MIP-1: MIST Tokenomics, A Proposed Catalyst for Growth


The Alchemist Council is proposing to change MIST tokenomics through the implementation of the following measures:

  1. A new rewards program for single-sided MIST stakers called “Community Harvest Alchemist Distribution (CHAD)” aka “CHAD Stakers Rewards”.

  2. Rename the current “Aludel Rewards Program for MIST-WETH LPs” to “CHAD LPs Rewards”.

  3. Configure the CHAD Rewards for Stakers and LPs to be driven solely by product revenues in the native tokens those revenues were earned. Historically that would include USDC, ETH, WETH.

  4. A new opt-in long-term ALCHECHAD rewards program that achieves the goals of vesting MIST, where LPs and MIST stakers can commit to staking their LP or MIST for 12 months in exchange for each program individually receiving 2.5% of the MIST inflation.

  5. Redirecting the 50% of MIST inflation currently received by MIST-WETH LPs to instead go towards funding the Alchemist incubator and new products.

We believe these are important tokenomics changes necessary for reinvigorating the Alchemist ecosystem and look forward to hearing the community’s feedback on them.

Read on to take a deep dive into why we believe these changes to the current tokenomics of MIST could be the catalyst Alchemist needs to continue growing and what our future could look like.

The Alchemist Growth Machine (GM :alembic::sunny:)

Alchemist is a cycle, in which MIST inflation is used to create new products, those products contribute value back to MIST, then based on that value future MIST inflation gains the strength to fund even more products, and the cycle repeats again. This cycle has the potential to facilitate perpetual growth if utilised effectively by the Alchemist community. Therefore, our duty as a community is to continuously fine tune and iterate on our processes to operate this growth machine to ensure that it operates smoothly.

Inflation ➝ MIST + Community Coordination ➝ Products ➝ Airdrops ➝ MIST Demand ➝ Stronger Inflation

MIST’s initial value was bootstrapped by four innovative products: MIST token inflation (the fuel for a self-perpetuating growth machine), the Crucible and the MIST-WETH LP rewards program (the first product delivered by Alchemist builders which also served as the foundation for our tokenomics), “the only plan is there is no plan” (the narrative of having no narrative), and a fair launch of MIST conducted through an LBP (the origins that incentivized a new community to become active contributors and builders within Alchemist). These initial products resulted in significant value accrual to MIST that then ensured that future MIST inflation cycles had the power to fund the development of new products. The Alchemist Growth Machine was set in motion.

A product is typically described as an article or substance that is manufactured or refined for sale. In the context of Alchemist, everything that has the potential to accrue value to MIST is a product. Tokenomics, builders, narrative, and community – these are all product areas with huge potential to impact the value of MIST.

Since inception, the largest innovations at Alchemist have occured at the builder and community levels – a test of nature’s rules, from chaos emerged order. Groups of strangers formed teams to build and experiment with multiple innovative products: the Crucible, the Alchemist Seniors, mistX, Copper, sandwiched.wtf, Alchemist Radio, Chaos Lab, the Alchemist Council, the Alchemist Incubator, to name a few. Some of these products were more successful than others, but lessons about product design, team building, community, business, and governance were learned from all. Specifically, how to create value from nothingness and uncertainty. The knowledge gained during this time will continue to live within Alchemist and benefit all of our products moving forward. The Growth Machine continues.

Over the course of the last year, the product within Alchemist that has suffered the most from a lack of innovation has been MIST tokenomics. At the heart of MIST tokenomics we have an incredibly powerful tool: inflation. However, beyond that our tokenomics has grown stagnant and poses a very real threat of “Death by ossification”, to quote the Alchemist alien. With MIST at all time lows the potential of the Alchemist Incubator as a builder’s Growth Machine and the corresponding narrative is severely limited.

Through this proposal to our community, we hope to evolve our tokenomics by restructuring our rewards program to drive value back to MIST.

Tokenomics Strategic Challenges

Below is a diagram illustrating our current tokenomics.

