Tokenomics
Meridian Stability Token (MST) is the secondary token issued by the Meridian protocol. It captures the fee revenue that is generated by the system and incentivises early adopters. All of the processes and functionality for the creation and distribution of MST are preprogramed and as such ownership of the token does not represent any claim on the development team.
Fee revenue earned by the Meridian protocol is distributed to MST holders that stake their MST in either the Staking Pool or the MST Super Staking Pool. USDM and ETH fees are earned in a direct ratio to the number of tokens staked by an individual user relative to the total staked by all users at the time the fee was earned.
MST Distributions
MST has a fixed total supply of 10,000,000 tokens which were minted on deployment to specific utility operations. The total minted supply is as shown below.
Community airdrop - 3,000,000 tokens distributed to OmniDex community members to encourage adoption of the Base Network and support of the Meridian protocol.
Stability Pool rewards - 3,000,000 tokens were minted to the protocol issuance distribution contract which manages the allocation over time of these tokens to users that support the Stability Pool.
Liquidity rewards - 2,500,000 tokens have been sent to the MLP Trading rewards contract and will be automatically distributed over time to users that provide liquidity via MLP.
Seed LP Funding - 500,000 tokens were used to provide the initial liquidity for the ETH-MST liquidity pool.
Team & Advisors - 1,000,000 tokens have been distributed to the developers and advisors of Meridian.
The MST airdrop
Prior to launching Meridian the development team created the OmniDex ecosystem of products on the Telos blockchain. OmniDex was founded in January 2022 and had established a loyal and committed community. Unfortunately during the second quarter of 2023 the Telos blockchain suffered a significant setback caused by the failure of the Multichain cross-chain provider and the OmniDex developers decided to pivot to a new blockchain with the launch of Meridian. However in doing so we wanted to reward the loyalty and commitment of the long time OmniDex community and it is this community that received the airdrop.
A snapshot of OmniDex CHARM holders was taken on 31 July 2023 and all wallets with more than 1000 CHARM were sent a share of the MST airdrop in proportion to their CHARM holding. The final airdrop was distributed across a total of 509 separate wallet addresses.
MST Circulating Supply at Launch
The circulating supply of MST at the launch of Meridian represented 45% of the maximum supply with the remaining tokens being distributed over time as incentives for early adoption.
Stability Pool Rewards
The distribution of MST to investors in the Stability Pool follows a yearly halving schedule, described by the following function: 3,000,000 * (1–0.5^year). The purpose of this issuance curve is to favourably incentivise early adopters while also maintaining incentives for the long term.
Liquidity Pool Rewards
The distribution of MST to investors in the Meridian Liquidity Pool follows a yearly halving schedule, described by the following function: 2,500,000 * (1–0.57^year). The purpose of this issuance curve is to favourably incentivise early adopters while also maintaining incentives for the long term.
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