Learn about Metavault DAO's updated Tokenomics.
Metavault DAO's token, MVD, is a tradable and exchangeable token that can be converted into gMVD to earn profits and gain governance rights. The MVD initial supply was 100,000 tokens without any whitelist, presale or pre-allocation.
- 10,000 tokens for the team from which 1000 tokens were airdropped to the ETH migration to stakers and the rest being staked.
- 90,000 tokens as initial MVD/DAI LP liquidity on SpookySwap.
With gMVD, users can stake their tokens to earn 50% of Metavault DAO VC profits, while having a say in future strategies and development.
However, gMVD cannot be traded or transferred, and users must redeem them as MVD in order to do so. This redemption process involves vesting, which can be customized by the user. The longer the vesting duration, the higher the conversion ratio, with a minimum ratio of 1:0.5 for 15-day vesting and a maximum ratio of 1:1 for 6-month vesting.
This model allows for better control of the token supply and potential sell pressure. To further regulate the selling pressure, a bonding model has been implemented. The Risk Free Value (RFV) of the MVD treasury is taken into account to avoid under or overpricing of MVD. The objective is to maintain a similar value between the MVD token and its treasury holdings.
To achieve this, a bonding mechanism has been put in place by Bond Protocol. When MVD is trading above its treasury value, bonds are incentivized to generate treasury inflow and increase the supply that will be used to invest more into the actual strategies and generate more revenue. The Bond Control Variable (BCV) controls the price of bonds and the inflation of the protocol.
If MVD is trading below its treasury value, Metavault will buy back and burn the token to reduce the circulating supply and increase the MVD value compared to the treasury. This combination of the GRAIL model and the bonding/buyback and burn system allows for continuous buying pressure while easily managing selling with the gMVD model.
Overall, the MVD Tokenomics have been designed to provide a stable and sustainable investment option, while allowing users to actively participate in the governance and profit-sharing of the DAO.