MESH Redistribution Policy
Last updated
Last updated
Meshswap distributes MESH to each farming pool based on the following criteria:
80% of MESH inflation is distributed to Lenders, Liquidity providers, and MESH Stakers who are the key contributors to the Meshswap ecosystem. The reward distribution ratio of each farming pool can be adjusted through the DAO governance vote. The table below is an example of MESH inflation distributed to each participant in the first year based on the initial distribution ratio (**).
| Distribution target | Distribution ratio by block (%) | Distribution per block (4 MESH) | Daily distribution (43,200 blocks) |
|---|---|---|---|
Meshswap governance classifies token levels with Meshswap ecosystem into the following three categories. Through governance agenda voting, the DAO decides which type of token is qualified to receive an additional MESH incentive.
Even for Grade B assets that have passed governance once, they are reviewed by the DAO governance through voting to maintain their qualifications every 3 month (The governance voting process is described in detail in the Governance section).
A. MESH
As a governance token that plays a key role in Meshswap, active farming pools paired with MESH can increase the MESH value by reducing (temporary freezing) the MESH distribution volume.
Farming pools paired with MESH provide MESH rewards to increase MESH demand, leading to a MESH price stabilization.
B. Grade A assets
It refers to the major token with a market cap at a certain level and being listed in main exchanges with high accessibility, big holder community, and a large volume of liquidity backed by the public
Securing these major assets to Meshswap’s ecosystem brings along with the public's huge transaction, new liquidity inflow and drives higher MESH value through MESH Buyback & Burn.
Through this process, Meshswap and MESH can be exposed to the major asset community, creating a strong public-based market dominance.
C. Goverment-Passed Assets (Grade B assets)
The evaluation of Grade C tokens is a bit of a grey area where it is difficult to access the current value of teams, technologies, and communities. Hence, decisions are made on whether to participate in the ecosystem by the judgment (governance vote) of DAO, a strong supporter of Meshswap and MESH.
Each farming pool is classified according to the type of paired asset as follows, and the DAO adjusts the weight of each pair through voting. Pairwise weights are applied to the user pool votes and MESH buyback metrics aggregated by pair. () parentheses are the initial weight of each item, which can be changed through governance voting.
A. MESH Core pair (8): A pair of MESH + a major asset
B. Core pair (4): A pair of major assets
C. MESH Community pair (2): A pair of MESH + an asset passing through governance
D. Community pair (1): A pair of a major + an asset passing through governance
Meshswap governance evaluates each farming pools’ contribution and growth potential under the automated MESH distribution rate system that comprehensively reflects MESH buyback quantities and user pool voting. DAO adjusts the detailed reflection ratio of the two items through voting. () parentheses are the initial reflection ratio of each item and can be changed through governance voting.
A. MESH buyback quantity (50%)
The clearest indicator that measures the degree of contribution to Meshswap and MESH is the volume of transactions and the MESH buyback quantity functions as an objective indicator that measures the volume in a continuous manner.
Smart contracts automatically buyback MESH every hour with the transaction fees generated from each farming pool, and the daily MESH buyback volume accumulated per farming pool gets burned once a day, and counted as a daily indicator.
To reflect both short-term and long-term indicators, we reflect all MESH buyback quantities; 7th day (15%), 14th day (15%), 30th day (20%).
B. User pool vote (50%)
Evaluation of grey areas mentioned earlier where automated aggregation cannot perfectly cover, such as trustworthiness and contents of tokens, and future growth potential of products, are supplemented through user pool voting.
Grade C assets (Grade C token) can be upgraded to governance passed assets (Grade B assets) through governance agenda voting (MESH distribution qualifications acquired).
At this time, governance assets automatically vote to maintain their qualifications every three months.
Through a smart contract, a maintenance vote will be automatically generated 7 days before the end of the MESH distribution qualification for the token, and DAO's vote will be in progress.
According to the existing governance voting approval policy criteria, the token grade will be maintained for another three months after the asset is approved (passed). If it gets rejected (canceled), related pairs in farming pools will be excluded from MESH distribution from the time the code is reflected.
Apart from the maintenance vote, if a MESH distribution withdrawal is put to a vote and approved, related pairs in farming pools will be excluded from the MESH distribution.
Aggregation of user pool votes
The number of votes polled is calculated based on snapshots at 9 a.m. (UTC+9) every day.
After voting for a particular farming pool is completed, it can be withdrawn after the next snapshot point.
If MESH reward pool has been changed to the Transaction fee reward pool, withdrawals can be made before the next snapshot point.
If the level of paired assets in the farming pool has been downgraded through MESH distribution withdrawal vote, withdrawals can be made before the next snapshot point.
Aggregation of Buyback MESH quantity
Smart contracts automatically buy back MESH every hour by using transaction fees generated from each farming pool.
MESH buyback quantity accumulated for 24 hours (9 a.m. every day (UTC+9) to 9 a.m. the day after (UTC+9)) for each pair gets confirmed as MESH buyback quantity per day, and burned once a day.
MESH buyback quantities are aggregated by summing the quantities of 7th day (15%), 14th day (15%), and 30th day (20%).
For recently created farming pools, MESH buyback quantity aggregate criteria would not be met on the 14th and 30th due to the short period of the pool existing period. In this case, MESH buyback quantity aggregated from the creation of the pair to the present would be the norm.
When the MESH buyback quantity by date of the pair, which has been 3 days after its formation, is as follows, the aggregate of MESH buyback quantity indexes on the 7th, 14th, and 30th are as follows. ＊ The buybacks quantities by date 1st: 10 MESH /2nd: 10 MESH / 3rd: 20 MESH ＊ MESH buyback quantity indexes of pair for 7th / 14th / 30th day 7th day: 10 MESH / 14th day: 40 MESH (10+10+20) / 30th day: 40 MESH (10+10+20)
Lender
10%**
0.32 MESH
13,824 MESH
Liquidity provider
50%**
1.60 MESH
69,120 MESH
MESH staker
40%**
1.28 MESH
55,296 MESH
Total
100%
3.20 MESH
138,240 MESH