?
- This is something we would like to discuss further with our community and will be decided via snapshot vote once we purchase our first NFT asset.
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6. Closing
As we move into a new chapter for the Manager Association, on behalf of the core team, we would truly like to thank everyone for their support and trust in the team. 2022 is a year of reorganization and structure and as MTTM solidifies itself as a premiere brand in the space, there is a lot of exciting collaborative projects that will really start to take shape. As our earliest adopters, we can assure you that it is going to be one hell of a ride.
MTTM to the Moon!
- Abu
Links:
MTTM-MA Token Contract: https://ropsten.etherscan.io/address/0x4DFD6fd7093FFD589ea825B23a5E5f0A0eE21759#writeContract
