The Mangata X crowdloan is coming closer and closer. Following our Mangata X Announcement, one of the most common questions was around Tokenomics and details on the Crowdloan.
After we have released an in-depth article on Mangat X Tokenomics, we now proceed to share details on the upcoming crowdloan. As is common, we will bid for a full slot period of 48 weeks.
What is a Crowdloan?
To launch Mangata X into the Kusama ecosystem, it needs to run on a Parachain. Only 100 Parachain slots exist on Kusama. That is why Parachain slots are auctioned off to win a slot lease. To win an auction, competing Parachains bid with KSM. The highest KSM bid of the winning Parachain gets bonded (locked) for the slot lease duration. The bonded KSM is released after the end of the lease period.
To fund the slot lease, projects can perform crowdloans. A crowdloan is a trustless mechanism for the community to participate in a slot auction and support their project. The community can bond KSM to support the crowdloan. In return, the community will get an airdrop of the parachain’s native tokens. This is generally considered to be rather risk-free, as the only risk that applies is Kusama protocol risk. The KSM is returned either after the successful conclusion of the lease period (about 48 weeks) or after the failed crowdloan period. (about 5 weeks)
The reward pool
Our Tokenomics are offering 8.25% of the final supply as Crowdloan rewards. Our goal is to become a self-funded parachain within 4 years by growing the Mangata X treasury and accumulating enough KSM to become stable long-term. To match those plans, we offer a declining share of the final supply of 3.5%, 2.5%, 1.5% and 0.75% for the 4 upcoming Crowdloans.
This means that the first Crowdloan will award 140,000,000 MGX as rewards. This equals 10% of the circulating supply after a year.
Emission Schedule: Out of those 140m MGX, 30m MGX (~21%) will be minted and made available at TGE. The remaining 110m MGX will be vested over the remainder of the slot duration. It will be minted and become claimable every epoch.
Crowdloan Rewards & Bonuses
Parachain Slot Auctions have seen declining prices over the previous weeks and the last auctions closed for slot prices between 7k and 10k KSM. This is why we have decided to set a comparatively low KSM cap of 14,000 KSM. This allows us to guarantee a minimum base reward of 6,250 MGX per KSM contributed. We are giving out the full 140m MGX. This means that if the Crowdloan cap is not reached, the relative reward will become bigger.
Assuming that the circulating supply of 1.35b MGX at a market cap of 10m USD after one year, this would give a return of 46.3 USD per KSM contributed. At 100m USD market cap, the return would be 463 USD.
Additionally, we are giving out 2 bonuses: A Referral Bonus and one of two community bonuses.
Bonus 1: Referral Bonus: 5%/5%
We decided to apply the successful model of the referral program to attract a wider community and are offering 5% for referred users as well as that same bonus for referring users. Our Crowdloan page will offer the possibility to create a referral link.
Bonus 2a: Active Kusama DEX User receive 30% bonus
Users trading on Kusama Parachains are exactly the type of early adopters that Mangata X stands for: Willing to take the risk in this rising ecosystem. To give you an additional incentive to check out Mangata, we are offering a 30% bonus, pushing the minimum reward to 8,125 MGX per KSM contributed.
We will be querying the blockchains for active users of selected DEXes and make this list available soon for you to check if you are eligible.
Bonus 2b: Early Mangata Community Members receive 50% bonus
You are the ones who believed in us when the others didn’t. You joined our Discord, participated in the discussions, listened to Mangata Monday, wrote blog posts and Twitter threads and so much more. Thank you! As your special Bonus, we will give you a 50% bonus, resulting in a minimum reward of 9,375 MGX per KSM contributed.
We took a Discord snapshot of existing Mangatarians and will be applying filters to select for users who meaningfully contributed in the Mangata Discord. Hang around in the upcoming days to find out if you are eligible and get further instructions.
Forward and upward: The Crowdloan Timeline
Our Crowdloan starts on Monday, 21st February, 2pm UTC. We will start bidding immediately. The Slot Auction will run 5 weeks and each week the highest bidder wins a slot. We are taking a relaxed stance and are ready to onboard whenever the market is.
A word of caution: While previous Slot Auctions closed below 14,000 KSM, we don’t know what the actual interest in the crowdloan will be like. This can mean that the cap will not be reached. But if it is reached, no further contributions will be possible. The Crowdloan works in a trustless manner and we cannot change it after we have initiated it. We want to see all of you get the allocation you wish for. So please make sure to participate in a timely manner.
Make sure to stay in the loop!
- Join the Mangata X Waiting List at x.mangata.finance
- Join the Discord
- Follow us on Twitter: @MangataFinance
May the Airwhale bless you with infinite rewards!
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