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$META Tokenomics

The $META token ensures there is a clear alignment of incentives between users, token holders, stakers, the developers and the broad community, so that meta-pool can continue to grow in a sustainable and productive manner for the benefit of all the NEAR community. It is therefore crucial that the $META token have strong fundamental value accrual structures in place which build value over time.

Overview:

Max Supply 1,000,000,000

Emission Period: 2 years

Weekly Emission Reduction: -4% (dynamic)

Early Adopters % of Supply: 5%, 50m

Founders % of Supply: 25%, 250m

Founder Lockup: Lockup over 2 years with linear release.

Treasury % of Supply: 20%, 200m

Community & Ecosystem % of Supply: 50%, 500m (Stakers, Liquidity Providers, Users)

Token Type: NEP-141

Principles:

  • Community reward emissions are split between Stakers, Liquidity Providers, and Users. The rewards multipliers may change over time to reach target Weekly Emission Reduction.
  • 70% of fees on Liquid Unstakes go to Liquidity Providers, 25% to the Treasury, and 5% to operator & developers.
  • 80% of fees on Stake Loans go to Stakers, 15% to the Treasury, and 5% to operator & developers.
  • $META tokens will become the governance tokens on Phase II
  • The Treasury should be sustainable and have enough supply to pay for top talent.
  • 2 year emission schedule with 4% weekly reduction. Early risk takers rewarded and new supply entering circulation reduces over time and helps build long term value given static or growing buyback demand.

Buyback and burn:

  1. The DAO can vote to use treasury funds on $META buyback and burning. The meta-pool will provide a buyback swap pool fueled by treasury's stNEAR fees.
  2. The meta-pool will charge fees for services with 70% of fees going to stakers, 25% to treasury and 5% to operator & developers.

Value Accrual

It is essential to the success of the project that the meta-pool actually generates revenue and adds value to the token. Therefore there are several value accrual mechanisms for the token itself which will further generate interest and incentives in a positive feedback loop. The below is a list of value accrual mechanics that will be implemented on the meta-pool platform:

Transaction fees: The most basic and simple value accrual is the fee the contract takes on on certain interactions (Liquid Unstaking, Rewards Distribution, Stake Loans). The majority of this fee revenue goes to Stakers and Liquidity Providers, with the remaining being sent to the treasury.

Buyback and distribute: The core value accrual mechanic is buyback of $META tokens from revenue generated by transaction fees in the protocol. This gives a native APY for staking the $META token and aligns incentives of token holders with the success of the meta-pool.

Reducing supply emission rate: Supply emissions should reduce over time without any large cliffs The optimal scenario is a gradual reduction in new emissions over time. For the meta-pool, this emission reduction target will be 4% weekly of the community and ecosystem reserve. With a steady or increasing demand and a falling emission rate there reaches an inflection point where buybacks volume is greater than new emissions creating NET positive buy pressure on the $META token.

Staking Loans: A core part of the meta-pool is being an lender of stake to struggling validators about to fall from the seat-price cliff. The objective is to preserve decentralization and damp seat-price increases. Fees collected for these services will flow back to Stakers and $META holders via the treasury.

Lockups: Incentivizing users to take coins off the market is one way to reduce potential sell pressure and ensure given flat or growing demand that there is NET positive buy pressure. The meta-pool intends to implement lockup LP pools where tokens will be locked for a specified amount of time and be able to share in a higher rate of emissions or staking revenue compared with staking pools which allow immediate withdrawal.

Governance:

The meta-pool will initially implement a Sputnik V2 DAO with a council integrated by the core team, early adopters, members from the NEAR Team and the NEAR Foundation. The DAO will guide the direction of the project allowing upgrades while keeping the funds safe. There will be no governance functions on launch, on phase II the DAO will evolve into a community based decision process, involving $META token holders in the decision making process once the $META token is established.

Conclusion:

This is the initial token mechanics for the $META token and may be subject to change. The meta-pool DAO objectives will be focused on value accrual for the platform with our core principle being that the meta-pool should be the platform the majority uses to Tokenize their stake while helping decentralization for the NEAR community.

$META Token Launch Mechanics - Initial Distribution

May 25th 19:00 UTC — A $META/NEAR fixed-price pool will be deployed on ref.finance

This pool will be tradable immediately, Initial liquidity will be 10,000 NEAR and 1,000,000 $META tokens at a fixed price of 0.01 NEAR.

If the pool is emptied, a new sell-only, fixed price pool will be established with initial liquidity 100,000 NEAR and 4,000,000 $META tokens at a linear-increasing price of 0.02-0.04 NEAR.

If the pool is emptied, a third, sell-only, fixed price pool will be established with initial liquidity 400,000 NEAR and 8,000,000 $META tokens at a linear-increasing price of 0.05-0.09 NEAR.

One month after launch, liquidity will be provided for the NEAR/$META pair swap pool on ref.finance to guarantee liquidity for a free token trade.

We believe this is the ‘fairest’ launch mechanic that is simple and open to everyone. No caps, no limits, no lists, just a simple launch via AMMs like most DeFi projects for the last year. Coins available for everyone.

Note: This document and the mechanism is heavily inspired by the STEP Token launch mechanics