There are numerous problems with our existing tokenomics setup:

  • The only group of stakeholders that the current Aludel Rewards Program favours are MIST-WETH LPs, and it does not represent the free-floating MIST in circulation. Free-floating MIST (defined as MIST not locked up in LP, the Crucible rewards pool, the treasury, the multisig, or vesting contracts) makes up about ~50% of all MIST and is composed of 11K token holders.

  • For LPs, the rewards program weighs heavily towards early LPs and somewhat discourages new LPs from entering the rewards program.

  • The 25% of MIST inflation currently received by the Alchemist Incubator funds core community operations as well as newly incubated projects. The current price of MIST is too low to result in a significant wave of new incubations.

  • Alchemist community engagement is at an all time low and governance tends to favour LP providers.

  • Directing MIST inflation to the Aludel Rewards Program is zero sum for the Alchemist community because it attempts to consume MIST without first running it through the Growth Machine and creating new product value using that MIST. The Alchemist Growth Machine isn’t functioning effectively because its fuel, inflation, is leaking rather than going straight to the engine that drives everything.

Alchemist is a Growth Machine fueled by inflation and supported by the MIST community. To reinforce and strengthen this narrative, MIST inflation should be used to solely fuel the incubator, while reward pools should benefit from value accrued to MIST as a result of the incubator increasing the value of the whole Alchemist ecosystem.

Desired Outcomes of Tokenomics Changes

Alchemist tokenomics need to be consistent with our core mission of driving value back to MIST through the Growth Machine. Reinforcing this cycle will reignite and solidify our mission. The new tokenomics system must:

  • Engage our whole community of token holders and not just liquidity providers; foster tighter bonds and cooperation within the community.

  • Give the Alchemist incubator the proper resources to incubate more teams.

  • Strengthen the reflexive relationship between token holders and Alchemist products.

  • Focus on the core Alchemist principle of creating products via inflation, with the goal of increasing the overall value of the Alchemist ecosystem by ensuring that newly created products add enough value to outpace inflation.

Next Generation Tokenomics Details

The details of the new tokenomics proposal are as follows:

  1. Redirect the MIST inflation currently sent to existing MIST-WETH LP stakers to instead go to the Alchemist Multisig for the sole purpose of funding and incubating new products.

  2. Redirect up to a maximum of half of the revenue airdrop going to MIST-WETH LPs Rewards to go to single-sided MIST stakers in a new rewards program called “Community Harvest Alchemist Distribution (CHAD)” aka “CHAD Stakers Rewards”. The proportion of revenue redirected is variable and will be determined by the proportion of single-sided MIST being staked relative to current free-floating MIST supply. Rename the Aludel Rewards for MIST-WETH LPs as “CHAD LPs Rewards”.

  3. Revenue airdrops for both CHAD rewards programs would be airdropped in the currencies that they are earned in, rather than MIST, in order to avoid adding unnecessary selling pressure to MIST. Historically these native tokens would include USDC, ETH, WETH.

  4. To be eligible for CHAD Stakers Rewards, one’s tokens need to be locked in the CHAD program for a minimum period of 90 days. Withdrawing a stake prematurely will result in the forfeiture of any rewards earned.

  5. Before revenue airdrops are distributed, analysis of the free-floating MIST supply will be undertaken and distributed according to the threshold levels laid out in the table below. Establishing which threshold has been reached will be performed on a monthly basis. The Alchemist Council will monitor participation in the rewards programs and reserves the right to make adjustments to the thresholds and splits within it in order to promote a healthy balance between MIST-WETH LPs and single-sided MIST stakers.

  6. Participants in the CHAD Rewards for LPs and MIST stakers will be able to partake in governance proportionally based on the share of revenue airdrops they are earning under the most recently achieved thresholds.

The following are the proposed single-sided staking levels to unlock the revenue redirection from CHAD Rewards for LPs to CHAD Stakers Rewards. This can be thought of as a coordination game between single-side MIST stakers. The Based Alchemist Games (BAGs) have four levels that lead up to the climax of the game (ie. max rewards per % of free-floating MIST staked).

