Alchemist

MIP-1: MIST Tokenomics, A Proposed Catalyst for Growth

The details of the new tokenomics proposal are as follows:

1. Redirect the MIST inflation currently sent to existing MIST-WETH LP stakers to instead go to the Alchemist Multisig for the sole purpose of funding and incubating new products.
2. Redirect up to a maximum of half of the revenue airdrop going to MIST-WETH LPs Rewards to go to single-sided MIST stakers in a new rewards program called “Community Harvest Alchemist Distribution (CHAD)” aka “CHAD Stakers Rewards”. The proportion of revenue redirected is variable and will be determined by the proportion of single-sided MIST being staked relative to current free-floating MIST supply. Rename the Aludel Rewards for MIST-WETH LPs as “CHAD LPs Rewards”.
3. Revenue airdrops for both CHAD rewards programs would be airdropped in the currencies that they are earned in, rather than MIST. Historically these native tokens would include USDC, ETH, WETH.
4. To be eligible for CHAD Stakers Rewards, one’s tokens need to be locked in the CHAD program for a minimum period of 90 days. Withdrawing a stake prematurely will result in the forfeiture of any rewards earned.
5. Before revenue airdrops are distributed, analysis of the free-floating MIST supply will be undertaken and distributed according to the threshold levels laid out in the table below. Establishing which threshold has been reached will be performed on a monthly basis. The Alchemist Council will monitor participation in the rewards programs and reserves the right to make adjustments to the thresholds and splits within it in order to promote a healthy balance between MIST-WETH LPs and single-sided MIST stakers.
6. Governance will be limited to individuals participating in either CHAD Rewards program (Staking LP or Staking MIST) and will be proportionally split between these two groups based on the amount of revenue received. For example, if CHAD LP stakers are receiving 75% of the allotted revenue for stakers and CHAD MIST stakers are only receiving 25% of the revenue then CHAD LP stakers will have 3x the governance power. If both groups were receiving 50% of allotted revenues (equal split) then they would have the same governance power.

The following are the proposed single-sided staking levels to unlock the revenue redirection from CHAD Rewards for LPs to CHAD Stakers Rewards. This can be thought of as a coordination game between single-side MIST stakers. The Based Alchemist Games (BAGs) have four levels that lead up to the climax of the game (ie. max rewards per % of free-floating MIST staked).

BAG Levels	% of free-floating MIST staked in Crucibles	% of revenue airdropped to CHAD LPs	% of revenue airdropped to CHAD Stakers
Default	0 - 29.99	47.5	2.5
1st Base	30 - 44.99	45	5
2nd Base	45 - 59.99	42.5	7.5
3rd Base	60 - 69.419	35	15
4th Base	> 69.420	25	25

The full proposal can be viewed at: https://discourse.alchemist.wtf/t/mip-1-mist-tokenomics-a-proposed-catalyst-for-growth/118

After passing polling within the Discourse with overwhelming support in favor, the proposal is now moving to a snapshot vote.

Voting Process

MIST - All MIST tokens you hold in your wallet and/or Crucible added together. MIST/WETH LP - Your liquidity provision tokens equated to the number of MIST tokens, e.g. 1 MIST/WETH LP = 59 MIST.

This means that token holders and liquidity providers are treated equally and are all able to vote no matter if they hold their coins in a Crucible or wallet. The vote will be conducted quadratically, allowing users to spread their voting power as they see fit.