Utilizing 8 Million MGP tokens from Magpie’s Treasury to Enhance Liquidity.
Abstract:
Magpie is a multichain platform that provides yield and veTokenomics-boosting services to different DeFi protocols. MGP serves as the governance token of Magpie and it provides users with voting power and passive income opportunities. We recognize the importance of optimizing MGP liquidity to provide a better user experience. In light of the MIP 20 outcome, we propose reducing the total amount of MGP allocated for liquidity improvement. The MIP 21 suggests using 8 million MGP tokens from the Magpie Treasury to boost liquidity on Arbitrum and BNB Chain, ensuring a more accessible and robust market for our governance token, MGP.
Motivation:
With the recent growth of Magpie and its ecosystem, it’s become increasingly important to ensure sufficient liquidity for MGP tokens. Observations of current market dynamics show active purchases of MGP from the secondary market, leading to scarcity for new potential buyers.
This proposal recognizes the community’s feedback on MIP 20 and adjusts its approach by reducing the amount from 10 million to 8 million MGP tokens, focusing on enhancing user experience and fostering the growth of MGP, while addressing concerns raised in the previous proposal. By adjusting the amount and ensuring protocol-owned liquidity, the MIP 21 is tailored to support the needs of both the Magpie ecosystem and its community.
Specification:
- Allocate 8 million MGP tokens from the Magpie Treasury to be used exclusively for liquidity enhancement on primary trading pairs of MGP on both Arbitrum and BNB Chain.
- Distribution across chains will be strategically decided by the Magpie team.
It’s crucial to highlight that this added liquidity is protocol-owned. The team commits not to withdraw these funds for operational use, ensuring trust and stability in the liquidity pools.