MidgardFinance Docs
  • Getting Started
    • What is Midgard Finance
    • AI Kills DAO
  • Basics
    • MID
      • What is MID
      • How MID is Issued
      • Design Principles and Value Backing
      • MID Supply Adjustment
      • Bonding
      • Use Cases Within the Ecosystem
      • pMID
      • Simulation
    • AI Governance Model
      • AI Agents Orchestration
      • Data Inputs and Decision Variables
      • Mathematical Formulations and Models
      • From Human-Centric DAOs to AI Governance
    • Staking
      • Redemption
      • Staking
    • Treasury
      • The Treasury’s Core Role
      • Buybacks and Provide Liquidity
    • Equation
    • (3,3) Dogma
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  • Core Principle
  • Initial Issuance: pMID Conversion
  • Issuance Mechanisms
  1. Basics
  2. MID

How MID is Issued

PreviousWhat is MIDNextDesign Principles and Value Backing

Last updated 3 months ago

Core Principle

MID issuance is fundamentally transparent, equitable, and anchored to stable collateral. Over the long run, most MID tokens will enter circulation through bonding (exchanging assets for MID at a discount), staking (reward distributions to long-term participants), and the broader external market (trading on secondary exchanges). This ensures that MID’s value isn’t driven purely by speculation, but instead grounded in tangible economic actions and resources.

Initial Issuance: pMID Conversion

  • Early Stage Distribution: At the ecosystem’s start, MID is introduced via a clear, open process: 1 pMID = 1 MID.

  • Why This Matters: By coupling each newly minted MID with pMID backed by USDC at the initial stage, the protocol sets a foundation of trust and intrinsic value right from the beginning. This initial issuance—free from hidden allocations or closed pre-sales—demonstrates the project’s commitment to fairness and transparency.

Issuance Mechanisms

  1. Bonding: After the initial phase, bonding becomes a primary way to introduce new MID into circulation. Users deposit assets (like USDC, or interest-bearing stablecoins sUSDe, USDY) in exchange for MID at advantageous rates determined by AI-driven parameters. This ensures that additional MID entering the market is always linked to real assets, reinforcing the token’s value.

  2. Staking Rewards: Staking MID not only encourages long-term participation but also serves as another channel for MID issuance. Users earn new MID tokens as rewards over time, with APY levels adjusted by AI agents to maintain stability, manage inflation, and reward committed participants.

  3. External Market Interactions: As the ecosystem matures, the external crypto market also plays a role in MID’s distribution. Participants can buy MID from secondary exchanges, and AI agents may influence supply through strategic buybacks or controlled token issuance, always guided by data and market conditions.

Core Principle: MID issuance is designed to be transparent, equitable, and directly tied to stable collateral. By linking each newly created MID to a real, tangible asset, the ecosystem ensures that MID’s value is not based on mere speculation but grounded in genuine economic substance.