- Disable the mint/redeem with ARTHX
- Make ARTHX earn 50-100% of the fees from all the MahaDAO products
- Keep the deflationary ARTHX mechanics
- (optional) Introduce an ecosystem fund which will collect 10% of all the fees
In this proposal, we’d like to recommend the following changes to the ARTHX token. Previously the ARTHX token was the token designed to absorb the volatility of the ARTH token, making ARTH meet the 110% collateralization ratio and the target price of 2$.
With the introduction of the new ARTH loans product, there will be an alternative method to mint ARTH which is less risker (as the minter will not face any risks on the ARTHX price) and will achieve the same level of stability that ARTH currently has.
This effectively means we can greatly reduce the negative sell/mint pressure on the ARTHX token.
By removing the mint function; we make ARTHX completely deflationary and also avoid the risk of a possible Soros attack (which could cause a bank run) on ARTHX.
This also means that the current distribution of ARTHX will over time get concentrated to the existing ARTHX holders but that should not cause any harm to the ecosystem (excluding the price of ARTHX) given that ARTHX is not used for voting or governance of any kind.
Furthermore, as the core MahaDAO team builds more and more products that will continue to generate fees, we suggest making ARTHX the central token for all fees that will get collected across all the chains.
Adding on to this, by recommendation by various advisors and economists, we also propose splitting a portion of the fees collected to an ecosystem fund which can be used to further fuel the growth of MahaDAO and the various products.
With the point mentioned above, there are two possible scenarios on how the fees get distributed to ARTHX holders given the fact that there is also a debt pool that needs to be paid back up.
In this case the fees given to ARTHX holders will happen in the following distribution
- When the debt pool is active: 50% will go to the debt pool and 50% will go to the ARTHX stakers
- When the debt pool is fully paid off: 100% will go to the ARTHX stakers
- When the debt pool is active: 50% will go to the debt pool, 10% will go to the ecosystem fund and 40% will go to the ARTHX stakers
- When the debt pool is fully paid off: 10% will go to the ecosystem fund and 90% will go to the ARTHX stakers
Once discussed the proposal will go live for a vote on Monday Aug 9th at 3pm GMT and the vote will last for one day.
- Approve with Ecosystem Fund
- Approve without Ecosystem Fund