🌙Moonshare Rewards & Distribution

Moonshare Token (Moonshare) Rewards and Distribution

The Moonshare Token serves as the incentive token for the MoonYield protocol. It is designed to enhance protocol stability by rewarding users in the stability pool.

Role of the Moonshare Token:

Incentive: Distributed to reward active participants who contribute to the protocol's health and growth.

Distribution Mechanisms : Moonshare tokens are distributed through the following channels: a) Stability Pool Rewards: Purpose: Incentivize users to deposit MUSD into the Stability Pool, which absorbs liquidated debt. Rewards: Stability Pool participants earn Moonshare tokens proportional to their MUSD deposits and the length of time they remain in the pool. Benefit: Encourages consistent participation in maintaining the system’s solvency.

b) Borrower Incentives: Borrowers who open and maintain healthy Vaults may receive Moonshare rewards as an incentive for contributing collateral to the system.

Reward Allocation:

The total supply of Moonshare tokens is distributed over several years to ensure a sustainable reward structure. Moonshare Tokenomics: Scarcity: The total supply of Moonshare tokens is capped to preserve value.

Emission Schedule: Rewards decrease over time, ensuring early participants are incentivized while promoting long-term stability. Market Utility: Moonshare can be traded, or staked Earning Moonshare Tokens: a) As a Stability Pool Depositor:

Deposit MUSD into the Stability Pool. Earn Moonshare tokens continuously as long as funds remain in the pool.

b) As a Vault Manager:

Open a Vault and borrow MUSD. Maintain a healthy collateral ratio to qualify for periodic rewards.

Incentive Alignment:

The Moonshare reward structure incentivizes: Stability: Rewards Stability Pool participants who actively support the protocol’s health.

Growth: Encourages adoption and usage of MUSD and the broader MoonYield ecosystem.