Inspired by our friends at Illuvium and its $ILV token, we decided to follow a similar structure of calculation for the liquidity mining rewards. This model perfectly rewards long-term stakers since there is a time-weighted element for calculating the rewards. After the launch, all token holders (except locked tokens) are able to stake the tokens within two different vaults:
- MC → single-sided staking pool; this pool will receive 20% of the liquidity mining rewards
- MC/ETH LP → liquidity position of 50% MC and 50% ETH; this pool will receive 80% of the liquidity mining rewards
When staking tokens, stakers can choose a certain lockup, ranging from 0 (flexible) to 12 months (locked). The longer MC tokens are locked up, the higher the respective share of the pool and, therefore, the higher the rewards.
- Staker 1 - doesn't lock the underlying tokens and therefore gets a weight of 1
- Staker 2 - locks the MC tokens for 6 months and therefore gets a weight of 1.5
- Staker 3 - locks the MC tokens for 9 months and therefore gets a weight of 1.75
- Staker 4 - locks the MC tokens for 12 months and therefore gets a weight of 2
Initially, 10% of the total supply will be allocated as liquidity rewards. This equates to 100,000,000 MC tokens being equally distributed and rewarded based on the calculations shared above.