mStable has a system token, Meta (MTA), with four core functions:

1. Payment of Redemption Fees for all mAssets. See below

2. Coordinate decentralised governance​

3. Incentivise bootstrapping of mAsset liquidity, utility and a community of Governors

4. As the ultimate source of re-collateralisation​

Payment of Fees

MTA’s utility derives from its first function - the payment of redemption fees. The fee will be:

• Set by Governance; and

• Calculated as proportion of the mAsset’s value during at redemption. For example, if the fee is 50 basis points, redeeming 10,000 mUSD would incur a fee of 50 mUSD converted to and paid in MTA using a price feed provided by the system’s oracles

Redemption demand for mAssets (and fee volume) will be driven by:

• Demand across all mAssets

• Arbitrageurs redeeming when spreads exists

• SDK integrations

The fee, paid in MTA, will be abstracted away in the UI. This avoids unnecessary friction for the protocol’s users.

The MTA accumulated from redemption fees is transferred to a pool that will ultimately be paid to Meta Governors in return for their work and risk. See Governance.