Initial Network State

The centre of attention from many community members at an early stage comes down to $MAMA's price volatility. It should be clear that our network is designed to increase supply. The main tradeoff is volatility and profitability versus stability and consistency. With volatility and profit comes growth; this is what we want early on.
The MAMA team understands that in our growth stage, volatility is expected based on market sentiment, and therefore it is important for individuals to perform their own research (DYOR).
Overtime, volatility can be mitigated through staking (3,3) - an increasing share combined with a defined price floor means that there is a level at which profit becomes a mathematical certainty, assuming sufficient profits are generated by bond sales.
With tight policy and scale, MAMA should function well as a stable asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, MAMA has the potential to act as a wealth creation machine. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created.

Alpha State

The initial network features a one-way treasury (money goes in, none comes out), the bonding contract (through which supply increases and profits are produced), and the staking contract (where profits are distributed).
The following are the initial policy states:
  • BCV (Bond Control Variable)
    BCV varies based on bond types. It is tuned regularly by the Policy team to meet the protocol goals. For example, if the protocol wants to accumulate more liquidity into its treasury, it can lower the BCV (meaning higher discount for bond holders) for liquidity bonds to increase their bond capacity.
  • Bond vesting term
    It is set to 86400 * 5 seconds = five days for all bond types.
  • MAMA distribution
    Every time someone purchases a bond, the proceeds will go to the MAMA treasury. A corresponding amount of MAMA will be minted and distributed to three parties:
    • Bonder
      The bond purchaser will receive the quoted amount of MAMA linearly over the vesting term.
    • DAO
      The DAO receives the same amount of MAMA as the bonder. This represents the DAO profit.
    • Stakers
      After accounting for the MAMA distributed to the bonder and the DAO, the rest will be distributed among all stakers in the protocol.