INTRODUCING THE MOUND (MND) VAULT
Hello Bunny Fam! 🐰🐰🐰
Team Bunny would like to thank all of you in the PancakeBunny Community for your positive feedback and encouragement regarding our Recovery Plan and during the ongoing launch of our Polygon launch! (If you are interested in providing liquidity and receiving polyBUNNY on Polygon, please check out our Pre-Launch Liquidity event at polygon.pancakebunny.finance.)
Also, thank you for your patience as we prepare to launch the next component of our Recovery Plan, the Mound Vault and the MND token! Please stay tuned for further details as we approach the launch of the Mound (MND) Vault, which is currently targeted for 02:00 on 28 June 2021 (UTC).
In the meantime, and without further ado, please read below our overview of the purpose and logistics of the Mound (MND) Vault, and join the conversation in our official channels which are listed at linktr.ee/pancakebunny.
Please brace yourselves as you prepare to read this blog post, as the explanation of each of the Mound Vault’s moving parts is necessarily detailed, but we hope that the Community will appreciate that we have done our utmost to make as many of the steps as explicit as possible.
And remember, as always, Fam, Keep Calm and HOP ON!
1. The Purpose of the Mound (MND) Vault — Driving Ecosystem Recovery
Over the past month, we at Team Bunny have greatly increased our development capacity and carefully monitored the effects of our post-attack stabilization efforts under conditions of considerable market uncertainty and instability. (See Go Forward Plan here.)
Based on our ongoing analysis, we have determined that incremental, micro-tokenomic adjustments are ineffective during the current market downturn, and that PancakeBunny’s recovery requires the injection of significant macro-tokenomic value into the PancakeBunny ecosystem. (See Recovery Plan here.)
With our substantial increase in development capacity, Team Bunny is now well-positioned to deliver all of the components of ecosystem expansion on a significantly accelerated timeline in order to maximize value to the PancakeBunny Community in both the immediate and long term.
The remainder of this article is devoted to further describing the value captured by the Mound Vault, how it operates in conjunction with the MND utility token, and an overview of the logistics of how to receive MND tokens.
2. The Mound Vault Delivers the Value of Ecosystem Expansion
The Mound Vault is a vehicle created to capture and distribute the full value of our ecosystem expansion directly to the PancakeBunny Community. In other words, the Mound Vault is designed as a means for the PancakeBunny Community to share in the full value of all of the innovative DeFi projects/products that Team Bunny has to offer, now and in the future.
In addition to the core value of BUNNY and the PancakeBunny platform today, the Mound Vault captures the value of three new ecosystem drivers for direct distribution to the Community, namely:
- Expansion on Polygon and future chains;
- Provision of safe and commoditized lending-as-utility and swapping-as-utility on BSC; and
- Innovative cross chain and in chain fee-based products, such as our Multiplexer and Inverse/Leverage products.
2.1. What Goes Into the Mound Vault?
As originally announced in our Recovery Plan, the Mound Vault will consist of the following components:
- 1 Million of the Team’s BUNNY (the 1 Million BUNNY minted to the Team by the attack);
- 1 Million of the Team’s polyBUNNY (the first 1 Million polyBUNNY minted to the Team);
- 100 Million QBT (10% of the total anticipated supply);
- all of the farming returns generated by the above assets;
- an optimal share of all new project tokens (to be determined as new projects come online and as optimal for both the projects and the ecosystem); and
- an optimal share of fees from all current and future fee-based products (e.g. Cross Chain and In Chain Multiplexers, Inverse/Leverage tokens, etc.)
2.2. What Is the MND Token?
The MND token is a fixed-volume utility token associated with and backed by the total value of the Mound Vault. It is NOT a protocol token that is minted over time by block or by transaction.
- As the PancakeBunny ecosystem recovers — at first, from time-to-time, and later, on an ongoing basis — MND holders will be able to claim their share of the accrued returns and fees generated by all of the assets held in the Mound Vault. (Currently Team Bunny is targeting approximately 4 weeks after launch for first opportunity to claim.)
- Within approximately 24 months, MND holders will be able to vote on whether the Mound Vault will release some or all of the assets held in common to the MND community. The precise mechanism is yet to be determined, but the effect would be similar to using a swapping mechanism to swap MND in exchange for assets held by the Mound Vault, or using a claiming mechanism similar to the operation of the pBUNNY Compensation Pool. The question of whether the Mound Vault should buy MND to reduce the supply on the open market, as for popular deflationary tokens, will also be considered at that time. These measures will not be taken until PancakeBunny has sufficiently recovered and/or there is sufficient liquid in the open market for MND.
- If MND is not yet being traded in the open market in 6 months, Team Bunny will consider measures to provide liquidity so that MND can be traded against BNB and other tokens.
