🏅Tokens
Tokens Overview
Moth Finance utilizes a multi-token system designed to maintain the $MOTH peg to $USDC and provide the best yield and stability mechanisms within the ecosystem. The primary tokens in our protocol are $MOTH & $gMOTH.
$MOTH Token
$MOTH is the primary yield token of the Moth Finance protocol, designed to act as a medium of exchange. Its built-in stability mechanism aims to maintain a peg of 1 $USDC in the long run.
Key Details:
Initial Mint: 50 $MOTH were minted upon contract creation for initial liquidity, and 750,000 $MOTH were allocated for genesis rewards.
Peg Mechanism: $MOTH pegs to $USDC through an algorithm, not collateralization.
Tokenomics: Supply of $MOTH is increased when above peg, and maintained when below peg. The supply is, in theory, unlimited; but supply expansion rates are dependent on the revenue generated by the Moth Treasury. This way all newly minted $MOTH is always 100% backed by $USDC in the Moth Treasury.
$gMOTH Token
$gMOTH represents protocol ownership.. It also acts as a share token that reflects confidence in the protocol’s ability to maintain $MOTH at its peg, as well as the strength of Etherex incentives/voting system.
Key Details:
Initial Mint: 1,000 $gMOTH were minted upon contract creation for initial liquidity w/ 50,000 $USDC, and 59,000 $gMOTH allocated towards liquidity rewards.
Tokenomics: 59,000 $gMOTH for liquidity rewards over 2 years linearly; 10,000 $gMOTH to the Team also linearly over 2 years.
Epoch Expansions: During expansion epochs, $MOTH is minted based on generated revenue and distributed to $gMOTH holders who have staked in The Cocoon.
Governance: Holders of $gMOTH have voting rights and can participate in protocol governance, shaping its future development.
Bootstrapping Epoch: The initial Cocoon prints are guaranteed during the first 3 days (12 epochs).
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