Tokenomics Enhancement — MetFi DAO MetFi DAO is pleased to announce that a new governance proposal with very significant enhancements to our tokenomics model has been presented to the MetFi community who are now voting on whether to approve or reject this proposal. If approved, we believe the proposed enhancements will be enormously beneficial to all MetFiers as well as the broader crypto community as they will remove all current and significant obstacles in our way and lay the foundation for global mass adoption of the MetFi protocol. The proposed enhancements primarily center on 2 core areas: 1. Maximum supply of the MFI token, 2. Halving MFI distributions. Both of these enhancements, along with some extra mechanics mentioned later in this blog will accelerate user adoption, and the growth of our treasury, positively and impactfully improving the likelihood of long-term success and sustainability of MetFi DAO. MetFi DAO Let’s look at both of these areas individually by highlighting the expected benefits that each enhancement will bring to the MetFi ecosystem. Maximum Supply MetFi proposes to pre-mint 500,000 MFI. If approved, there will never be any more than 500,000 MFI just like there will never be any more than 21 Million Bitcoin. Locking in a maximum supply of MFI benefits users and investors with increasing scarcity and value preservation. As demand for MFI grows scarcity of MFI increases, ensuring that MFI becomes a long-term, deflationary store of value asset with ever-increasing utility. MFI will not be subjected to devaluation via inflation leading to greater price stability and predictability as the release of uncirculated MFI onto the market will be predictable, gradual, and sustainable, enabling investors to make more informed and accurate predictions about the future value of the MFI token. Halving MFI Distribution Regular halving events have had a significant and positive effect on the price of BTC and we believe that MFI will also see significant price appreciation with the introduction of halvings as they slow the distribution of MFI. Each six (6) monthly halving event will further reduce the number of MFI coming into circulation while demand for MFI remains constant or increases, creating a situation where the supply of MFI is lower than demand, increasing the price of MFI higher than it would be without all of these enhancements. Halvings will accelerate user adoption and bring greater decentralization to MetFi as more users decrease the potential for whales to overly exert their influence on the direction of MetFi DAO. Extra Mechanics Secondary enhancements that complement the 2 core modifications above are: 1. Burning MFI (additional burning mechanics), 2. Recycling undistributed MFI. Burning MFI Token burns would become a crucial and regular event that we can all look forward to if this proposal passes as token burns are a popular, well-understood, and proven mechanism to reduce the circulating supply of a token. One only has to look at Binance BNB token burns to see how tokenomics can be strategically utilized to drive the success and growth of a token and its underlying protocol. “In crypto, a deflationary token is one whose circulating supply will decrease over time, thus making it inflation-resistant and a store-of-value asset.” CZ, Binance Founder & CEO. Adding more MFI burning mechanisms than we already have in place would increase the scarcity of MFI leading to an increase in demand and a rise in the price of MetFi whilst opening the door to some fantastic marketing opportunities that our DAO can leverage. One important aspect of MFI tokenomics that is often overlooked is that MFI can be thought of as a method of payment within the MetFi ecosystem. For example, MetFiers will soon have the functionality to swap staked MFI for treasury assets with this enhancement having already been approved by the MetFi community and already well under development. Importantly, swapping staked MFI for treasury assets, unstaking, NFT marketplace transactions, and our lending platform all generate fees of one form or another, in fact, any fees generated from all future MetFi products will require the user to pay, in most instances with MFI, more on this in the next section. Recycling MFI 90% of MFI that is destined to be burned (as explained in the previous section) will in fact be recycled and placed in a separate, locked pool until after the 6th halving event. At the conclusion of the 6th halving event (3 years from now), all of these MFI will be released back to the MetFi community one way or another and of course, it is the MetFi community that will ultimately vote on how these MFI will be distributed. However, just to get your mind thinking a few potential distribution mechanisms could be to use the MFI to sustain higher APYs to NFT owners, and/or for airdrops based on NFTs held, competitions and so much more. These are decisions for another day as we have 3 years to decide but rest assured, the MetFi community will make the final decision on how this MFI is recycled. The remaining 10% of MFI will be burned. Conclusion If approved, these enhancements will be a public, transparent display to the market that MetFi DAO is committed to the long-term sustainability and success of the protocol. A commitment to firstly limit and simultaneously reduce the total supply of MFI tokens will not only increase trust, understanding, and confidence in the MetFi ecosystem and the MFI token but it should also lead to the permanent removal of those annoying, growth-inhibiting banners on some major crypto platforms. Most importantly, MetFiers will now vote on whether to accept or reject this proposal as MetFi is a true DAO, and your future and the future of all other MetFiers lies in your hands at this seminal moment of our journey. If MetFiers choose to reject this proposal they should expect slower user adoption, slower growth, a weaker treasury, and less credibility and acceptance in the crypto market. If MetFiers approve this proposal they should expect an even healthier and more sustainable MetFi, significant growth and user adoption, more buzz about MetFi, and a more stable and predictable token with a far greater likelihood of price appreciation than it would experience if this proposal were to be rejected. MetFi DAO aspires to be the world’s #1 Metaverse and Web3 incubator, join us on the journey of a lifetime as we make history together. Until next time!