Ignition Phase: Announcing the Mars Protocol lockdrop and MARS token launch

Mars Protocol seeks bold explorers and pioneers.

MARS Governance Tokens

To succeed, Mars must become an open, decentralised, community-maintained financial commons. This requires giving all participants (users and builders) a governance system through which they can coordinate activity and decision-making so that Mars appeals to all of them. MARS tokens (and their staked version, xMARS) are an important piece of this puzzle.

The power of MARS

  1. xMARS provides voting power over Mars smart contract parameters and spending decisions regarding a decentralised MARS tokens treasury.
  2. xMARS rewards good governance with more governance power (additional MARS) and punishes poor governance with reduced governance power. Note that if the Mars smart contract system functions well, usage fees paid by users will accumulate, and MARS tokens will be automatically repurchased by the Mars smart contract system with these usage fees. If the Mars smart contract system does not function well, it may suffer shortfall events. In that case, staked MARS can be taken away from xMARS holders and given to users who suffered losses from the shortfall.
  3. Over time, because of how MARS is designed to be used within the Mars smart contract system, MARS and xMARS may become similar to decentralised shares in the value of the Mars smart contract system. This can also lead to MARS and xMARS gaining monetary value from the collective efforts of the community of Mars smart contract users and governance participants — however, because this result cannot be guaranteed, MARS and xMARS should initially be assumed to be completely valueless. MARS and xMARS can only gain value from participation by Mars smart contract users.

The MARS lockdrop

A lockdrop is a way to fairly distribute tokens to early community members by allowing them to temporarily ‘lock’ one token (in this case, UST) in exchange for a reward in the form of another token (MARS).

The Mars lockdrop timeline.
  1. Each lockdrop depositor will be able to claim MARS tokens calculated on a weighted pro-rata basis based on their UST amount and selected lockup period
  2. The lockdrop depositors will become Red Bank ‘lenders’ — i.e., all locked UST will be transferred to the Red Bank and can be ‘borrowed’ by Mars users through the Red Bank.
  3. In addition to the MARS claimable immediately due to participation in the lockdrop, as ‘lenders,’ the lockdrop depositors — like all other Red Bank ‘lenders’ — will also receive xMARS which accrue per block over their UST deposits in the Red Bank. This means that users who participate in the lockdrop will receive both MARS (claimable all at once upon conclusion of the Ignition Phase) and xMARS (accruing per block for as long as UST remains deposited in the Red Bank with a minimum period equal to the selected lockup length). Users who deposit UST directly in the Red Bank (i.e., who are merely ‘lending’, not also participating in the lockdrop) will only receive xMARS tokens on their deposits.
  4. As Red Bank ‘lenders,’ lockdrop participants will also receive additional UST as ‘interest’ on their locked UST.
  • The length of the lockup (the longer a user locks up their UST, the more MARS they’ll receive)
  • The total amount of UST deposited during the Ignition Phase

Join the mission to Mars

IMPORTANT DISCLAIMERS:

Authorship of this Paper. This paper has been authored by Pythia Orbiter 1, a Cayman Islands LLC, as the vehicle for a joint venture developing the Mars technologies (the ‘Mars Joint Venture’).

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Mars Protocol

Mars Protocol

Mars is a credit protocol for the Cosmos ecosystem. Official site: https://marsprotocol.io