BAG Levels % of free-floating MIST staked in Crucibles % of revenue airdropped to CHAD LPs % of revenue airdropped to CHAD Stakers
Default 0 - 29.99 47.5 2.5
1st Base 30 - 44.99 45 5
2nd Base 45 - 59.99 42.5 7.5
3rd Base 60 - 69.419 35 15
4th Base > 69.420 25 25

The breakdown above outlines the proposed allocation of the 50% revenue airdrops and is dependent on the amount of free floating MIST. Free floating MIST excludes MIST locked up in LP, Crucible rewards pool, the treasury, the multisig, and vesting contracts.

Next Gen Tokenomics Benefits

The proposed tokenomics changes will:

  • Greatly diversify the group of stakeholders benefiting from revenue airdrops.

  • Incentivise the locking of MIST, reduce the free-floating supply of MIST, decrease MIST sell pressure, and increase MIST accumulation further applifying the value accrued to MIST.

  • Foster collaboration within the community as it tries to hit each of the staked MIST levels, unlocking more value for the MIST stakers.

  • Encourage LP providers to periodically unwind staked positions in order to participate in the Based Alchemist Games (BAGs), providing better opportunities for new entrants into LP and rewards program positions.

Alchechad Rewards Program

We believe vested MIST has the potential to strongly align Alchemist contributors with our community’s long term success. As a way to further encourage community members to become active Alchemist contributors we’re proposing two additional Crucible rewards programs, Alchechad Rewards for LPs and Alchechad Rewards for MIST stakers, which would distribute 5% of inflation to all LP providers and single-sided stakers that lock their MIST for 12 months (2.5% to LPs and 2.5% to single-sided stakers). An early exit would result in forfeiture of any accrued MIST token rewards. The full details and timing of these rewards programs are still to be determined, but we plan on pushing them through after the new tokenomics initiatives outlined above go live.


MIST - The ERC-20 token used to align the participants of the Alchemist ecosystem.

Inflation - A property of the MIST token where its supply increases by 1% every 14 days.

Circulating supply - The amount of a token’s supply that is available for trading. Currently for the MIST token the total supply is the same as the circulating supply and the token is inflated by 1% of its total supply every 14 days.

MIST-WETH LP - The MIST-WETH liquidity pool enables the decentralised exchange between WETH and MIST pair. A large liquidity pool is critical for a healthy ecosystem as it enables participants to easily exchange ETH for MIST or vice versa. Currently about 30% of the MIST supply is locked up within the MIST-WETH LP and the LP is contributed to by around ~7K wallets.

Free-floating MIST - MIST not locked up in LP, the Crucible rewards pool, the treasury, the multisig, or vesting contracts. Currently that’s about 50% of MIST and it is held across ~11K wallets.

Crucible - A smart contract wallet built within Alchemist. One of its features is to enable its owner to prove they hold (stake) a particular ERC-20 asset in Crucible and subscribe to be rewarded by a third party for holding that asset. Reward subscriptions are non-custodial, so the assets never need to leave the user’s wallet when subscribing to new rewards programs.

Product revenues - Revenues resulting from products within the Alchemist ecosystem. A community vote was passed to direct 50% of core product revenues (the first 3 fully incubated products: Crucible, mistX, Copper) while they’re incubated to be airdropped within the Aludel rewards program.

Aludel rewards program (soon to be renamed to CHAD LPs Rewards) - The current Aludel rewards program incentivizes Uniswap V2 MIST-WETH liquidity providers to stake their LP tokens in Crucible with 50% of MIST inflation and 50% of all Alchemist product revenues in form of a MIST buyback. The program has a maximum multiplier of 10x that can be achieved from remaining subscribed in the program more than 60 days.

Community Harvest Alchemist Distribution (CHAD) for MIST Stakers - aka CHAD Stakers Rewards. The Alchemist rewards program introduced to incentivize single-sided MIST stakers and reflect the proposed changes to Alchemist tokenomics.

