Hello Mango DAO,
Marinade has recently announced a Token Exchange program in order to decentralize Marinade and share the ownership of the protocol with other ecosystem actors.
It will provide a way for protocols, validators, market makers, DAOs, and individuals to acquire a large amount of MNDE without having to deal with the slippage caused by the low liquidity available on the market for MNDE. Details about this Token Exchange program as well as some data are available in the announcement article released on Medium (https://medium.com/marinade-finance/marinade-announces-ecosystem-token-exchange-program-205a726575aa)
This Token Exchange is also an opportunity to raise the TVL of Marinade by allowing potential participants to stake SOL to mSOL for an additional MNDE allocation.
Through this forum post, Marinade team is inviting the Mango DAO to participate in this Token Exchange program.
Terms can be found on the following Notion page.
First of all, Mango DAO and Marinade share the same passion and dedication to decentralized governance. Both our protocols have shown a commitment to creating functional decentralized organizations built on Solana-native products, and share a common goal of empowering users to take control of the protocols they’re using.
This alignment of values and end goals leads us to think that both Mango DAO and Marinade would hugely benefit from working together, and that having Mango DAO sitting at the table of Marinade governance would be a net positive for its growth and future.
In addition of this, we believe that participating in this Token Exchange Program has a number of benefits for Mango DAO:
Mango DAO could acquire a large part of Marinade ownership, as well as make a bet on Marinade and MNDE growth over the next years. Owning a share of Marinade would give Mango DAO control over the development of current and future Marinade products, its governance, and over its treasury (data related to the treasury can be found in this Medium article, as well as the on-chain data for the treasury, soon to be diversified through the TEP).
Mango DAO would also own a part of Marinade’s revenues streams. You can refer to the Medium article to evaluate the potential growth of Marinade’s revenues and the goals set for the future.
Mango DAO would have the ability to use the soon-to-be-introduced gauges, with their first iteration (Validators gauges, allowing to direct 10% of Marinade stake to specific validators) being planned to be released this week, and linked to the delegation strategy on May 23rd.
Having a considerable influence in the validator gauges can enable Mango DAO an additional stake towards their validator, should the DAO run one.
Even without a Mango DAO validator in place, this MNDE influence on validator gouges and general Marinade governance could be interesting, if and when vote-bribing protocols make their way to Solana. Marinade believes that actively controlling part of the stake will have value beyond validators. Owning influence over validator stake could also prove useful in a number of scenario as the Solana blockchain evolves.
Another set of gauges is currently being discussed on Marinade forum and will soon end up on-chain to allow MNDE holders to direct Liquidity Mining rewards to the protocols of their choice. This is also something in which Mango DAO may be interested to optimize their earnings by directing MNDE to the pools where their treasury is providing liquidities.
Finally, owning MNDE will allow Mango DAO to participate in choosing the executive team that should lead Marinade, giving it power to direct the protocol in the direction they believe is the right one.
It is good to keep in mind that Marinade TVL currently only represents 1.84% of the total SOL staked, leaving a lot of room for growth as mSOL becomes more widely adopted as the best staking option on Solana. We believe that this Token Exchange Program represents a good opportunity to join Marinade DAO as an active actor and help it grow and thrive on Solana, while contributing to making the whole blockchain more decentralized and censorship resistant through its delegation strategy.
Here are some data (as of May 17) that may be relevant for this discussion:
- A TVL of 6.68M SOL, or $362M at current prices
- MNDE Marketcap: $14.4M
- MNDE Fully diluted valuation: $148M
- Monthly revenues of the protocol (for April 2022): 852 mSOL
- Monthly expenses of the protocol (for April 2022): 106k in USDC, 44k in MNDE
- Non-MNDE treasury: $380k
MNDE is currently distributed as such:
- Circulating supply: 97,500,000 (9.75%) / 1,000,000,000
- 1.9% team - 19.4% of the circulating supply
- 7.85% community/liquidity mining - 80.6% of the circulating supply
Finally, in order to give Mango DAO a better overview of what to expect in the future for MNDE, here are the planned emissions for MNDE in the next years. It is important to remind that those emissions are merely a plan as of May 2022, as the DAO holds full ownership of 70% of the MNDE treasury and will be deciding and voting on any changes that might be deemed necessary or beneficial for Marinade and MNDE holders. By participating in the Token Exchange Program, Mango DAO would also secure a seat at this table and help shaping the future of Marinade and its governance token.
The graph above is a visual representation of what can be expected. Let’s develop on the numbers behind this:
Since its inception, Marinade has distributed an average of 1.25M/MNDE per week through the liquidity mining plan (excluding milestone bonuses). A recent proposal on our forum by Gekonn suggest liquidity mining decisions to be handed over to the MNDE holders, managed via gauges. This rate could become a 1M/week basis with a 250k optional addition (which is currently debated on the forum). The proposal has not been voted in yet.
At this rate, it is expected that between 52M and 65M MNDE would be distributed as liquidity mining incentives per year. This number could always be tweaked by the DAO to adapt to any variable change (market situation, MNDE price, etc.)
In Marinade, full time contributors with more than 6 months of active contribution become eligible to a team allocation. This allocation is distributed as NFTs (locked MNDE with an unlocking period of 30-day) and vested over 24 months.
As of April 2022, the total allocations for contributors is 9 312 492 MNDE/month distributed among more than 15 contributors, adding to 220M allocated and emitted over the next 22 months. We can also mention that the team is exploring how to decrease its influence on the governance.
The Token Exchange Program serves the purpose of immediately distributing governance power over Marinade and ownership to ecosystem actors and individuals that would bring their skills, brains and ideas to the DAO and align themselves with Marinade in order to participate to its growth while having direct incentives to do so.
Thanks to this, Marinade can fasten its decentralization process and become community-owned at a faster pace. It also makes sure that interested ecosystem actors get a chance to accumulate MNDE without having to deal with the slippage they could expect using the market. The closed round of the Token Exchange Program will distribute a maximum of 80M MNDE to a number of ecosystem partners that will be publicly displayed.
If you have any follow up questions regarding this proposal, Marinade Chefs will be closely following this thread and you can expect a quick answer here.
In the meantime, we invite you to come take a look at Marinade, the content that we have produced (especially in relation with governance, decentralization and the Token Exchange Program) in our Medium, and join our Discord to engage and discuss with us. The proximity and likeness of our communities will probably make you want us to cook together pretty soon!
Thank you for your time and attention