Q: When a GP/LP leaves MCN, why does the returned amount only consist of the USDC in the fund’s treasury and not the tokens obtained through investment and held in the GP multi-sig wallet?
A: As a venture capital organization, MCN makes a promise and commitment to support MCN-invested projects, which may include agreeing to a certain vesting period for tokens obtained, allowable sell prices and times, etc. If the tokens obtained through investment were returned to exiting GPs/LPs, MCN would be unable to uphold their commitments to MCN-invested projects, negatively impacting the fund’s brand and the development of the MCN-invested projects. This would also be unfair to the remaining GPs/LPs.
Q: What is Contribution Mining?
A: Contribution mining is MCN’s original form of mining. This type of mining does not use the amount of staked funds as a measurement standard, but determines the number of tokens obtained based on the size and duration of community members’ non-financial contributions to the community. This prevents big whales from plundering community resources through large amounts of funds and affecting the long-term development of MCN.
Contribution mining is rewarded via airdrops to community members, including GPs/LPs and community builders. GPs, as the key decision makers of the fund, bear the greatest responsibility and need to carefully screen, research, and analyze each of a large number of new projects to ensure the success of long-term success of MCN. LPs are responsible for the various parts of the fund’s operations, including fund DAO setup, MCN token distribution mechanics, post-investment management and support, and other responsibilities. As the actual investors in the fund’s treasury, GPs and LPs will receive any profits from the fund’s investments, as well as 50% of the contribution mining rewards for their contributions to MCN.
Contribution rewards for GPs/LPs will be distributed to GP/LP wallets via airdrops on a regular basis. This means that of the 50,000 MCN tokens that will be distributed to GPs/LPs, GPs will receive 2,500 per month, and LPs will receive 1,666.66 per month. These tokens will be distributed equally among the active GPs/LPs. Any GP/LP that exits MCN will no longer receive MCN tokens.
The rewards for community builders are determined based on their completion of MCN community tasks. A founding GP or other fund coordinator (can be a community builder volunteer) will propose a task list according to the current needs of MCN that community builders can volunteer to complete. When a task is completed, the coordinator proposes the token reward amount and submits it to GPs/LPs to vote for confirmation. Upon confirmation, the GP multi-sig wallet will issue the corresponding token airdrop reward.
Q: Can the USDC tokens in the MCN treasury be used for liquidity mining to increase the fund’s profitability?
A: Of course. We can invest the unused funds temporarily into the best mining projects on vfat.tools to increase the profitability of the fund. The development of an appropriate yield aggregator for MCN’s treasury can be a new MCN community task.
Q: After a GP/LP exits and a new GP/LP enters, how should the new partner’s investment amount be calculated?
A: Before the maximum number of GPs/LPs has been reached, the investment amount at the time of entry is a fixed amount of $200,000/$50,000 USD respectively. When all the GP/LP positions have been filled, the investment amount will correspond to the initial GP/LP fund proportions (10% for GPs, 2.5% for LPs) multiplied by the total valuation of the current fund (the total amount of USDC in the MCN treasury + the total current USD valuation of the investment multi-sig wallet tokens).
Q: What is the relationship between the Shares/Loot owned by GPs/LPs in the DAO and MCN tokens?
A: GPs/LPs will receive Shares (voting power + exit value) and Loot (only exit value) corresponding to their investment amounts after joining the MCN DAO. Shares and Loot jointly ensure that GPs/LPs will receive the appropriate proportion of the DAO treasury when they exit. Shares give GPs/LPs votes for various decision-making aspects of the fund, including GP/LP changes, project investment decisions, etc. Only the GPs/LPs that have supplied the appropriate amount of USDC to the DAO treasury can obtain the corresponding Shares/Loot.
The MCN token is a token used by the MCN Fund to encourage the development of the community and help in the marketing and promotion of MCN-invested projects. MCN tokens will be airdropped to all participants in the MCN community and the promoters/marketers/community members of MCN-invested projects, including but not limited to GPs/LPs. That is, anyone can receive an MCN token airdrop.
GPs/LPs decide the airdrop rules of MCN tokens through DAO voting, and can also vote to decide how and when to airdrop USDC from the fund’s profits to MCN token holders.