Proposal for use of arb allocation


I had an idea about a potential use for a portion of mix’s arb allocation.

I know mux has previously not used incentivized trading, however I think it could be valuable to create greater alignment between mux traders, and mux protocol’s success.

The plan would be to use a portion of miux’s arb allocation as retroactive (and potentially future) rewards for traders on the platform.

However, instead of simply distributing arb to these traders which creates no alignment, mux would trade arb for mcb on secondary market (constructive fur mcb price action) then traders would receive some % of the fees they’ve paid in mcb (even better if this mcb could be vested somehow) in a pro rata fashion.

I believe this create alignment between the people who have previously traded on mux and the mux protocol’s success. If used for concurrent trading also (not just retroactive) could bring in new traders, who, now that they have vested mcb, are more aligned with the success of mux, and are more likely to continue trading on mux since that benefits the protocol.

One of my favorite things about crypto is the opportunities to seek out new forms of incentive alignment between stakeholders in various protocols. I think this proposal honors the spirit of that incentive alignment quite well.