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.

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

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

popMILLI

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 stablecoins

  • Characteristics:

    • Non-transferrable ERC-721

    • Decays over time, encouraging continuous participation

Last updated