Overview

Millicent One proposes an innovative tokenomic system designed to address the shortcomings of existing models. This approach aims to create sustainable value, align long-term incentives, and build genuine, lasting community engagement.

Drawing from the successes and failures of previous tokenomic experiments, Millicent One's Proof-of-Participation system aims to create a more sustainable and equitable ecosystem that aligns incentives for long-term participation and value creation.

Proof-of-Participation is based on three key tokens: MILLI, veMILLI, and popMILLI.

• MILLI is the network’s transferable utility token

• veMILLI is the network’s non-transferable governance token, created by locking MILLI

• popMILLI is the network’s non-transferable reward token, that cannot be purchased, and must be earned through positive-sum actions like liquidity provision and participation in governance.

All three tokens play important roles in the lifecycle and operation of the network infrastructure, including the network-owned applications, mDEX, mLEND, mFUTURES, and mOPTIONS.

An exogenous fourth token, USDC, is used as the network's native gas token.

Drawing from leading market comparables including Aerodrome's ve(3,3); Morpho's non-transferable token; and Berachain's Proof-of-Liquidity, Proof-of-Participation is designed to create a robust ecosystem that incentivizes active participation, aligns stakeholder interests, creates a powerful liquidity engine, and drives long-term sustainability.

By carefully balancing incentives and introducing non-transferable tokens earned through participation, Millicent One seeks to create an ecosystem that rewards genuine engagement and contribution, rather than short-term speculation.

Token Design

MILLI

MILLI serves as the primary utility token of the Millicent ecosystem.

• Creation:

  • Issued through emissions to a variety of network participants including Node Operators and Senators, as well as incentivized pools and applications

  • Distributed by the foundation for retroactive public goods funding, airdrops, and grant programs

• Usage:

  • Required as a stake for most types of Validator Nodes

  • Locking for a duration of up to 4 years, to obtain veMILLI

  • Issued as an incentive Characteristics:

• Characteristics:

  • ERC-20

  • Fully transferable

2. veMILLI (vote-escrowed MILLI)

veMILLI represents locked MILLI and serves as the network’s governance token.

• Creation:

  • Obtained by locking MILLI tokens for a specified period, with longer lock durations resulting in more veMILLI, and therefore more governance influence e.g.

    • 1 MILLI locked for 1 year = 0.25 veMILLI

    • 1 MILLI locked for 4 years = 1 veMILLI

• Usage:

  • Provides governance influence for protocol decisions

  • Used to nominate governance delegates

  • Accrues popMILLI incentives when delegated

  • Enables direction of ecosystem popMILLI and MILLI incentives to various protocols/pools/assets

• Characteristics:

  • Non-transferrable ERC-721

  • Time-locked, with penalties for early unlocking

3. popMILLI (Proof-of-Participation)

popMILLI serves as a measure of active participation in the Millicent ecosystem, rewarding stakeholders with value captured by the entire ecosystem.

• Creation:

  • Cannot be purchased, and can only be earned through positive-sum actions in the ecosystem, including liquidity provision, governance, Node operation, etc.

• Usage:

  • Accrues a portion of ecosystem cashflows (sequencer fees, network-owned application fees), distributed to popMILLI holders in USDC

• Characteristics:

  • Non-transferrable ERC-721

  • Decays over time, encouraging continuous participation

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.