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.

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