What is the token economics model of MiL.k (MLK)?

Sentence: The MLK token enables governance, staking rewards, and ecosystem access within the Milkomeda network, fostering network participation, early adopter rewards, and long-term stability.

Dec 19, 2024 at 03:35 pm

Key Points:

• MiL.k (MLK) is a decentralized autonomous organization (DAO) that governs the Milkomeda network, a sidechain for the Cardano blockchain.
• MLK serves as the utility and governance token of the Milkomeda network.
• MLK token holders have voting rights on network proposals and receive rewards for securing the network.
• The tokenomics model of MLK is designed to balance incentives for network participation, reward early adopters, and ensure the long-term stability of the network.

Tokenomics Model of MiL.k (MLK)

1. Distribution:

• Total supply: 100 million MLK

• Initial distribution:

  • 20% to the Milkomeda team
  • 30% to early investors and advisors
  • 50% to the community through a public token sale

2. Token Utility:

• Governance: MLK holders can vote on network proposals related to protocol upgrades, fee structures, and ecosystem development.
• Staking rewards: MLK holders can stake their tokens to secure the Milkomeda network and earn rewards.
• Access to ecosystem services: MLK may also be used to access exclusive features and services within the Milkomeda ecosystem.

3. Token Vesting:

• The Milkomeda team's tokens are subject to a three-year vesting period.
• Early investors and advisors' tokens are subject to a one-year vesting period.
• 25% of the tokens allocated to the public token sale are released immediately, with the remaining 75% vesting over a one-year period.

4. Staking Rewards:

• MLK holders who stake their tokens will receive rewards based on the amount staked and the duration of staking.
• Rewards are distributed proportionally to the number of staked tokens and the length of the staking period.
• The reward rate and staking parameters are determined by network governance.

5. Token Burn Mechanism:

• A portion of transaction fees generated by the Milkomeda network will be used to buy back and burn MLK tokens.
• This mechanism aims to reduce the supply of MLK over time, potentially increasing its value.

FAQs:

Q: What is the purpose of MiL.k (MLK)?
A: MLK is the native token of the Milkomeda network, used for governance, staking rewards, and accessing ecosystem services.

Q: How can I buy MLK tokens?
A: MLK tokens are currently available for purchase on decentralized exchanges such as Raydium and PancakeSwap.

Q: What are the benefits of staking MLK?
A: Staking MLK allows holders to secure the Milkomeda network and earn passive rewards.

Q: What is the total supply of MLK tokens?
A: The total supply of MLK tokens is 100 million.

Q: What is the mechanism for controlling the supply of MLK?
A: A token burn mechanism is implemented to reduce the supply of MLK over time.