Genesis Staking

Overview

Genesis Staking utilizes the Voted-escrowed Staking Model of $MKL with enhanced rewards for early adapters of Merkle Trade who are willing to lock-up their tokens in the intial price discovery phase.

Who Can Participate?

Anyone who participated in trading seasons S0-S18 or the pre-TGE MKLP incentive program is eligible to take part in Genesis Staking. By staking preMKL, users earn veMKL tokens, you will be able to receive protocol revenue and have access to other exclusive benefits on Merkle Trade. This model ensures that participants are incentivized to support the protocol’s long-term growth.

Genesis Staking Highlights

Staking Period: July 25th to September 5th

Participation: Stake and lock up MKL for up to 1 year. Minimum lockup will be Sep 19th or later, which means the earliest unlock date will be Sep 20th (min. 6 weeks for day 1 participants, 2 weeks for the last-minute participants joining on Sep 5th).

Target Audience: Existing users looking to secure MKL positions while earning real yield from the protocol and extra rewards from the Genesis Reward Pool.

Rewards:

1. 50% of weekly governance fund revenue (remaining 50% is allocated to the protocol treasury, which currently functions as both an insurance fund and a source of protocol-owned liquidity)

2. Genesis Reward Pool

• Genesis Rewards will be distributed on September 20th.

• The governance fund portion of protocol revenue from June (up to $200,000) will be dedicated to the Genesis Reward Pool, rewarding Genesis Stakers for their early contributions to stabilizing token velocity during the critical price discovery phase.

• To optimize reward distribution, a tiered allocation model will be implemented based on the veMKL supply. Initially, $50,000 will be provided until 1% of the veMKL supply is reached. For every additional 0.1% increase in total veMKL supply (based on the highest veMKL supply level achieved), the reward will increase by $5,000, up to the maximum allocation of $200,000.

How to Participate in Genesis Staking

Participating in Genesis Staking is straightforward:

Stage 1 — The Genesis Staking Period

Preparation: Ensure you have preMKL tokens. Participate in Merkle Trade seasons.

Stake preMKL Tokens: Visit the Merkle Trade platform, navigate to the ‘MKL Staking’ tab under the ‘Earn’ section, and stake your preMKL tokens for your chosen lockup period.

Earn veMKL Tokens: Receive veMKL tokens based on the amount staked and the lockup duration.

• The longer the lockup period (up to 1 year), the more veMKL tokens you will receive for the staked amount.

• veMKL tokens gradually decay as the due date approaches.

Stage 2 — Token Launch and Rewards Distribution

Weekly Revenue Share: Earn your share of 50% of weekly governance fund revenue based on your veMKL holdings.

Genesis Reward Pool: Earn your share of the Genesis Reward Pool based on your veMKL holdings.

Stage 3 — Post-Staking Vesting

Withdrawal: Users can withdraw their original MKL tokens, converted from preMKL tokens, once the lockup period expires. At this point, their veMKL tokens will have decayed to zero.

Genesis Staking v.s. Post TGE Staking:

• Genesis Incentives: Genesis Staking offers enhanced incentives, including up to $200,000 in additional rewards from the governance fund portion of June’s protocol revenue, dedicated to early contributors.

• Lockup Period: The minimum lockup for Genesis Staking is September 19th, so 6 weeks for day 1 participants and 2 weeks for those joining on September 5th. This means that the earliest unlock date will be Sep 20th.