MIST-WETH LP staking - Holding the MIST-WETH LP ERC-20 token in Crucible that represents the fact that one deposited liquidity into the Uniswap V2 MIST-WETH liquidity pool. Such tokens are automatically issued by uniswap into one’s wallet upon providing liquidity to the MIST-WETH pool.

Single-side MIST staking - Subscribing to CHAD Stakers Rewards via Crucible.

Product - An article or substance that is manufactured or refined with the goal in mind to accrue value to the MIST token.

Alchemist Council - Community elected governing body tasked with managing the effective distribution of MIST inflation.

Alchemist Seniors - Builders and community members that took on a more active role in helping manage the day to day activities within Alchemist.

Polling Period

The informal forum poll begins now and will end on July 13th at midnight. Assuming in favor, this vote will go to Snapshot.

  • For: Create CHAD rewards programs for LPs and single-sided MIST stakers to be funded by product revenue airdrops in native tokens; redirect MIST Inflation from rewards programs towards the Alchemist Incubator
  • Against: Keep the current Aludel rewards program and MIST inflation distribution as it is
  • Abstain

0 voters


Looks good. Main things I would change are rewards to LP. Would consider giving more to single sided staking over LP. Would also consider removing BAG as I think its too complex for newbies to understand.

Awesome work, I’m in full support for this.

If this gets passed for vote, I think it would be nice to maybe consider a periodic review schedule where the results can be analysed, potential strategy changes presented or extension at the current terms, then passing this to the community for vote.


Allow me to begin by expressing my utmost appreciation for @ri_ri and all the individuals involved in getting this proposal to the community. The fact that Alchemist is publishing this proposal is a great sign and I look forward to seeing the final result.

I believe this proposal does a great job at addressing many of the problems our current tokenomics has faced since our inception. However, I believe that there are some problems that are still left unaddressed with this proposal. The largest problem left unaddressed is the liquidity pairing of MIST with WETH. I would argue most, if not all, of our price action is so determined by two factors: MIST liquidity being tied to WETH and LPs being rewarded in MIST. This proposal changes the rewards for LPs to other coins and addresses that issue. However, if we continue to use WETH as the liquidity backing of MIST we will continue allow our coin to be susceptible to the extreme volatility associated with ETH. A rising tide lifts all boats and falling tide lowers them as well. This volatility is unnecessary for us to be exposed to at this point in the evolution of crypto, as there are a variety of stable asset solutions that MIST could be paired with to mitigate our exposure to the volatility of ETH. That is why I would like to amend this proposal with the following changes:

1. MIST liquidity be paired with the stable asset RAI.
2. MIST liquidity be provisioned via a Balancer 80/20 pool.
3. Increase MIST inflation rewards for Alchechad LPs to 22.5%
4. Increase MIST inflation rewards for Alchechad stakers to 7.5%

These proposed amendments share the same goal: increasing the stability and resiliency of the Alchemist Ecosystem by significantly reducing the volatility of MIST.

RAI is an un-pegged overcollateralized stable coin that is only backed by ETH. Over the course of the last year the difference between the highest and lowest price of RAI was roughly 5 percent. The difference between the highest and lowest price of ETH during the same period was roughly 80 percent. Obviously, that is a significant difference in price action over the last year. Stables assets all have their own risks, however of all the stable assets available on Ethereum, RAI is arguably the least risky. RAI is a fork of SAI (MakerDAO’s precursor to DAI) and only has a couple of changes to the code-base. RAI was made to forever be backed solely by ETH and is overcollateralized. RAI shares a similar ethos as Alchemist, and I believe that there could be a strategic partnership between RAI and Alchemist. I will elaborate on that possibility later, but for now here is a good article if you wish to learn more about RAI: A Money God RAIses — RAI is live on Ethereum Mainnet! | by Ameen Soleimani | Medium

