$MINomics V2 is a series of changes to strengthen the use case of $MIN within the Minswap protocol. The first of these changes is deciding on the future of the Fee Switch.
The Fee Switch refers to the 0.05% of swapping fees paid on the DEX currently used to zap that $ADA into $MIN/$ADA LP Tokens going to the DAO Treasury.
The 3 Options being proposed for the vote are:
- Option 1: to redirect Fee Switch $ADA towards acquiring other Assets such as Cardano stablecoins or “blue chip” Cardano assets. This would diversify and grow the DEXs Protocol Owned Liquidity (POL). If this Option is chosen, it would be necessary to conduct a second vote to structure which assets are focused on.
- Option 2: to redirect Fee Switch $ADA towards $MIN stakers. $MIN stakers would "soft-lock" their $MIN for a time period (1,3,6,9 months) and obtain $ADA rewards generated from the Fee Switch (with a higher boost on the rewards for longer staking periods). The $MIN staked could be unstaked anytime, but early unstaking would mean forfeiting rewards. Forfeited rewards would be distributed to other $MIN stakers.
For a deeper insight into this mechanism as well as a projection of how $ADA yields for staking $MIN would look like, please see the Forum Post and the $MIN staking $ADA APR calculator
- Option 3: to keep focusing the Fee Switch towards accumulating MIN/ADA LPs. This option would be to continue prioritizing the $MIN/$ADA LP through the “soft-buyback” mechanism where $ADA from the Fee Switch is used to Zap into this Pool periodically.
