Mechanics

System Dynamics

1. Incentive Alignment:

   • Users are incentivized to acquire and lock MILLI to obtain veMILLI, which grants governance influence.

   • veMILLI holders are motivated to participate in governance and delegate to Node Operators to accrue popMILLI

   • popMILLI holders benefit from ecosystem cashflows, encouraging them to continue participating and potentially acquire more MILLI to increase their influence and popMILLI holdings.

2. Liquidity Provisioning:

   • Liquidity providers receive popMILLI and MILLI emissions.

   • This structure encourages deep liquidity across the Protocol's various native products (AMM, derivatives, lending).

3. Governance:

   • veMILLI holders can vote on fee structures, rewards distribution, protocol upgrades, contract deployer whitelisting (e.g. new project launches), new markets on native services, etc.

   • This aims to align long-term holder interests with the platform's success.

4. Value Accrual:

   • As the ecosystem grows, the value captured through various sources is distributed to popMILLI holders.

   • This is designed to create a positive feedback loop where ecosystem growth directly benefits active participants.

   • Node operators can also be incentivized by third-party actors, e.g. new applications or asset issuers that wish to direct MILLI and popMILLI rewards to their applications/assets. These incentives should be shared pro-rata by Node operators to their veMILLI delegates.

5. Attack Resistance:

   • The combination of time-locked veMILLI and earned popMILLI is designed to make it difficult for malicious actors to quickly gain outsized governance influence or economic benefit in the ecosystem.

6. Continuous Participation:

   • The decay mechanism of popMILLI aims to encourage users to remain active in the ecosystem to maintain their benefits.

Ecosystem Flywheel

1. Users lock MILLI to obtain veMILLI for governance power

2. veMILLI holders participate in governance and direct popMILLI and MILLI rewards to incentivize certain applications/pools/assets.

3. Active participation, notably the provision of liquidity, in the ecosystem earns popMILLI, representing a share of ecosystem cashflows.

4. popMILLI holders are incentivized to continue participating and potentially increase their veMILLI holdings.

5. Increased participation deepens liquidity and enhances platform security.

6. A more secure and liquid platform attracts more users and protocols.

7. Growth in users and protocols increases ecosystem revenues, benefiting popMILLI holders.

8. The cycle repeats, creating a self-reinforcing ecosystem of aligned incentives and value accrual.

Disclaimer

This document is a public preview. Nothing proposed herein is will be activated until formally proposed to and ratified by Millicent One's Alpha Governance.

Token Rights and Limitations

Native tokens on the Protocol ("Protocol Tokens") do not confer any rights (including but not limited to information, voting, economic, fiduciary, or contractual rights) against or in relation to the assets or personnel of any Protocol contributors, including the core software development contributor, Millicent Labs.

Divergent Interests

The interests of Protocol contributors, their directors, officers, and investors may significantly differ from those of Protocol Token holders, Protocol users, and other Protocol participants.

No Guarantees or Obligations

Protocol contributors make no guarantees, commitments, or undertakings regarding the utilization of their assets, funds, properties, or personnel for the benefit of Protocol users or other Protocol participants. Protocol contributors do not assume any duties or obligations to Protocol Token holders, users, or other Protocol participants beyond those arising under generally applicable laws.

Potential Conflicts of Interest

Protocol contributors may have various legal, fiduciary, and contractual obligations that could conflict with the interests of Protocol Token holders, Protocol users, and other Protocol participants.

Software Provision and Liability Limitation

To the maximum extent permitted by applicable law, all Protocol-related software is provided on an "as-is, where-is" basis, without representations or warranties. Protocol contributors and individuals involved in Protocol development shall not be liable for any damages arising from the use of the Protocol or Protocol Tokens.

Governing Terms

In the event of any conflict or inconsistency between this document and the terms of any software license involved in the Protocol, the software license terms shall prevail.

Forward-Looking Statements

Forward-looking statements herein are subject to numerous assumptions, risks, and uncertainties that may change over time. Actual results or developments may differ materially from those anticipated, even if anticipated results and developments are realized.

Right to Modify

Protocol contributors reserve the right to modify any plans, expectations, and intentions stated or implied herein at any time, for any reason, and without obligation to provide updates or revisions to this document.

Token Availability Limitations

Protocol Tokens may not be available to all participant types or participants in certain jurisdictions. Specifically, participants in the following jurisdictions may face restrictions or prohibitions on token acquisition or use:

• United States of America

• People's Republic of China

• North Korea

• Iran

• Syria

• Crimea region of Ukraine

• Canada

• United Kingdom

This list is not exhaustive and may change based on evolving regulatory landscapes. Potential participants should consult local laws and regulations before engaging with the Protocol. It is the responsibility of each participant to ensure compliance with applicable laws in their jurisdiction.

Purpose of Document

This document is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any interests in Protocol contributors or any securities. It is not intended to provide legal, financial, investment, or other advice. Readers are advised not to rely on this document for making financial or other decisions.

Disclaimer of Liability

To the fullest extent permitted by law, Protocol contributors, their affiliates, and their respective officers, employees, agents, and representatives disclaim all liability for any loss or damage of any kind (whether foreseeable or not) that may arise from any use of the information contained in this document.

By interacting with the Protocol or acquiring Protocol Tokens, you acknowledge that you have read, understood, and agree to be bound by the terms set forth in this disclaimer.