# Proposal: Add 1.38M Airdropped $ARB Tokens to Protocol-Owned Liquidity (POL)

**URL:** https://forum.mux.network/t/proposal-add-1-38m-airdropped-arb-tokens-to-protocol-owned-liquidity-pol/125
**Category:** Proposal
**Created:** [August 11, 2023, 9:50pm UTC](https://forum.mux.network/t/proposal-add-1-38m-airdropped-arb-tokens-to-protocol-owned-liquidity-pol/125 "2023-08-11T21:50:37Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![dumbird\_MUX](https://yyz1.discourse-cdn.com/flex031/user_avatar/forum.mux.network/dumbird_mux/32/14_2.png) [@dumbird\_MUX](https://forum.mux.network/u/dumbird_MUX)
#### Post date: [August 11, 2023, 9:50pm UTC](https://forum.mux.network/t/proposal-add-1-38m-airdropped-arb-tokens-to-protocol-owned-liquidity-pol/125/1 "2023-08-11T21:50:37Z")

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## Background

Upon genesis, the MUX protocol used protocol-owned liquidity (POL) as its foundation. The initial POL came from funds raised from previous rounds; also, 30% of protocol income continuously went to POL.

By August 2023, MUX has been successfully run for one year. During the runtime, MUX has reached $13.6B organic trading volume, onboarded over 16K traders, reached over $58M TVL(third-highest in the perps sector), earned over $9.4M protocol income, and the POL has grown by around $4M. The outcome is uplifting, and POL has played a crucial role in supporting MUX to achieve these results for the following reasons:

- Serves as the foundation of the MUXLP pool to support trading demands.
- Binds with the governance token, veMUX’s share of income.
  - Total Protocol Income × 70% × POR(the rate of protocol-owned liquidity): Allocate for veMUX holders (in ETH)

- Funds the annual marketing budget to support monthly Twitter marketing & exposure activities, four airdrop campaigns, one trading competition, partnership-building activities, marketing contributor wages and additional marketing efforts.
- Serves as the safety fund to protect all LPs during black swan incidents. For example, during the Fantom incident caused by Multichain, POL bore $120K in losses to protect all LPs.

## Proposal

Based on the following context, the MUX contributors propose to add the remaining 1.38M $ARB airdrop to POL for the following reasons:

- Maintain and increase the share of veMUX holder’s protocol income by raising the foundation of the MUXLP pool.
- Increase POL and help to prepare for the development & marketing budget planning for the coming year. The goal is to continue making MUX competitive in the perps sector with support from the POL.

## Next Steps

- Community discussion surrounding this proposal
- Community members vote to approve/disapprove of this proposal

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### Author: ![mLewisLogic](https://avatars.discourse-cdn.com/v4/letter/m/ad7895/32.png) [@mLewisLogic](https://forum.mux.network/u/mLewisLogic)
#### Post date: [August 15, 2023, 6:13pm UTC](https://forum.mux.network/t/proposal-add-1-38m-airdropped-arb-tokens-to-protocol-owned-liquidity-pol/125/2 "2023-08-15T18:13:59Z")

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I’m definitely in support of this. Let’s put the $ARB to work for holders.
