MCDEX Developers Want to Reduce the Liquidity Mining Reward by 90%

Major changes may be coming to MCDEX and MCB holders in the near future.

  • High Ethereum gas prices force native projects to look for alternative solutions. 
  • For MCDEX, the current gwei costs cause problems for its native design, as gas prices were expected to be closer to the 10 gwei mark. 
  • Offsetting this discrepancy in gas prices is not easy, and often requires rather unexpected solutions. Current MCDEX traders have to pay too much for trading derivatives, which can cripple the company’s business model.
  • Making a profit is, under the current circumstances, virtually impossible. 
  • The liquidity mining aspect now serves as a mere token distribution for MCB, rather than bringing value to the platform itself. 
  • Solution #1; building the MC_Fund to raise funds and trade at a bigger volume. This will offset the gas fee problem. It is expected to launch in October 2020. 
  • Solution #2: MCDEX v3 will use a different AMM model to focus on higher capital efficiency and leverage L2 scaling solutions
  • To ensure the situation doesn’t worsen before these solutions can be deployed, a proposal is put forward to reduce the mining reward by 90% to 0.2MBC per block. 
  • If approved by the community, MCDEX TVL will reduce, but this will be temporary. 
  • These changes will not affect the whitepaper’s outline, as no more than 5% of MCB tokens will be used in user incentives. 

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JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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JP Buntinx

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