Title: SYRUP Token Launch and MPL <> SYRUP Conversion
Authors and contributors: Maple Core Contributors
Overview: MIP-010 proposes the launch of SYRUP token, the conversion of 1 MPL to 100 SYRUP, and the introduction of SYRUP staking. This MIP contains the rationale behind the token conversion, the mechanisms for token utility, and details on the technical transition.
Rationale
The approval of MIP-009 recapitalised the Maple Treasury in order to support commercial growth initiatives. To fuel its next wave of growth, Core Contributors have launched syrup.fi - the DeFi lending protocol giving the Maple community access to its core product - and are proposing the introduction of the SYRUP token. As part of the proposal, MPL holders will be able to convert 1 MPL for 100 SYRUP, making the protocol’s governance token more accessible for new community members.
On the back of recent growth in both Maple and Syrup, Core Contributors are also proposing the implementation of staking rewards, enabling stSYRUP holders to participate actively in the Maple platform.
Tokenomics & Value Accrual
The MPL tokenomics were designed to enable MPL token holders to participate in the growth of the protocol and to steer the direction of the protocol through governance.
As part of MIP-010, the Maple team is excited to reintroduce staking rewards. Fee revenues generated from Maple’s and Syrup.fi’s lending operations will be used to buy back the SYRUP token which will form part of the token emissions that go to stakers.
In the first 90 days after token launch, a fixed amount of SYRUP will be earmarked for SYRUP stakers. This will ensure that all early stakers are incentivised with a staking yield for participating actively in the governance of the protocol.
As part of its strategic expansion, the community will have the opportunity to participate in the growth of the platform and help steer the protocol through governance. As such, Core Contributors are proposing a conversion of 1 MPL to 100 SYRUP. The split is expected to accelerate the distribution of SYRUP tokens, by presenting a more approachable option for newly-onboarded holders. With the increase in token supply, there will be no change in dilution for existing holders.
The wider crypto community has propelled a narrative of Maple’s role at the intersection of digital assets and RWAs, particularly in the sector of tokenized private credit. This narrative has high velocity, as it is backed by increasing participation from the world’s leading banks, lenders and asset managers. In order to accelerate the recent growth, a token split is being implemented to broaden the token holder community and make it more accessible to those new to DeFi.
Technical Details of Conversion
As the SYRUP token contracts have been developed and audited (details can be found here), the following steps will take place to facilitate the conversion:
- The SYRUP contracts will mint approximately 1.15 billion SYRUP.
- Annualised recapitalisation would follow the same schedule as passed in MIP-009; all issuance from the initial schedule will also be minted as SYRUP tokens, broken down as follows:
- 1,000,000,000 (new SYRUP supply)
- 100,000,000 (initial 10% from inflation schedule)
- 54,930,000 (from inflation schedule till 1st Oct 2024)
- Annualised recapitalisation would follow the same schedule as passed in MIP-009; all issuance from the initial schedule will also be minted as SYRUP tokens, broken down as follows:
- The Migrator contract will be deployed to allow MPL users to convert to SYRUP.
- Staked SYRUP will be a redeployment of the same xMPL contract that has been audited previously (details can be found here) with a new name and symbol (Staked SYRUP / stSYRUP)
The transition would take place with the aim to have the lightest lift for token holders. MPL & xMPL holders would simply have to come to the Syrup webapp and follow the prompts to convert MPL for SYRUP. Below is a breakdown of the scenarios for MPL and xMPL holders.
MPL holder
There’s one conversion contract which has 1.15 billion SYRUP minted to it. A MPL holder would interact with that contract to convert MPL to SYRUP at a ratio of 1 to 100.
To do so, MPL holders would come to the Syrup webapp and follow the prompts to convert legacy MPL for SYRUP.
Diagram shows how the conversion from MPL to SYRUP would work at a smart contract level
xMPL holder
An xMPL will be able to come to the Syrup webapp and in one transaction be able to migrate their tokens to either SYRUP or Staked SYRUP using a utility contract developed by the Maple Labs Core team.
Diagram shows how the conversion from xMPL to SYRUP/stSTYUP would work at a smart contract level
Impact
Building on the reignited growth from the introduction of Syrup protocol, the proposed changes of MIP-010 are expected to help strengthen and expand the community by making SYRUP more accessible.
Should MIP-010 pass, further details and timeline of the launch and conversion will be communicated.