INTRODUCING THE MOUND (MND) VAULT

This post was originally published on Pancakebunny

Hello Bunny Fam! 🐰🐰🐰

Team Bunny would like to thank all of you in the PancakeBunny Community for your positive feedback and encouragement regarding our Recovery Plan and during the ongoing launch of our Polygon launch! (If you are interested in providing liquidity and receiving polyBUNNY on Polygon, please check out our Pre-Launch Liquidity event at polygon.pancakebunny.finance.)

Also, thank you for your patience as we prepare to launch the next component of our Recovery Plan, the Mound Vault and the MND token! Please stay tuned for further details as we approach the launch of the Mound (MND) Vault, which is currently targeted for 02:00 on 28 June 2021 (UTC).

In the meantime, and without further ado, please read below our overview of the purpose and logistics of the Mound (MND) Vault, and join the conversation in our official channels which are listed at linktr.ee/pancakebunny.

Please brace yourselves as you prepare to read this blog post, as the explanation of each of the Mound Vault’s moving parts is necessarily detailed, but we hope that the Community will appreciate that we have done our utmost to make as many of the steps as explicit as possible.

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And remember, as always, Fam, Keep Calm and HOP ON!

1. The Purpose of the Mound (MND) Vault — Driving Ecosystem Recovery

Over the past month, we at Team Bunny have greatly increased our development capacity and carefully monitored the effects of our post-attack stabilization efforts under conditions of considerable market uncertainty and instability. (See Go Forward Plan here.)

Based on our ongoing analysis, we have determined that incremental, micro-tokenomic adjustments are ineffective during the current market downturn, and that PancakeBunny’s recovery requires the injection of significant macro-tokenomic value into the PancakeBunny ecosystem. (See Recovery Plan here.)

With our substantial increase in development capacity, Team Bunny is now well-positioned to deliver all of the components of ecosystem expansion on a significantly accelerated timeline in order to maximize value to the PancakeBunny Community in both the immediate and long term.

The remainder of this article is devoted to further describing the value captured by the Mound Vault, how it operates in conjunction with the MND utility token, and an overview of the logistics of how to receive MND tokens.

2. The Mound Vault Delivers the Value of Ecosystem Expansion

The Mound Vault is a vehicle created to capture and distribute the full value of our ecosystem expansion directly to the PancakeBunny Community. In other words, the Mound Vault is designed as a means for the PancakeBunny Community to share in the full value of all of the innovative DeFi projects/products that Team Bunny has to offer, now and in the future.

In addition to the core value of BUNNY and the PancakeBunny platform today, the Mound Vault captures the value of three new ecosystem drivers for direct distribution to the Community, namely:

  1. Expansion on Polygon and future chains;

2.1. What Goes Into the Mound Vault?

As originally announced in our Recovery Plan, the Mound Vault will consist of the following components:

  1. 1 Million of the Team’s BUNNY (the 1 Million BUNNY minted to the Team by the attack);

2.2. What Is the MND Token?

The MND token is a fixed-volume utility token associated with and backed by the total value of the Mound Vault. It is NOT a protocol token that is minted over time by block or by transaction.

  1. As the PancakeBunny ecosystem recovers — at first, from time-to-time, and later, on an ongoing basis — MND holders will be able to claim their share of the accrued returns and fees generated by all of the assets held in the Mound Vault. (Currently Team Bunny is targeting approximately 4 weeks after launch for first opportunity to claim.)

2.3. Team Bunny Contributions — Setting Up the Mound Vault

Team Bunny will set up the Mound Vault according to the following process. First, Team Bunny will create the Mound Vault and contribute the 1 Million BUNNY that was minted to the Team by the attack. Team Bunny will also begin contributing all of the polyBUNNY that is being minted to the Team by the Polygon fork, up to a total of 1 Million polyBUNNY. Finally, Team Bunny will contribute 100 Million QBT tokens when Qubit is launched, or approximately 10% of the total supply.

2.4. Swap BUNNY Into the Mound Vault to Get MND Tokens — Overview of the MND Launch Event

In parallel with setting up the Mound Vault, Team Bunny will hold a Mound (MND) Vault Launch Event for the PancakeBunny Community. During the Swap Period, the PancakeBunny Community will be able to swap BUNNY into the Mound Vault to receive MND according to the following mechanism.

WEEK 1 — Swap at 1.50x

BUNNY holders will begin to swap BUNNY into the Mound Vault. BUNNY that is committed during WEEK 1 will be assigned 1.50 Allocation Units for a multiple of 1.5x.

WEEK 2 — Swap at 1.25x

BUNNY that is swapped into the Mound Vault in WEEK 2 will be assigned 1.25 Allocation Units for a multiple of 1.25x.

WEEK 3 — Swap at 1.10x

BUNNY that is swapped into the Mound Vault in WEEK 3 will be assigned 1.10 Allocation Units for a multiple of 1.10x.

WEEK 4 — Swap at 1.00x

BUNNY that is swapped into the Mound Vault in WEEK 4 will be assigned 1.00 Allocation Units for a multiple of 1.00x

At the end of the Swap Period, a certain fixed number of MND will be minted. (The current target is 1 Million MND.) Each user will receive a number of MND equal in proportion to the ratio of their Allocation Units versus the total number of Allocation Units assigned to the Community.

Example:

  1. Suppose you swap 200 BUNNY in WEEK 1, 200 BUNNY in WEEK 2, 100 BUNNY in WEEK 3, and 100 BUNNY in WEEK 4, for a total of 600 BUNNY.

Number of MND = 1 Million MND * (760 / 4.85 Million) = 760 / 4.85 = ~156.7 MND

So in the above example, subsequent to the minting and distribution of the 1 Million MND, the user would have ~156.7 MND in their wallet. In other words, the user would have effectively “swapped” their 600 BUNNY for ~156.7 MND. This is around ~40 MND more than if the user had swapped all of their BUNNY in WEEK 4.

2.5. pBUNNY-for-MND Conversion

As many pBUNNY holders have noted with the drop in TVL to current levels, the amount of value accruing to the Compensation Pool has decreased significantly. Team Bunny has been tracking the decrease in compensation rate closely, and has determined that the original mechanism implemented for the Go Forward Plan is no longer effective.

Consequently, in order to ensure the compensation of pBUNNY holders moving forward, pBUNNY will be converted to MND at the end of the Swap Period according to the following mechanism:

  1. The Effective Price of MND will be set as EP = (Total Value of BUNNY swapped into the Mound Vault / Total Number of MND)

Example:

  1. Suppose the total value of BUNNY swapped for MND = $30 Million

2.6. Total MND Calculation

Based on the above examples, it is possible to calculate the Total Number of MND at the end of the Swap Period. Note that, as for all of our projects, the Team will receive an allocation of 15 MND for every 100 MND exchanged for BUNNY and pBUNNY.

Example:

  1. Suppose 1 Million MND is minted to swap for BUNNY and

3. Concluding Remarks

For all of you who have had the fortitude to make it here to the end, congratulations! And thank you, as always, for your steadfast support and encouragement. Please be sure to share your feedback, comments, and questions in all of our official social channels. And please stay tuned for further details on pBUNNY tokenomics and the launch of Qubit, our lending-as-commodity project. And finally please remember, as always — Keep Calm and HOP ON!

Welcome to the Bunny Community. Join us on our Defi journey!

Twitter: https://twitter.com/PancakeBunnyFin

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