2.3. Team Bunny Contributions — Setting Up the Mound Vault
Team Bunny will set up the Mound Vault according to the following process. First, Team Bunny will create the Mound Vault and contribute the 1 Million BUNNY that was minted to the Team by the attack. Team Bunny will also begin contributing all of the polyBUNNY that is being minted to the Team by the Polygon fork, up to a total of 1 Million polyBUNNY. Finally, Team Bunny will contribute 100 Million QBT tokens when Qubit is launched, or approximately 10% of the total supply.
2.4. Swap BUNNY Into the Mound Vault to Get MND Tokens — Overview of the MND Launch Event
In parallel with setting up the Mound Vault, Team Bunny will hold a Mound (MND) Vault Launch Event for the PancakeBunny Community. During the Swap Period, the PancakeBunny Community will be able to swap BUNNY into the Mound Vault to receive MND according to the following mechanism.
WEEK 1 — Swap at 1.50x
BUNNY holders will begin to swap BUNNY into the Mound Vault. BUNNY that is committed during WEEK 1 will be assigned 1.50 Allocation Units for a multiple of 1.5x.
WEEK 2 — Swap at 1.25x
BUNNY that is swapped into the Mound Vault in WEEK 2 will be assigned 1.25 Allocation Units for a multiple of 1.25x.
WEEK 3 — Swap at 1.10x
BUNNY that is swapped into the Mound Vault in WEEK 3 will be assigned 1.10 Allocation Units for a multiple of 1.10x.
WEEK 4 — Swap at 1.00x
BUNNY that is swapped into the Mound Vault in WEEK 4 will be assigned 1.00 Allocation Units for a multiple of 1.00x
At the end of the Swap Period, a certain fixed number of MND will be minted. (The current target is 1 Million MND.) Each user will receive a number of MND equal in proportion to the ratio of their Allocation Units versus the total number of Allocation Units assigned to the Community.
- Suppose you swap 200 BUNNY in WEEK 1, 200 BUNNY in WEEK 2, 100 BUNNY in WEEK 3, and 100 BUNNY in WEEK 4, for a total of 600 BUNNY.
- Then at the end of the Swap Period, you will have been assigned 300 + 250 + 110 + 100 = 760 Allocation Units for your total of 600 BUNNY.
- Suppose the total number of Allocation Units assigned to the Community is 4.85 Million.
- Then you would receive the following number of MND:
Number of MND = 1 Million MND * (760 / 4.85 Million) = 760 / 4.85 = ~156.7 MND
So in the above example, subsequent to the minting and distribution of the 1 Million MND, the user would have ~156.7 MND in their wallet. In other words, the user would have effectively “swapped” their 600 BUNNY for ~156.7 MND. This is around ~40 MND more than if the user had swapped all of their BUNNY in WEEK 4.
2.5. pBUNNY-for-MND Conversion
As many pBUNNY holders have noted with the drop in TVL to current levels, the amount of value accruing to the Compensation Pool has decreased significantly. Team Bunny has been tracking the decrease in compensation rate closely, and has determined that the original mechanism implemented for the Go Forward Plan is no longer effective.
Consequently, in order to ensure the compensation of pBUNNY holders moving forward, pBUNNY will be converted to MND at the end of the Swap Period according to the following mechanism:
- The Effective Price of MND will be set as EP = (Total Value of BUNNY swapped into the Mound Vault / Total Number of MND)
- The Total Value of the Team Contribution will be calculated as TV = the total value of the Team contribution of 1 Million BUNNY, 1 Million polyBUNNY, and 100 Million QBT at market prices at calculated at the end of the Swap Period
- Based on the EP (Effective Price of MND) and the TV (Total Value of the Team Contribution), pBUNNY holders will receive a pro rata share of the total MND minted for pBUNNY conversion.
- Suppose the total value of BUNNY swapped for MND = $30 Million
- Suppose the total number of MND swapped for BUNNY = 1 Million
- Then the Effective Price of MND = EP = $30
- Suppose, at the end of the Swap Period, the total value of the Team contribution = TV = $15 Million + $10 Million + $5 Million = $30 Million
- Then all of the pBUNNY will be converted into a number of MND = TV / EP = $30 Million / $30 = 1 Million
2.6. Total MND Calculation
Based on the above examples, it is possible to calculate the Total Number of MND at the end of the Swap Period. Note that, as for all of our projects, the Team will receive an allocation of 15 MND for every 100 MND exchanged for BUNNY and pBUNNY.
- Suppose 1 Million MND is minted to swap for BUNNY and
- suppose 1 Million MND is minted to convert pBUNNY;
- then an additional 0.3 Million MND will be allocated to the Team and
- the Total MND at the end of the Launch Event will be 2.3 Million MND, representing a total value of approximately $60 Million in assets (based on the above examples).
3. Concluding Remarks
For all of you who have had the fortitude to make it here to the end, congratulations! And thank you, as always, for your steadfast support and encouragement. Please be sure to share your feedback, comments, and questions in all of our official social channels. And please stay tuned for further details on polyBUNNY tokenomics and the launch of Qubit, our lending-as-commodity project. And finally please remember, as always — Keep Calm and HOP ON!