A Balancer 80/20 pool reduces impermanent loss and more closely tracks the price of the 80% weighted asset when compared to a Uniswap 50/50 pool. However, these benefits come at the cost of increased slippage compared to a 50/50 pool. Despite increased slippage, I believe an 80/20 pool be more beneficial to the Alchemist ecosystem over the long run than a 50/50 pool. This is because I believe we should prioritize the stability of MIST and the organic price action of the coin rather than the efficiency of trades. Since Alchemist’s incubation efforts hinge on the ability to use MIST to fund those being incubated, it is critical that MIST prioritizes stability and liquidity over anything else. If you would like to learn more about Balancer’s 80/20 pool check out this article: 80/20 Balancer Pools. One of the main motivations behind… | by Fernando Martinelli | Balancer Protocol | Medium

Liquidity is what allows for the Alchemist experiment to preserver during times of low revenue generation. The MIST-WETH pool has been a backbone of the Alchemist ecosystem since our experiment’s beginning. That is why I believe that Alchechad LPs should receive 22.5% of MIST inflation. Alchechad LPs will be locking up their LP for a full year to help provide a stable source of liquidity for the Alchemist Ecosystem to draw upon. As such, I believe that these individuals deserve to have a significant increase in the rewards they earn over that period when compared to Alchechad stakers and the normal Chad LPs/stakers.

Currently, LPs receive 50% of inflation and 50% of ecosystem revenue. This proposal would drastically reduce the amount of inflation loyal MIST LPs have been receiving from 50% to 2.5%, and it may also reduce the ecosystem revenue received from 50% to 25% if over 69.420% of the free-floating MIST supply is successfully staked. I understand that if this proposal were to be implemented in its current form that it would likely drastically reduce the sell pressure of the MIST token which would benefit everyone. Nevertheless, this proposal would drastically hurt the loyal LPs who have never withdrawn their LP or sold their MIST tokens. These are precisely the type of ecosystem participants that Alchemist desperately needs more of. These individuals would likely participate in the Alchechad rewards programs. That is why I believe increasing the inflation received for Alchechad LPs and Alchechad stakers from 2.5% to 22.5% and 2.5% to 7.5%, respectively would work to further increase the stability of MIST and reward our most loyal participants.

The largest risk associated with what I have proposed revolves around the changes I have suggested around LPs. They would have to break up their 50/50 LP, buy or mint RAI, and provide liquidity in the Balancer 80/20 pool. During this process some LP may decide that they wish to stop providing LP and/or sell their MIST. We could end up with a lower MIST price and a smaller liquidity pool. However, these same individuals may decide to do this because they will not be receiving MIST any longer and may end up getting a smaller cut to Alchemist’s revenue sharing. I think that if there is a time to make these huge changes to our LP program it is now. If LPs have lost faith in Alchemist or no longer wish to hold MIST or provide liquidity it is better to have them exit now. They should recognize that they are exiting at all-time lows and that it would be better to go through with the proposal to stabilize MIST. The moment our liquidity is no longer tied to the price action of ETH we will be in a better place even if we have less liquidity. At the end of the day, most of the previous price action of MIST has been because of the volatility of ETH. We need to get off the ETH liquidity train so that we can start stop worrying about MIST price action.

If we enact my proposed amendments, we will shift the price action of MIST from being a derivative of the ETH price action to purely MIST entrants and exits. We may have some exits and a lower liquidity pool size but in the longer run I believe it will benefit the health of the Alchemist dramatically.

Partnership Possibilities

There are a fair amount of 80/20 pools that are earning BAL rewards from Balancer. Considering Copper is one of, if not the, most successfully application built on Balancer technology, I would imagine it may be possible to get some BAL rewards from Balancer for transitioning our liquidity to an 80/20 pool.

I believe there could be a possibility to form a strategic long-term partnership with the Reflexer DAO, Reflexer Labs, and the overarching RAI community. Here are the steps Alchemist could incrementally take in a partnership with RAI:

  1. Transition our liquidity pool to being paired with RAI
  • Napkin math:
  • Apx. 1100 WETH in current 50/50 MIST liquidity pool
  • 1 WETH = apx. 380 RAI
  • 1100 * 380 = 418,000 RAI
  • 418,000 RAI makes Alchemist LP the 3rd largest holder of RAI
  1. We take our revenue coins and convert them to RAI and then distribute them to our CHADs.
  • Our revenue coins have been historically WETH, ETH, and USDC.
  • All of which, would run through RAI pools which they incentivize community participants to provide liquidity for.
  • We are essentially giving these pools, which are mostly owned by RAI community members, a small cut of our revenue.
  • If CHADs sell RAI they likely will once again be giving a small fee to the RAI LP community.
  1. We hold RAI as a portion of the stable asset reserves in the Alchemist Treasury and/or Mulitsig.

