Magnet: Next Steps

We are builders at our core

Moving to a veMAG model

What would this look like for MAG holders?

  1. Stop rebases: Over the next 3 months, reduce the staking APY for MAG from where it is now to 0%. We’ll start this week by cutting the APY in half, and then move to 0% by May 27th.
  2. Implement veMAG: Within the next 3 weeks, we will implement a veMAG contract where users can stake their MAG and earn veMAG over time.
  3. Reward veMAG holders: veMAG holders would be rewarded from a bucket of tokens.
  4. Instead of receiving an APR in more MAG, users would receive VTX, AVAX, JOE, etc.
  5. The APR of these rewards would be determined by the user’s veMAG balance.
  6. This bucket of tokens would consist of projects that the Magnet treasury invests in, incubates, or builds, and yield from the treasury’s farming rewards.

What will we do with the Magnet treasury?

  • Allocate 20% of the treasury towards innovation: investing in new or promising projects during their pre-sale rounds, incubating teams internally, or building projects on our own (including hiring more developers, business developers, marketers, etc.) This will essentially mean doubling our innovation fund. We’ll make sure the community has direct input on how these funds are utilized: any use of over 5% of the fund would need to be discussed and approved by the community. The yield from these projects would then be returned to MAG holders as they hold MAG and accrue veMAG.
  • Allocate 80% of the treasury towards managed farming on safe platforms using mostly stablecoins. Utilize these yields to reward MAG holders as they remain accruing veMAG and in proportion to their holding.

How will early supporters benefit

  • We are snapshotting MAG balances at various points over the last few months to triangulate who has held & staked the longest
  • We’ll allocate more veMAG to these users than those that have bought more recently, or have sold in the past
  • The longer and more MAG you’ve held, the more rewards you’ll earn
  • veMAG holders will also benefit by having early access to any pre-sales of every project we build

Why should someone buy MAG?

  • With MAG no longer being inflationary via emissions, and a large portion of the treasury being used to farm yield, the token will become a high yielding asset without any inflation
  • The rewards from utilizing our innovation fund will be allocated completely to veMAG holders — as Magnet invests, incubates, and builds, that profit will be funneled straight to MAG token holders, with the most going to those who have held the longest (i.e. who has the most veMAG)
  • In the future, we may also implement the ability for MAG to be burned in order to accrue more rewards from the protocol’s we build, or speed up the accrual of veMAG

What are the next steps for the roadmap?

  1. Within the next 3 weeks, we will implement our veMAG feature. MAG token holders will be able to stake their MAG in the contract and accrue veMAG along with the remaining rebase emissions.
  2. Over the next 3 months, reduce the APY for Magnet staking down to 0%. Each month, starting in mid March and proceeding until May 27th, we will cut the ROI in half and then turn emissions completely off.
  3. At the same time as MAG rebases end, MAG token holders that have accrued veMAG will be able to claim their $VTX tokens from the airdrop, along with other tokens received from our farming, pro-rated for the amount of veMAG they have.
  4. Deploy 80% of the MAG treasury over a mix of high yield stablecoin farms on the Avalanche network and elsewhere. The return on this farming will be distributed proportionally to veMAG holders starting on May 27th and claimable at any time.
  5. The team will work closely with the core Magnet community to formulate an investment thesis, incubation, and development strategy. We’ll hold discussions and votes on any substantial deployment of the innovation fund.
  6. Based on this strategy, the core team and wider community will identify high value projects for investment, incubation, or development. The 20% of the Magnet treasury delegated to the innovation fund will be used to fund these projects and any tokens from these investment returned to veMAG holders.

Let’s discuss

What about Investathon and the airdrop details?




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