The recent community vote on MANTRA's updated tokenomics proposal concluded on October 10th with unanimous approval, paving the way for significant changes as the platform approaches its Mainnet launch. The proposal, which ran from October 3 to October 10, 2024, received near 100% approval from participating voters, indicating strong support for the adjustments aimed at promoting long-term stability and sustainable growth.
Addressing Market Concerns
In recent months, the crypto market has witnessed growing concerns over projects that allow early token unlocks for venture capital investors, leading to potential instability and unsustainable growth patterns. To address these risks, MANTRA has worked closely with its community to introduce a more resilient and strategic approach to governance and tokenomics. This new framework aims to reduce unhealthy market volatility and position MANTRA as a leader in bringing traditional finance (TradFi) onchain through RWA tokenization.
Key Elements of the Tokenomics Update
The approved proposal covers several major areas: token allocations and vesting schedules, inflation rate adjustments, emission schedules, and an incentive program for long-term supporters. Below are the core changes included in the proposal. Here is an overview:
Updated Token Allocations and Vesting
The updated tokenomics structure introduces new vesting and cliff schedules designed to align with long-term growth goals. The most extended vesting periods are reserved for the team and core contributors, signaling a commitment to sustainable development rather than short-term gains. To further support network security, these tokens will initially be staked, with any rewards generated either burned or redistributed to the community, depending on future governance decisions.
For early investors who participated in the Pre-Seed and Seed Rounds, a longer vesting schedule has been implemented to ensure their involvement aligns with MANTRA's long-term vision. Their tokens will also be staked from the start, with accrued rewards following the same vesting schedule as the principal allocations.
Additionally, a portion of the tokens designated for the MANTRA Chain Association Ecosystem (37.7 million $OM) will remain unvested at the time of the Token Generation Event (TGE). These tokens will support initial liquidity provision, builder incentives, and community-focused initiatives from the first day of the Mainnet launch. Programs such as the Chakra Pool, which uses $OM for liquidity incentives, will benefit from this allocation, with more tokens becoming available over time through inflation.
The MANTRA Mainnet Airdrop ("GenDrop")
As part of the new tokenomics, MANTRA announced a 50 million $OM GenDrop to reward active participants and supporters within the ecosystem. The GenDrop aims to incentivize early adopters and engage community members who have contributed to the platform’s growth, including staking $OM, participating in testnets, or holding eligible NFTs.
To provide immediate benefits, 20% of the airdrop allocation will become liquid after a three-month cliff period,while the remaining tokens will vest gradually. This approach encourages engagement with the MANTRA Chain Mainnet during the early stages, allowing participants to earn additional $OM by completing tasks such as onchain quests to earn KARMA.
Fixed Inflation Rate for the First Year
The proposal also simplifies the inflation model by adopting a fixed annual inflation rate of 8% for the first year. Of this, 60% will be dedicated to staking rewards to help secure the network, while the remaining 40% will go toward supporting future initiatives through the MANTRA Chain Association. These initiatives will include providing liquidity incentives to boost the Total Value Locked (TVL), developing public goods for the network, and supporting RWA-focused decentralized applications (dApps).
The community will regularly review the inflation rate, with any potential adjustments occurring no less than once per year, ensuring a balanced approach to long-term network growth.
Emission Schedule Overview
The proposal outlines a detailed emission schedule that reflects the new token allocation and vesting policies. At the time of the Mainnet launch, over 90% of the legacy $OM will already be in circulation, resulting in a circulating supply of approximately 880 million $OM, or about 49.5% of the new total supply at TGE. This approach aims to balance liquidity needs with sustainable growth, providing sufficient circulating supply without focusing solely on increasing the fully diluted valuation (FDV).
Surprise Reward for OM Stakers
In recognition of the community's support, especially those who have actively participated in $OM staking, MANTRA has announced an increase in the maximum rewards allocation for stakers. Initially set at 35%, the rewards pool will now expand to 130%, providing additional incentives for community members who have helped secure the network. Stakers with allocations below 100,000 OM will have rewards vesting over an 18-month period, while those with higher amounts will see vesting extend over 36 months. Any unallocated rewards will vest into the MANTRA Chain Association, following the same 36-month vesting schedule to continue supporting ecosystem growth.
Next Steps and Community Involvement
With the proposal passed, MANTRA will begin implementing these changes in preparation for the Mainnet launch scheduled for October 2024.
The community's role remains central to MANTRA's success, with governance participation and ongoing feedback playing crucial roles in shaping future developments. The approval of this proposal is a testament to the community’s engagement and commitment to building a resilient and innovative platform.
As MANTRA moves forward, it aims to continue to prioritize transparency and inclusivity, ensuring that its ecosystem remains aligned with its long-term goals of bridging TradFi and DeFi through compliant and scalable RWA solutions.
——————————————————
About Stakecito Labs
At Stakecito Labs, we've honed our craft as validators. Our reputation as the third-largest validator by delegation count within the Cosmos ecosystem speaks to our unwavering dedication and the trust placed in us by over 270,000 delegators worldwide.
Our validation services are not just about maintaining Cosmos blockchain networks though; we validate networks outside of Cosmos as well (NEAR, Aleph Zero, etc.).
Our core mission is centered on demystifying blockchain technology to ensure it's accessible for everyone, from newcomers to seasoned investors. To begin staking, visit our homepage.
Stake with Stakecito | Follow us on Twitter | Subscribe to Our YouTube | Governance
——————————————————
