Mint Rebase System

Understanding minting

Minting is the way in which the protocol issues new DEFI tokens at a discount to market price. Treasury funds from mints are used to pay staking rewards. If the protocol emits too many tokens then there is excessive inflation. To solve this issue we have introduced a mint rebase system, that solves the hyper inflation in the original OHM contract that allows anyone to mint unlimited tokens.
We are also introducing a minting rebase system within our minting contract. This helps D3 Protocol to control the hyper-inflationary nature of the original OHM contract which allows anyone to mint unlimited tokens.
The formula as it currently stands is:
OHMmaxpayout=1%totalsupplyOHM_{max payout} = 1\% * totalsupply
However, since the total supply is not controlled, this current model allows unlimited mints at a maximum payout of 1% per mint.
The problem with this is that an individual can repeat this process ad infinitum, and constantly increase the supply to mint the 1% max payout. The individual constantly adds to his token supply, albeit to an ever increasing diluted one and this causes mass inflation for the protocol.

Minting rebase system (MRS)

We are optimistic that the minting rebase system will change this and help to prevent such actions. There will be a daily rebase that resets the amount of tokens that are allowed to be minted via the mint contract. We will have 4 variables which oversee this minting limit:
  • epochBlock : next mint rebase block
  • epochLength : duration of rebase = 24hrs
  • inStock : available tokens per day
  • Percentage : percentage of tokens on offer per day
These variables are translated into the following formulae to calculate epochBlock, inStock, and maxPayout (the maximum amount available to mint for a single wallet during the epochLength).
epochBlock=24hrs+currentblocknumberepoch_{Block} = 24hrs+current block number
inStock=percentagetotalsupplyin_{Stock} = percentage* total supply
maxPayout=1%inStockmax_{Payout} = 1\% *in_{Stock}
After the rebase, the inStock amount and epochBlock will be reset. This will translate as follows with respect to the inStock equation:
inStock=currenttotalsupplycurrentpercentagein_{Stock} = current total supply * current percentage
The mint rebase system is a totally new innovation that further eases inflationary pressure, and reduces volatility, creating a more stable environment for stakers to stake and earn consistently.