  2. We allow for Copper LBPs to use RAI as a base asset.

  3. We perform a token swap between the Reflexer DAO and Alchemist. Swap MIST and FLX.

  4. We reward FLX/ETH LPs with some MIST

What would be the benefits of Alchemist partnering with RAI?

  1. Reflexer DAO could reward the MIST-RAI pool with FLX via a Crucible rewards program.

  2. RAI could transition their custodial staking rewards program to Crucible’s non-custodial rewards program.

  3. The Alchemist community could expand and benefit from becoming strategically intertwined with the RAI community.

  4. Perform a token swap of FLX for MIST between entities.

Alchemist would simply want to partner with RAI to accumulate their ungovernance token FLX in a passive manner. RAI charges around a 2% annual fee to mint RAI which is then auctioned off and can only be purchased using FLX. The FLX is then burned. The longer that RAI can remain reasonably stable and become less and less influenced by outside forces the great its legitimacy of being the one and only truly decentralized stable coin will become. As this narrative grows stronger, more RAI will be minted which leads to more revenue and an increased demand for FLX while also decreasing the supply via the burn mechanism.

I am keen to hear everyone’s feedback on my proposed changes to the tokenomics proposal put forth by the Council. Once again, thank you to @ri_ri and everyone who contributed to this proposal as I believe it is a step in the right direction.

<3 Santa :alembic::sunny:

Thanks for the great post Santa.
I have to admit I am not overly familiar with Rai. I’ll have to do some reading up on this. I’m not sure I get the reward structures that would exist under your proposal, could you dumb it down for me?
If I remember correctly the Council did discuss the balancer 80/20 at some point. I cannot remember what the outcome was, maybe it was just to get this initial proposal out here for discussion and see what feedback we get :man_shrugging:
Either way, great post and I look forward to seeing what others think.

1 Like

Thank you @Stew! My apologies for not being clear enough. Here are my proposed changes to the rewards programs.

Proposal CHAD Stakers Inflation Rewards CHAD LP Inflation Rewards Alchechad Stakers Inflation Rewards Alchechad LP Inflation Rewards
The Council 0% 0% 2.5% 2.5%
Santa 0% 0% 7.5% 22.5%

I support the proposal in general but I wonder if there are room to increase the 50% revenue share with the two reward program ?

If yes, I would suggest to increase it to incentivise current reward program participants to vote in favour, because @ the first glance they will no longer be able to receive reward from inflation, but the revenue share stays @ 50%

Re:Santa’s idea, I support the idea of exploring possibility to pair with a stable instead

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1. MIST liquidity be paired with the stable asset RAI.

A lot of interesting ideas to explore here Santa. I think certainly worth exploring a RAI pair in the future. Right now I feel like there’s a big tradeoff vs WETH because if the LP community is longterm bullish on WETH a WETH-MIST pairing would help offset the impermanent loss effect of MIST appreciating in price.

For example using this calculator Impermanent Loss Calculator, MIST going to $30 relative to present levels while RAI retaining same value would result in about a 40% impermanent loss percentage. Whereas is in a pairing with WETH if WETH goes to $3000 during the same time frame impermanent loss would be around $20.

The other thing is RAI’s market cap is currently $15 million and it’s still relative new. Going all out RAI could be quite risky for our whole liquidity pool, but I would be in favor of exploring new pools pairing MIST with RAI in the future.


2. MIST liquidity be provisioned via a Balancer 80/20 pool.

Big fan of 80/20 pool architecture. Something I think we should definitely look at. Maybe Alchemist could continue building out a protocol owned liquidity pool on Balancer while giving LPs the option to use it as well as part of the reward program. Maybe it could even be a RAI pair :eyes:. Personally I think we shouldn’t risk massive change like this that could destabilize LP in an all or nothing way and we should experiment with them gradually instead.


