Marinade Stirs the Pot: Unlocks the Door to a New DeFi Terrain

SOL world is no stranger to innovation, and Marinade is stirring the pot again, in more ways than one. With its new 12-month initiative, aptly named “Open Doors,” Marinade is offering a whopping 160 million MNDE tokens to spur mSOL adoption across various platforms, aiming for a 40 million mSOL adoption rate. What sets Open Doors apart from Marinade’s earlier strategies is its focus on ecosystem builders rather than just liquidity mining, highlighting a paradigm shift in how MNDE tokens are distributed.

A generous reward scheme accompanies this initiative: for each mSOL contributing to the growth of Marinade’s Total Value Locked (TVL) between February 1, 2023, and January 31, 2024, four MNDE tokens will be distributed. Marinade’s intentions go beyond just incentivizing growth; the program aims to build upon the robustness of the Solana network by enhancing its resistance to censorship and increasing its overall DeFi liquidity.

For Solana Validators who prefer to be on the cutting edge, Marinade offers its Liquid Self-Stake product to amp up DeFi liquidity, slotting perfectly with the program’s broader ambitions. Marinade has always touted itself as a public good, aimed to serve the Solana ecosystem, but its ultimate goal is even grander: governance by a DAO that brings together the crème de la crème of Solana’s ecosystem players.

The “Open Doors” initiative also promises diversity. The program isn’t a one-size-fits-all; it’s fragmented into multiple use cases. Marinade’s team has a three-month timeline to announce additional scenarios that can participate. Notably, protocols can elect to distribute their MNDE incentives either through liquidity mining or by locking their tokens into a unique Chef NFT to participate in Marinade DAO governance.

Let’s talk about the shifts Marinade is making: a move from time-based MNDE token distribution to a system centered around TVL milestones, a redefinition of the core team’s MNDE vesting schedule based on these milestones, and a re-evaluation of the whole incentive design system. The changes are comprehensive and come on the heels of some stagnation. Despite rocketing from zero to 7 million SOL in TVL within a matter of months in 2021, Marinade hit a plateau in 2022.

Roughly 20% of MNDE tokens have already been distributed since Marinade’s inception last year. To say that it’s a transitional period would be an understatement. Governance is undergoing a significant overhaul, with a new set of seven multisig signers elected in December 2022, and while some parts of the business, like the MNDE treasury, are still team-governed, the control is gradually transferring to MNDE token-holders. Initial successes in liquidity mining showed promise but ultimately plateaued, forcing a change in strategy. It resulted in a DAO vote to drastically cut back on MNDE distribution through that channel.

So, what’s the new song and dance? Open Doors. And it’s not just another token gimmick. Open Doors represents a holistic approach to solving multiple issues: from MNDE multisig control and MNDE liquidity mining to the MNDE unlock and distribution system. It’s about aligning incentives better, with Marinade awarding MNDE tokens to builders contributing to its growth, not just to liquidity miners. In essence, MNDE tokens are now easier to come by for builders and those driving liquid staking through mSOL. It’s a nod to the future, a future where Marinade doesn’t just exist but thrives and serves as a benchmark for others to follow.

Marinade’s Open Doors initiative stands as an emblem of what informed shifts in strategy can accomplish. It’s not just about tokens or liquidity; it’s about building a resilient, decentralized ecosystem that can stand the test of time.

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Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

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