What is MIR

What is MIR

Mirror Token (MIR) is the control token of the Mirror Protocol. As of right now the token has to be staked to take part in active polls and has to be deposited if the user wants wants to host a new poll for protocol activity control. In future versions of Mirror it’ll serve more purposes within the protocol, which will increase its value and versatility.

Users sending MIR to stake also get rewards in MIR, received from fees for CDP supply withdrawal within the protocol.

MIR is also used as a reward for staking of LP tokens, which must be received from liquidity provision in the mAsset-UST or MIR-UST pools. LP token stakers receive rewards from the MIR tokens minted according to the four-year distribution plan.

MIR token distribution

It’s planned that over the course of 4 years 370 575 000 MIR tokens will be distributed. No more tokens will be minted after that.

Token distribution chart (in millions)

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On Mirror Protocol’s creation 54.9M tokens were distributed:

  • UNI Airdrop: 16.66% (9.15M) of the tokens were given to UNI holders
  • LUNA staker airdrop: 16.66% (9.15M) of the tokens were given to LUNA stakers
  • Community Pool: 66.66% (36.6M) of the tokens were distributed to the community pool

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The total amount of MIR will increase over 4 years, until the total amount reaches 370.575 million.

The distribution structure by the end of the fourth year will look as follows:

  • Airdrop: the airdrop sum, which was originally distributed between UNI holders and LUNA stakers, will consist of 4.9% (18.3M) from the total amount
  • LUNA staking reward: 4.9% (18.3M) will be given out to Luna stakers over the course of a year after the launch of Mirror Protocol (not the genesis). MIR will be distributed every 100 000 blocks (approximately once a week) to LUNA stakers, starting with the 920 000th block. There will be a snapshot every 100 000 blocks to determine who has the right for staking reward distribution.
  • mAsset LP Staking: 45.1% (167.27M) of the tokens will be distributed to all mAsset (on Terraswap) and mAsset (on Ethereum) pools at the end of the fourth year. Tokens will be distributed daily to every pool (initially 13 pairs for every Mirror and mETH) depending on their weight compared to other assets.
  • MIR LP Staking: 10.4% (38.6M) of the tokens will be consistently distributed between the MIR-UST and MIR-UST (mETH) pools by the end of the 4th year. The MIR-UST pair has an initial weight of 300%, which surpasses the initial mAssets weight by 3 times. Tokens are distributed daily.
  • Community Pool: 34.6% (128.1M) of the total MIR volume will be distributed to the community pool by the end of the fourth year

Staking rewards

In this section MIR staking rewards are described, coming from trading fees, used to buy out MIR from the market. Staking of LP tokens also generates MIR rewards, which come only from fresh MIR tokens, created with every block.

Protocol fees

MIR token stakers receive rewards for every block in the form of MIR tokens, which generate from the protocol fee on CDP withdrawal. The protocol fee is taken from the CDP deposit and sold for TerraUSD (UST) to buy MIR using Terraswap. Then the MIR tokens are distributed as rewards to MIR stakers proportionally to their percentage of the total stake.

Poll creation fees

Every time a control poll is created it’s necessary to make an initial deposit in MIR. If the poll doesn’t reach the quorum, the deposit is distributed amongst all MIR stakers proportionally to their share of the total stake.

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