Governance Through NFTs & Token
Last updated
Last updated
Multipool's governance model is designed to ensure a fair and balanced representation of the key stakeholders in the protocol. This is achieved through the issuance of unique non-fungible tokens (NFTs) to the Core Contributors and the top participants in the Pioneers Sale alongside $MUL tokens.
The governance structure grants 30 votes to MUL token holders, based on the total possible circulating supply of 50 million MUL, excluding the treasury balance. Full voting power is achieved when all circulating tokens, minus the treasury holdings, are cast in a vote.
Core contributors to the Multipool protocol are issued 30 unique NFTs. Each NFT represents 0.5% of the total token supply, aligning with the 15% allocation to the Core Contributors. These NFTs, known as Core Contributors NFTs, grant each holder one vote in the protocol's governance.
The top 30 participants in the Pioneers Sale are also issued unique NFTs, known as Pioneers NFTs. Each Pioneer NFT grants the holder one vote in the protocol's governance. However, to exercise this voting right, the holder must retain a minimum of 250,000 $MUL tokens, equivalent to 0.25% of the total supply for $MUL. If a Pioneer NFT holder does not meet this requirement, their vote is transferred to the $MUL token holders, who vote on their behalf.
The transfer of Core Contributors NFTs is regulated through a dedicated smart contract to ensure the right of first refusal for other Core Contributor. If a Core Contributor wishes to sell their NFT, they must do so through this contract. The selling Core Contributor places their NFT into the contract, and the prospective buyer deposits the agreed price into the contract as escrow. Other Core Contributors are then given a fixed time period to match this price and purchase the NFT. If another Core Contributor chooses to purchase the NFT, the original buyer's escrowed funds are refunded, and the NFT is transferred to the purchasing Core Contributor. If no Core Contributor chooses to purchase the NFT within the fixed time period, the original buyer can claim the NFT at the end of this period.
Pioneers NFTs, on the other hand, have no such transfer restrictions. The only requirement is that the NFT and the minimum required MUL tokens must be held in the same wallet.
This unique NFT-based governance model ensures a balanced representation of the key stakeholders in Multipool's governance, fostering a democratic and inclusive decision-making process.
