Proposal for MGP Emission Adjustment and mWOM Staking Weight Increase.
Abstract:
Magpie is a multi-chain DeFi platform that offers yield and veTokenomics boosting services. Recently launched on Arbitrum, the platform aims to enhance its capabilities and support the multi-chain development of Wombat Exchange. Magpie’s governance token, “MGP,” can be locked as “vlMGP” to participate in governance decisions and the bribery market across both Arbitrum and BNB Chain. Users can engage with the platform to earn a portion of MGP rewards. Since Magpie has been deployed on BNB Chain for a longer period, the majority of the MGP circulating supply is found there. This proposal suggests reducing the MGP emission on BNB Chain to lower the output of MGP tokens following Magpie’s launch on Arbitrum. In order to further incentivize WOM converters for their support, we also propose increasing the mWOM staking weight, which could lead to more WOM conversions and greater veWOM accumulation by Magpie.
Motivation:
In light of Magpie’s recent deployment on Arbitrum, a portion of MGP emission has been allocated to incentivize users on the network. Arbitrum users have the opportunity to obtain a share of Magpie’s governance and, consequently, earn increased rewards through the Magpie bribery market. To control inflation and distribute MGP rewards more efficiently, it is essential to decrease the MGP emission on BNB Chain. This approach will enable users on both networks to optimize their rewards while maintaining a healthy MGP moving forward. At the same time, it is suggested to increase the MGP rewards allocated to mWOM stakers, as we aim to reward them for their valuable contributions. This approach aligns with Magpie’s goal of accumulating more veWOM.
Specification:
Modify MGP emissions on BNB Chain:
- Decrease MGP emissions per second from 1.2 MGP/sec to 0.9 MGP/sec, same as MGP emission rate on Arbitrum.
Adjust mWOM staking weight on BNB Chain:
- Increase mWOM staking weight from 700 to 900.