As mStable's mAsset supply is bootstrapped, the early contributors who mint these mAssets will be directly rewarded in proportion to their minting volume. Every month, 50% of the public reward pool has been allocated toward these minting incentives.
This has the two fold effect of rapidly growing mStable's liquidity as well as creating a wide-spread base of Meta holders — two mission critical components of mStable’s long term success.
These minting rewards reduce over time in line with the total rewards pool, increasing in the first year, then gradually declining over time.
A user Mints 1000 mUSD with any underlying stablecoin (DAI, USDC, USDT, etc.). In that month, a total value of USD1,000,000 in mUSD has been minted (assume mUSD is the only live mAsset), and the minting reward pool tranche for the month is 200,000 MTA.
As the user accounts for 0.1% of all minting volume for the month, they are able to claim 200 MTA from the rewards pool that month. Once claimed, these rewards become available for redemption after 1 year.
Reward: 200 MTA payout with 1 year lock up