The MNDE token
Marinade’s MNDE token lets holders participate in the protocol's governance. This includes control of the DAO's fees, treasury and which validators will receive the pool's SOL stake.
Total supply: 1,000,000,000 MNDE
Issuance date: 7 October 2021
Fully issued date: None (distribution based on DAO votes)
Marinade was founded through Solana ecosystem grants at the Solana Hackathon in 2021 and launched its liquid staking protocol and mSOL liquid staking token on mainnet that August. The MNDE governance token was minted on November 7, 2021 as a fair-launch token with no ICO (Initial Coin Offering). Marinade launched on-chain DAO governance in April, 2022. Since then, all decisions related to the treasury have been voted on chain.
In July, 2023, The DAO migrated its governance platform to Realms. This enables direct control of the treasury and protocol decisions by MNDE holders. There is also a Marinade Council that has the power to control liquidity mining and operational multisigs.
The Marinade protocol generates revenue in the following ways:
- Management fees received in mSOL from the liquid staking pool
- Instant unstaking fees generated from its own SOL liquidity pool
- Yield generated from active positions in Solana DeFi
MNDE votes determine 20% of the Marinade Stake Pool (a governable parameter) via Directed Stake. As of August 15, 2023, MNDE directs over 1.3M SOL stake. SOL staked via Marinade’s liquid (mSOL) or Native stake pools are both eligible to be directed via DAO voting.
Stakers who utilize Marinade Native cannot vote for a specific validator, but their stake is factored into the overall amount of SOL delegated to validators.
MNDE Validator Calculator: Solana Validator Cogent Crypto created a MNDE Validator Calculator that lets validators calculate the ROI of MNDE votes based on MNDE and SOL market prices, their commission, server costs, and more.
To participate in DAO governance, holders must lock their MNDE on Marinade’s Realms governance platform. Locked MNDE is subject to a 30-day unlocking period which begins once the unlock is initiated. MNDE holders cannot vote during this period. Anyone with locked MNDE can send proposals on chain and execute them when passed. | View MNDE stats on Realms Governance
Founded as a public good for Solana whose core mission is to contribute to a decentralized and performant Solana blockchain, Marinade’s main goal is to distribute MNDE to similar-minded ecosystem builders and enable them to control the parameters of protocol and treasury through governance.
Today the protocol has the highest TVL of any protocol on the Solana blockchain with over 6.6M SOL staked via Marinade’s liquid and native staking protocol.
While liquidity mining was prevalent in the early days of the token in order to grow distribution and liquidity, the DAO has since transitioned to a model where MNDE is distributed primarily via contributions to the protocol benefitting the TVL growth of the protocol. Projects can receive MNDE via the Open Doors Program, which provides a 4 MNDE per 1 SOL staked over 12 months to grow protocol TVL and decentralization of Solana thru its delegation strategy to 100+ validators.
7.5% of MNDE (75M) is allocated to initial contributors. As of August 2023, only 4.8M MNDE remain to be vested, on an average of 807,000 MNDE per month, completed by January 2024.
The remainder of the MNDE treasury (786M) is under control of the DAO, which can submit proposals and vote to determine how and when to distribute the tokens.
- A 46M milestone budget was distributed to the team and advisors for TVL objectives. When operating expenses are greater than protocol revenue, MNDE is taken out of this budget to support contributor compensation.
MNDE was originally airdropped to mSOL holders and then offered as incentives in liquidity mining to boost token distribution. Now, liquidity mining of MNDE is now under the Marinade Council's control, which can determine the DeFi protocols and pools to support, if any. At this time, there is no liquidity mining available for the MNDE token. Visit the Marinade forum to view proposals for MNDE incentives.