Tokenomics

Minterest tokenomics

Minterest’s Tokenomics includes a total MNT token supply of 100,000,030 MNT which begin emitting block-by-block upon the launch of the protocol during its Private Launch. The unlocking process is smooth, with no sudden tranches of tokens being released. The Minterest protocol’s tokenomics structure has been designed to align incentives across all stakeholders, with the longevity of the Minterest protocol being top of mind.
Detailed breakdown

Emission Rewards

50,032,400 MNT tokens (50.03%) are allocated over 5 years as the Emission Rewards provided to liquidity providers.

Private Offering

Early supporters will receive 12,501,000 MNT tokens (12.50%) vested block-by-block over 1 year. The Minterest protocol is structured to allow early supporters to easily auto-stake tokens unlocking from the vesting contract into the protocol’s governance processes to immediately generate substantial APY from the Buyback process from the Private Launch.

LBP Distribution

5,000,500 MNT tokens (5.00%) will unlock immediately during the Private Launch for participants of the Minterest LBP.

Business Development

3,000,000 MNT tokens (3.00%) unlock immediately during the Private Launch to enable liquidity provisions for business development across DEXs and CEXs.

Strategic Partners

2,449,250 MNT tokens (2.45%) are allocated to advisors and strategic partners and unlocked block-by-block over 2 years.

Marketing

1,000,000 MNT tokens (1.00%) are allocated for marketing-related activities and unlocked block-by-block over 2 years.

Ecosystem

4,499,800 MNT tokens (4.50%) are allocated for continued growth of the Minterest protocol across a series of possible uses such as grants or partnership development, and unlock block-by-block over 4 years.

Team

21,517,000 MNT tokens (21.52%) are allocated to the team developing the Minterest protocol, and unlock block-by-block over 5 years. Approximately 6,000,000 MNT are allocated to be exclusively staked in the protocol’s governance processes and are not intended to be traded. The intention is instead to use proceeds generated from Minterest’s Buy Back for the continued development and upkeep of the protocol and ensure an alignment of incentives which enables attracting and retaining world-class personnel over the long-term.

Why would someone acquire and hold MNT tokens?

The short answer is because of Minterest’s network effects and how they support MNT value through its buyback processes.
The Minterest protocol captures 100% of the value generated through its activity given it captures interest rate fees, liquidation fees via the protocol’s internal auto-liquidation process i.e. this is not lost to external parties, plus in the future, flash loan fees. The capturing of liquidation fees is significant since no other lending protocol does this. It means Minterest’s value capture is, in a dollar-for-dollar liquidity comparison, more valuable than its peers, and given the sheer quantum of liquidation fees in DeFi, quite possibly significantly more.
The protocol automatically exchanges this captured value for its native MNT token which it distributes to protocol users who participate in protocol governance.
Simplistically, increased supply of liquidity does not guarantee more borrowing, but it does enable it, and more borrowing does not guarantee greater value capture, but it does enable it. The more value captured by the protocol the more able to be spent on its buyback which in turn supports MNT’s value. Why that’s important is because MNT’s value is instrumental in attracting new users and with them more liquidity.
In a snapshot, such a process means Minterest creates a self-supporting network effect, also referred to as a flywheel effect, where new liquidity supports MNT value and MNT value attracts new users, supporting liquidity growth, which further supports MNT value and so on.
If executed professionally, such a mechanism could have a meaningful impact on MNT’s value over the long term.

How does the token work in the early access phase?

The token acts as an exclusive access key for pre-launch investors to participate in liquidity mining of MNT tokens during the protocol’s private launch, other benefits will be announced later.