If the goal is to transfer MIST funding towards the incubator growing the above rates too high defeats that purpose as it’s not a “productive” use of inflation. In the direct sense that it’s not funding new products. Alchemist’s mission is hypergrowth through incubation. Incubation revenues should be what incentivizes LP and single sided staking.


Thank you for a very detailed write up of your thoughts and the research behind them. Hope more community members engage this way and maybe going forward we could create some sort of working group to analyze and map out these type of ideas collectively. I think a bunch of the things you list we should experiment with, but without the disruption and unpredictability of completely scrapping our current set up.

Curious what others think. I like the idea of the The Based Alchemist Games. would be a lot of fun and could be a great way to onboard new community members while also keeping the community engaged throughout the experience. The actual act of staking would still be quite simple, but I think the BAGs adds an exciting ongoing component rather than staking and forgetting and not feeling a need to stay engaged with the community.

The thinking behind the gradual ramp up is also because if we go with instant high reward rates LPing loses its appeal. a large chunk of MIST is locked up in LP and the LP rewards pool. want to avoid causing harm through that. single side staking gets as a baseline a reward, but beyond that it requires reaching further thresholds. otherwise there’s no incentive for someone that’s already staking to convince others to stake because it dilutes them. with the way we’ve designed the thresholds everyone stands to win by getting more people to stake.

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I think going beyond that would make retaining founder level talent and great builders within the community quite difficult. Agree with you on exploring additional LP pairs in order to satisfy varying risk appetites for LPs.

I think introducing some sort of burn mechanism would be wise in the long-term since inflation is compounding and could get out of hand in long-term.
My starting idea for this :point_down:

Phase 1:
Burning unused tokens in Alchemist incubator leaving just necessary amount for a new incubation project and for sustaining existing project.

Phase 2:
Decreasing or turning off inflation when current Alchemist ecosystem projects are generating enough Revenue to sustain Alchemist incubator without a help of inflation.


  • making mist more stable
  • decreasing inflation/ making mist deflationary asset. ( if burn continues after inflation is stopped)
  • overall more desirable look for mist token​:muscle::rocket::fire:.

also makes sense for investors to HOLD mist if they know mist eventually will be deflationary.

I agree. After having a look at Rai I think you summarize the risks well. This could be something to look into in the future.

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How would you know what is the “necessary amount for a new incubation project”?
Different project will require different funding amounts at different times of the market cycle. and we may have more than one project to incubate.
Any unused inflation would reside within the multisig wallet and be used only for incubation, it would not enter circulation otherwise.

Maybe instead of giving a limit to the fund that is allocated to the project individually, we could give a limit to the total incubator teacup, if the savings balance is too high, the funds spill out and burn🔥.

Of course, the question remains, how high is this theoretical limit?
500k, 20kk…? I feel that we can find a golden middle if we put our heads together. :man_mage:

As I’ve stated in Telegram, I appreciate the council’s efforts to improve current tokenomics. I don’t however agree with the proposal to eliminate all of the MIST that lp’s receive from the inflation. I believe that receiving a portion of the MIST is an important incentive that helps to offset some of the dilution that continually occurs every 14 days as well as potential impermanent loss.

I do like the suggestions for single sided staking, reduced inflation and possible burning of MIST as revenue increases, and perhaps protocol owned liquidity. I’m not as sure about the risk of a RAI pair as I would need to research the risk reward more to have a strong opinion.

I’m disappointed to see the lack of community participation in this important initiative. With only 21 total votes at this time, the team/council can pretty much push through any agenda they choose.

I’m not saying that as an attack on the team or counsel in anyway. I have a lot of respect for both. I would have just liked to have seen what more of the community thinks. I hope the council is open to changing their proposal based on the feedback they did receive. I’m also hoping the MIST team has something up their sleeves that will reignite the community in this down market.