Minotaur Money Reward Rate Reset To 0.3%

The reward yield has been >0.6% even when the protocol’s reward rate has been 0.4%

Greetings, Minotaurs! We announce that the MINO rebase reward rate has been set to 0.3%. This means that the MINO supply will expand by 0.3% every 8 hours starting two rebases from now!

We started the reward rate at 0.5%, then reduced it to 0.4%, and now we are further reducing it to 0.3%. There are several reasons for this:

  • Our transaction tax on selling has been adding significantly to the holders’ reward yield without expanding the supply. In the screenshot above, holders receive >0.6% in 8 hours when the protocol’s reward rate is 0.4%. Therefore, stakers receive more than the protocol’s base reward rate as the reward yield.
  • Runaway supply growth is unsustainable, as we have seen with the recent events surrounding Wonderland and Olympus DAO. In order to preserve our ability to keep rebasing, we have to expand the supply conservatively.
  • We need to further reduce selling pressure in order to negate the supply effects of treasury expansion, as minting/bonding adds tokens to the supply.
  • Our outside bonus staking at MMF provides an extra incentive to remain staked, and the treasury will continue to mint sufficient tokens to provide these rewards at the new reward rate.

We look forward to keeping in touch with the community about this and other developments. Please join our Telegram or Discord servers to stay in the loop!

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