Concept
In Phase II, holders may stake $MROCK in a staking contract. Each epoch, a portion of the basket acquired by the Index Treasury is distributed to stakers pro-rata to their staked balance. The distribution is made in the constituent tokens themselves, not in $MROCK and not in ETH.
We refer to these as meme dividends. The phrase is accurate: they are periodic distributions to holders, and they are memes.
Illustrative mechanics
| Parameter | Illustrative value | Status |
|---|---|---|
| Staking asset | $MROCK | To be confirmed |
| Distribution asset | MEME500 constituents, at basket weights | To be confirmed |
| Distribution cadence | Each epoch | To be confirmed |
| Distribution share | A published percentage of each epoch’s basket purchase | Published at Phase II launch |
| Unstaking | Cooldown period published at Phase II launch | To be confirmed |
| Voting eligibility | Wallet holds ≥ a minimum $MROCK balance (published at launch) | Phase II |
| Voting weight | Staked $MROCK balance | Phase II |
| Governance rights | Token-gated vote on reconstitutions, factory index compositions and methodology amendments | Phase II |
What staking does to the flywheel
Staked $MROCK is removed from the tradable float, which does nothing for volume, which is what funds the treasury. Distributions in basket tokens give stakers a reason to hold $MROCK that is not purely price speculation. Both effects are considered in the distribution share, which is set to balance accumulation against distribution. The share is a launch parameter and may be adjusted by staker vote.
Governance
Governance is token-gated. Proposals for which tokens enter future indexes, and MEME500 reconstitutions from Phase II, are voted on by the community, but voting is restricted to wallets holding at least a minimum balance of $MROCK. The threshold is published at launch; illustratively, a fixed $MROCK amount rather than a percentage of supply.
- Eligibility. One wallet above the holding threshold is eligible. Below it, the wallet may hold, trade and stake, but not vote.
- Weight. Among eligible wallets, votes are tallied by staked balance, as before. Holding gets you into the room; staking determines how loudly you speak.
- Process. The committee proposes; eligible holders dispose. See the Methodology for quorum and majority rules.
The threshold exists so that governance reflects holders with a position in the outcome, and so that a thousand dust wallets do not constitute a constituency.
Tax and reporting
Receiving a distribution of tokens is likely a taxable event in most jurisdictions. We are not in a position to tell you how, and we are not going to try. Consult a professional who is prepared to read the word “meme dividend” without laughing.