Mars Migration to Neutron & Tokenomics Revamp
Mars Migration to Neutron & Tokenomics Revamp
Mars Migration to Neutron & Tokenomics Revamp

DeFi

Mars Migration to Neutron & Tokenomics Revamp

Date

June 20, 2024

Everything you need to know about the Mart Protocol migration to Neutron and the MARS tokenomics revamp.

TLDR;
- Token migration to Neutron
- Tokenomics Revamp (Buy and Burn, Safety Fund)
- Launch of Perpetuals
- Native Oracle via Slinky
- Governance via DAODAO

The $MARS token migration to Neutron and it's implications:

1) The old $MARS token will be decommissioned and converted in a Neutron native token.

2) This conversion will happen via a transmuter pool, which will be live for 6-12 months.

3) After this period ends, the Mars chain will shut down and burn all remining "not migrated" tokens.

It this safe you might ask? Yes, this very process was already tested earlier this year with the Astroport Finance ($ASTRO) token migration to Neutron.

Tokenomics Revamp

With this migration process, 50% of the Mars Community Pool tokens will be burned. This account to 30% of the total supply of $MARS. Furthermore there will be several new features and mechanisms that will strengthen the MARS token.

- Safety Fund: A portion of the protocol fees will be used to buy $USDC to fund the SF.

- Buy & Burn: Another portion of the protocol fees will be used to buy and burn $MARS, creating a deflationary effect.

- Buy & LP: Some fees will be used to provide liquidity for $MARS, building organic protocol owned liquidity.

- Staker Fee Discounts: reduced fees for on the Mars protocol for $MARS stakers.

Perpetual Contracts

The protocol will launch perpetual future contracts, next to it's lending and borrowing product offers, moving one step closer to a CEX like trading experience.

Perpetuals will also be a new source of revenue for the protocol, further fueling the buy back and burn mechanism.

Slinky is coming to MARS

Slinky is a native oracle built by Skip Protocol, which directly taps into the consensus engine behind the Cosmos SDK called Vote Extensions. Vote Extensions allow validators to include price updates in every block, meaning the protocol has no longer to rely on external parties for price oracle updates.

Having a native on-chain oracle ensures faster, cheaper and more reliable price updates.

Governance migration to DAODAO

Once the $MARS token migration to Neutron is completed, Mars will use the DAODAO protocol as it's new governance module. DAODAO enables the implementation of a DAOs & SubDAOs system, allowing for better protocol governance and management.


Disclaimer

This is a research article with the purpose to educate readers about certain topics and not a financial advice by any mean.



Table of contents

Title

Share article

Share article

Stay Informed and Inspired

Join our exclusive subscriber community to never miss out!
By signing up, you'll receive straight to your inbox

Join our exclusive subscriber community to never miss out! By signing up, you'll receive straight to your inbox