The $MEE tokenomics is designed to be sustainable at its core, which translates to avoiding any type of rewards using non-circulating tokens (i.e. liquidity mining, staking rewards, etc.). Instead, all tokens used to reward our users will come from open-market buyback, or from the instant withdraw fees, protecting our token holders and stakers from a high dilution of tokens.
We do the bet on bringing huge utility to our token to bootstrap its adoption instead of boot-strapping our platform use and token use by rewarding users with a ton of tokens.
The Initial circulation supply of MEE will be 2,162,500.00 MEE. The token price will be communicated at a later time.
liquidity building
Liquidity management is critical in all projects that evolve on-chain. Most projects build it through yield farming since it’s fast and “free” (projects rent the liquidity directly with their own tokens). However, this has several harmful effects on the project in the long run:
It implies a continuous release of tokens into the market, resulting in significant dilution of the token and constant selling pressure, as most liquidity providers sell the rewards;
When you stop emitting, all of the liquidity in the liquidity pool will be quickly removed because the liquidity provider is no longer incentivized to stay exposed to the AMM’s impermanent loss. This will increase token volatility and make it less resistant to market fluctuations.
To avoid this, we will build our own liquidity and buy it back from our users. In short, users will have the option to sell to the platform MEE-APTOS liquidity pool tokens (LP tokens) in exchange for native sMEE tokens at a discounted rate. This will allow the user to access IDO at a lower price and allow the MEE DAO to increase his POL (Protocol own liquidity).
MEE tokens that are sold at a discounted price have to perform a 14-day unlocking in order to sell. This will avoid Mercenaries that will only buy MEE to make a direct profit, instead, rewarding long-time holders that are looking to participate in the IDO.
The protocol’s own liquidity has several advantages:
Avoiding high token inflation; even if this results in the release of new tokens on the market, these tokens are vested and are not earned “for free” as with liquidity mining; the user must still purchase them
Creating sustainable liquidity, since the liquidity will be owned by the Meeiro.xyz DAO and will not leave the market if we stop buying back it.
The disadvantage is that liquidity takes longer to build when compared to liquidity built through yield farming.
We will also give the ability to participate in our IDO by staking MEE-APTOS in our staking. This will incentivize liquidity providing by giving the ability to gain access to the IDO’s.
In the $MEE tokenomics, we want to avoid as many incentives associated with introducing new tokens to the open market. That’s why we decided to only reward our stakers with tokens earn by the instant withdraw and to focus our efforts on developing protocols with liquidity owned directly by the DAO.