What’s next for MARKET Protocol? – MARKET Protocol
Launching on mainnet is a major milestone and we’re thankful to our team and supporters who got us here!
First — We’re Listening to our users and our community — You!
We want to know what worked and what didn’t. What was hard to understand? How can we improve? Hop into our Discord and let us know.
MARKET Protocol by the numbers
Since launching MARKET Protocol, MARKET Protocol Exchange (MPX), and the minting platform (Polymer) on mainnet less than three weeks ago, we have been pleased with the traction.
- 300+ Registered users on MPX
- Over 150 completed trades
- 55,000+ DAI traded in Position Token Volume
- Over 150,000 DAI locked into smart contracts using Polymer
- 150% week over week growth in new traders on MPX
Over 100 new users received more than 20,000 MKT for participating in a series of activities on MPX. Leading to a lot of questions about MKT, how it fits into the ecosystem, and how it will be distributed.
Let’s Talk about About MKT:
There are 600,000,000 MKT tokens and no more will ever be created. Approximately 13% of the total supply has been distributed to early investors, team members and advisors. Another 12% is allocated to these groups and will be distributed over the next two years.
Below is a breakdown of the planned distribution throughout the ecosystem.
How is the token currently used within the network?
- On MPX, anyone can mint Position Tokens by depositing collateral and receive a discounted minting fee if paid in MKT. Fees can also be paid in the collateral token (DAI) but without the discount.
- Starting August 1st, and with each subsequent contract settlement 25% of the MKT used to pay fees will be burned (until version 2).
- Protocol governance and risk management decisions will be made by MKT token holders. For example, voting on which synthetic assets will be listed will take place on a soon to be released dashboard.
Market Protocol v2 focuses on expanding the ecosystem and introducing governance mechanisms for decentralizing key components of the protocol. With v2 MKT token holders will begin to secure the network through staking.
A burn mechanic will be implemented at the protocol level.
By staking MKT, participants can perform work on the network and are compensated by the fees generated by applications on the network.
To encourage development and enhance the network, all of the collected fees will be allocated as follows:
- 70% to the developer/application that submitted the transaction generating the fee.
- 20% added to the network fee pool distributed to 1.) MKT holders who assist in settlement resolution and 2.) MKT holders who assist with governance decisions
- 10% burned
MKT holders may validate oracle settlement values by staking their tokens.
- If the settlement value is approved, yes votes share pro rata in the 20% network fee pool.
- If settlement is disputed, it will be further validated against a decentralized oracle pool provided by the Chainlink network.
- In the case of a successful dispute, those that participated will be rewarded with the fee pool.
- In the case of a failed dispute, those that participated will have their staked MKT slashed 5% and redistributed with the fee pool.
- While a user can assist in approving a settlement value with their collateral locked in the contract, it is required to use staked MKT to open or take part in a dispute. This ensures that valid contracts settle in a timely manner while invalid contracts are properly challenged and appropriate penalties applied.
MKT is used for ecosystem governance to help determine future fee allocations, adjustments and protocol direction.
If you’d like to participate further in the forward development of these concepts, please join us in our Discord #governance channel
Beyond protocol enhancements which will deliver more decentralization and value to the network, we will also be rolling out new layer 3 products. The first two layer 3 products on MARKET Protocol are our exchange, MPX. As well as our synthetic asset minting/redeeming platform Polymer.
We also have several new applications on the horizon which will generate more usage within the network and contribute to the overall network fee pool.
The first thing we’d like to announce is Crobar. An application which delivers a user-friendly way to gain safe leveraged exposure to synthetic assets without all of the overhead of a full exchange interface. We cover this in more detail in a later post.
After that, we’re looking at different types of apps utilizing MARKET Protocol contracts to easily hedge risk or create long-term exposure to synthetic assets.
We’re also looking forward to seeing what you build or having you join the ecosystem and contribute in other ways.