MUX is one of the best-performing perpetual protocols by Defillama, consistently surpassing GMX in trading volume.
The projected annual revenue is estimated to be between 40% and 80% of the market cap. With the bull run underway, this figure will multiply.
However, the crypto space often overlooks MUX, with no mention of it on Twitter or Discord.
MUX is currently underperforming in terms of price action, due to a lack of marketing and discouraging tokenomics.
While MUX is dedicated to the long-term growth of the project, in the crypto space, hype plays a crucial role in determining a project’s success. Price is the best marketing tool to attract attention in the crypto community.
Not everyone is willing to lock tokens for four years, even with a 100% APY. The majority of crypto degens prefer to cash out some or most of their holdings at the peak of the crypto market, even if they are bullish on a project in the long term. To attract investors and raise awareness for the project, we should shift at least some focus to short-term price action.
I suggest allocating 20% (adjustable) of the fees generated to buy and burn tokens on the market. Given the current market cap of MUX and the token already locked in the staking pool, this strategy would not only boost the price on its own but also instill confidence in investors and expand MUX to a broader audience.
It’s so frustrating to see that projects with no revenue or utility explode yet projects with real use cases and remarkable yields make no splash whatsoever.
That’s an interesting proposal, but with all due respect I don’t support it.
I understand that price action can be frustrating when we compare it to some other coins but I don’t see how a burning mechanism will improve it on the short term.
Instead of reducing the supply of the token it would first be wiser to increase its demand.
As far as I know this is exactly what the team is working on :
A new referral system for veMUX holders
A liquid wrapper that ll allow veMUX to be liquid
Long term holders are currently rewarded with a high APR this is pretty fair imo.
With the current revenue and marketcap, burning will help establish an upward price moment and attract investors that’s not “4 years infinite lock perma-bull Mux”, which helps to create hype and attention.
I doubt the referral will add a big benefit to VcMUX demand.
The liquid VcMux does help improve investor confidence and increase demand.
With the decrease of token supply, this would further amplify investor appetite and help MUX grow.
MUX is already one of the best protocols in perpetual. But it’s hardly recognized outside of Arbi degens.
Emphasis on long term is fine. But in a bull market, everyone is looking for short term gains. Only degens care about 100% APY. New comers will jump onto projects whose token has 10xed.
If MUX only focuses on long term, it will have a hard time attract momentum in the bull run.
I get your point don’t get me wrong, I’d love to exit my position on a 20x during a bull market.
But this would be a big mistake to design or change the tokenomic for short term holders.
Short term holders are here for a quick profit, they only come and go. They don’t add any value and don’t have a will to make the protocol successful unlike committed holders who lock their tokens over a long period of time.
Again, I think having more utilities would drive the demand for the token in a more sustainable way.
A new referral system for veMUX holders