Pylon Protocol
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Pylon Token ($MINE)
MINE is the native utility token for Pylon Protocol and the debut project of Pylon Gateway, the premier token launchpad for Terra. As with Pylon's namesake, MINE is inspired by Starcraft's "minerals." MINE is built with a yield-capturing mechanism for all forthcoming platforms and projects launching on Pylon Protocol and suite of products, including Pylon Gateway.
Token Utility
The first and foremost functionality of MINE is to allow MINE holders to govern the underlying protocol via the Pylon WebApp. Users can deposit MINE to create governance polls, and MINE stakers can vote on community fund grants, protocol updates, launchpad projects, parameter changes, new features development, and other ecosystem expansion initiatives.
MINE is designed to capture a portion of yields and transactions generated across all Pylon platforms and project launches on Pylon Gateway, such that MINE holders directly benefit from the success of Pylon Protocol and products built on top of it. Yields collected in TerraUSD are used to purchase MINE through Terraswap.
MINE buybacks are linearly distributed as staking rewards to MINE holders in proportion to each holder's percentage of total stake in the governance pool. This process creates buying pressure to balance the generation of new MINE tokens, supports long-term price stability and value growth, and allows Pylon to share transaction fee revenues with ecosystem participants.
MINE provides incentives to active community members on Pylon Gateway, that is, investors and project teams, as well as for secondary platforms that are building service offerings integrating Pylon via proposals submitted to the community fund. Liquidity providers to the MINE-UST Terraswap pair also receive MINE as passive income.
Value Accrual
Pylon captures a portion of total protocol assets under management (AUM) with the MINE token. At least 10% of interests and revenues generated across all Pylon projects and platforms will accrue directly to MINE via token buybacks. In addition, 20% of all yields generated on Pylon Gateway will fuel buybacks for MINE stakers.
Yields collected in TerraUSD are used for MINE buybacks on Terraswap, which are awarded to MINE holders. The parameters of the yield accrual mechanism can be changed in the future through the governance process. Holders of MINE are incentivized to propose, discuss, and vote for proposals that further merit the protocol.
MINE doubles as an incentives mechanism to bootstrap depositor demand and project launch incentives for platforms and projects that build on Pylon. Active ecosystem participants are awarded with MINE for their participation. These activities may include:
- users making deposits into selected projects on Pylon Gateway and other Pylon platforms
- projects launching tokens on Pylon Gateway
- platforms building service offerings that integrate with Pylon's "Deposit with Pylon" widget
- liquidity providers of the MINE-UST liquidity pool on Terraswap
On top of MINE rewards, MINE stakers may receive additional project token airdrops, NFT airdrops, and additional token rewards and early access perks on Pylon Gateway.
Governance
MINE stakers can exercise voting rights over protocol upgrades, parameter changes, community grants, and text proposals on Pylon's decentralized governance platform. Voting power for users is proportional to the amount of MINE staked.
Any proposal implementation or community fund use will be implemented only if it is clearly by the will of the community and has had a passing vote by quorum.
MINE token deposits for Pylon governance polls that have failed to reach the required quorum will be redistributed to MINE stakers as staking rewards.
Token Supply
The hard cap of circulating MINE token supply will be fixed at 10,000,000,000 MINE, which is scheduled for distribution over a period of at least 4 years. Beyond that, there will be no more MINE tokens introduced to the supply.
Annual inflation rate of MINE tokens is designed to gradually decrease every year, until MINE eventually reaches a maximum capped supply of 10B.
Genesis Token Distribution
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A total of 2,500,000,000 MINE tokens are released at the genesis of Pylon Protocol. The initial distribution of MINE will be as follows:
- Pylon Launchpad: 400M (16%) tokens will be distributed for early MINE investors. The genesis MINE launch on Pylon Gateway will distribute 200M MINE tokens across three deposit pools, while another 200M MINE will be reserved for the Pylon Swap pool.
- LUNA Staking Airdrop: 500M (20%) tokens will be airdropped to LUNA stakers, with the snapshot taken on the date of launch.
- Community Fund: 1,600M (64%) will be allocated to the community pool. At least 100M tokens will be reserved for bootstrapping initial project pipeline on Pylon Gateway, early user onboarding, or second-round MINE fundraising as needed.
Pylon Launchpad
A total of 400M MINE tokens will be distributed via Pylon Gateway, Terra's premier project launchpad.
- 200M MINE tokens will be rewarded to investors who stake UST for MINE in vesting pools of 6 months, 12 months, or 18 months, with varying cliffs and rewards.
- 200M MINE tokens will be available from Pylon Swap starting at a rate of 1 MINE = 0.01 UST, with a lockup period of 1 month.
Final Token Distribution
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Further MINE tokens are set to be released over a period of at least 4 years, increasing total supply until it reaches 10B. The final distribution structure will be:
- Pylon Launchpad: 400M (4%) tokens will be distributed to early MINE investors over vesting periods of 6 months, 12 months, and 18 months.
- LUNA Staking Airdrop: 500M (5%) tokens are airdropped to LUNA stakers on launch.
- LUNA Staking Rewards: 1,000M (10%) tokens are linearly distributed to LUNA stakers over a period of 2 years. Tokens will be distributed every 100,000 blocks (approximately every week). Snapshots are taken every 100,000 blocks to determine distribution eligibility.
- Depositor Incentives: 4,000M (40%) tokens are linearly released to be used for depositor incentives and to reward ecosystem participation over a period of 4 years.
- Community Fund: 1,600M (16%) tokens will be reserved for the Pylon Community Fund.
- Team Reserve: 1,000M (10%) tokens will be vested over 4 years to the creators of Pylon.
- MINE LP Staking Rewards: 1,500M (15%) tokens are distributed to the MINE-UST pair liquidity providers over a period of 4 years.
Cumulative Token Distribution (in Millions)
Title
Genesis
Year 1
Year 2
Year 3
Year 4
Luna Staking Airdrop
500
500
500
500
500
Luna Staking Rewards
0
500
1,000
1,000
1,000
Depositor Incentives
0
1,000
2,000
3,000
4,000
MINE LP Incentives
0
750
1,000
1,250
1,500
Pylon Launchpad
400
400
400
400
400
Community Fund
1,600
1,600
1,600
1,600
1,600
Team Reserve
0
250
500
750
1,000
Total Token Supply
2,500
5,000
7,000
8,500
10,000
Distribution to Ecosystem Participants
MINE tokens allocated for depositor incentives are gradually distributed to depositors (users), creators, and platforms, including projects teams and investors on Pylon Launchpad, as well as other ecosystem participants on forthcoming Pylon-powered platforms.
MINE incentives fuel a self-reinforcing adoption cycle, where they incentivize more projects to integrate Pylon and more depositors to stake UST, bringing further buying pressure to MINE.
Distribution to MINE Liquidity Providers
High exchange liquidity for MINE is crucial for maintaining a constant incentive flow across all platforms. To incentivize initial exchange liquidity of MINE, newly minted MINE is distributed to liquidity providers, specifically via the MINE-UST Terraswap pair. MINE tokens are distributed as part of staking rewards for the MINE-UST Terraswap pair LP tokens.
Last modified 4mo ago