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# System prepended metadata

title: MPH tokenomics overhaul

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# MPH tokenomics overhaul

## Vesting period = deposit period

Currently, depositor MPH rewards are vested in 7 days regardless of how long the deposit period is. This creates a problem where users could deposit for the maximum possible period (1 year), get a lot of MPH in 7 days, and dump.

By making the vesting period equal the deposit period, we would make sure that the rate of rewards is constant regardless of how long a user deposits for.

### Action items

- New MPHMinter contract
- New MPHIssuanceModel contract

## New staking pool

Currently, MPH staking rewards are distributed in DAI. It would be better if it was in MPH, because

1. MPH stakers are long term investors in the project, so giving rewards in MPH is more suitable.
2. We would generate buy pressure for MPH, since the reward distribution process would purchase MPH from the market.

It is also a good idea to make staked MPH an ERC-20 token, similar to xSUSHI. This would allow applications to easily integrate staked MPH (e.g. Cream)

There is a problem with this migration, namely stakers will need to spend gas to move their funds to the new staking pool. To mitigate this, we can take some MPH from the governance treasury and reward it to stakers in the new pool for the first week, which should cover the gas cost.

### Action items

- New staking pool contract

## Snapshot voting

Currently, MPH is not being used as a governance token. By granting governance power to MPH holders, we would add value to the token and better align the project's direction with what the token holders want. It would also allow us to better engage with our community and ask for collaboration from our partners.

It would be a good idea to use quadratic vote weighting to ensure that the governance process is not dominated by whales. Quadratic voting requires an anti-sybil mechanism, such as BrightID, but this can cause friction in onboarding users to the governance process, so in the beginning we can do without one and introduce one later on.

### Action items

- Set up snapshot voting page
- Bootstrap the governance forum