Magma Points
Last updated
Last updated
A Magma points program, Magma Points, will be rolled out to reward participation and incentivize users who engage with Magma and the Monad ecosystem. Users will be rewarded based on several protocol actions, which will be announced at a later point in time.
A broader distribution to community members will emphasize equitable token distribution to the Magma community and .
Every 30 days after the launch of Magma, a snapshot will be taken of the top 20 projects in the Monad ecosystem by Total Value Locked (TVL) and total Gas burned through usage of the protocol smart contracts. Points will be split equally among the winning projects. The total points per snapshot epoch will decline over time, with the majority of points earned occurring over the course of 5 years. This incentivizes early adopters and creates a sustainable model.
Points will be locked for transfer, subject to a 2 year cliff period followed by 2 years of linear vesting. However, all Points will be eligible to be used in governance without any vesting requirement as soon as they are earned. The same right to vote with locked Points does not apply to the team or other tranches of token allocations. Consequently, Magma, "insiders" (team, advisors, future employees, early backers) will hold a minority share of governance voting power.
Magma Points will result in a highly decentralized Liquid Staking DAO owned by the Monad ecosystem, serving as a powerful cryptoeconomic incentive for applications launching on Monad.
The core team behind Magma will hold a minority and continuously decreasing share of protocol governance. The recipients of the Magma Points will collectively control more than twice as much governance voting power as compared to the core team. This chart does not take factor in divestment, which will further reduce the team's control over time.
The points distribution, denoted as AD, is determined using the following expression:
