Earning MOG

MOG is the protocol’s token. You earn MOG in three ways:

• Trading: each settled position earns MOG on its trading edge, the value it gives Mog.
• Contributions: you can contribute part of your balance to the treasury for good, for MOG.
• Giving up a payout: you can give up a queued claim for MOG.

Mog also allocates a share of trading revenue to buying and burning MOG.

Your trading edge

Your trading edge is what your position pays beyond a fee-free payout. Mog counts it once, when the position settles:

• Every position: the open fee you paid.
• A winning close: the profit fee, and the part of the price gain that the close curve and the crowded-side charges keep back.
• A liquidation: the liquidation buffer you give up.

A losing close earns MOG only on its open fee. The collateral you lose is not edge, because a fee-free venue would take the same loss. A partial close earns on its own part.

One rate from supply

Every mint uses one rate: 100 MOG per counted dollar at zero supply. The rate falls in proportion to the supply already allocated, and it reaches zero at the 100 billion MOG cap. A burn does not make room, so the rate never rises.

More supply, fewer MOG per dollar

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MOG per counted dollar, before the split below. The trader receives 90% of each mint.

A settlement round fixes the rate when it opens. A contribution and a give-up read the rate when you send them.

Available treasury equity

This is treasury cash after accounting for unpaid payouts and allocated buyback funds. Traders’ cash collateral is held separately. It is zero while any payout waits in the queue.

Trading and contributions share each dollar

The 5 million USDG threshold splits each counted dollar between trading and cash in. While available treasury equity is low, a contribution counts most and a trade’s edge least. At the threshold, only trading edge counts.

Available treasury equity	Up to 1M USDG	2.5M USDG	4M USDG	5M USDG and above
Trading edge counts	20%	50%	80%	100%
Contributions and give-ups count	80%	50%	20%	0%

More equity, more weight on trading

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Launch threshold. Governance can change the threshold after the timelock delay.

At launch, with zero supply and zero equity, each dollar of trading edge earns 18 MOG. At or above the threshold, it earns 90 MOG. A trade reads the equity posted when its round opened.

MOG funding: the skew multiplier

Mog pays more MOG to positions that hold the light side of a crowded market. This is MOG funding. It moves MOG only, never USDG.

Each market tracks its skew: how much the longs lead the shorts, as a share of the side cap. Mog averages that skew over the time you hold the position. At settlement, your mint is multiplied by:

• Up to 2× if you held the light side.
• Down to 0× if you held the crowded side.
• 1× if the market was balanced, or for a position with no hold time.

At launch, a position on the light side of a fully crowded market for its whole hold earns 2×. A position on the fully crowded side earns nothing. A long and a short held over the same time on one market add up to 2× together, so a hedged pair earns no extra MOG.

The app shows an estimate for a new position, if the current skew stays the same. The real multiplier uses the average over your whole hold.

Contributions

You can contribute part of your available balance to the treasury and receive MOG at once. A contribution is one-way. You can never withdraw it. First deposit to your account, then contribute from that balance. Your main wallet signs each contribution, as it signs a withdrawal, and the app pays its gas.

• The contribution first pays any queued payouts, oldest first. The rest goes into the treasury.
• It counts at the contribution share over the equity it moves. A dollar that pays the queue counts at 80%. A contribution made at or above the threshold earns no MOG.
• You set a minimum MOG amount. If the treasury moves before your contribution lands and it would earn less, it does not go through.
• Splitting a contribution into parts does not earn more MOG.
• Contributions are not possible during a venue-wide pause. While Mog is part-way through applying a price update, a contribution waits and the app tries again.
• A contribution raises available treasury equity. It can bring the venue to the threshold, and so start the unlock.

At launch, with zero supply and zero equity, each USDG contributed earns 72 MOG, up to 1 million USDG of equity.

MOG for giving up a claim

You can also give up an unpaid claim for MOG. See how to give up a claim. Giving up a claim reduces what Mog owes traders, so it counts like a dollar contributed to an empty treasury: at 80%.

At zero supply, each USDG you give up earns 72 MOG. The rate reads supply, so it can fall while you wait, as other mints add supply. It never rises.

The team share

The trader always receives 90% of each mint. At or above the threshold, the team receives another 10% beside it. Below the threshold, the team receives nothing from trading. Contributions and give-ups never add a team part. See Team allocation.

View the mint formulas

The rate, with a cap of 100 billion MOG:

$$R=100\cdot\frac{\text{cap}-\text{allocated}}{\text{cap}}$$

The contribution share, with $F$ the available treasury equity and $\Theta$ the threshold:

$$s=\min\left(80\%,\ \max\left(0,\ 1-\frac{F}{\Theta}\right)\right)$$

A settlement mints $R\,(1-s)\,\mu\,e$, with $e$ the trading edge and $\mu$ the skew multiplier. With $\bar s$ the market’s average skew over the hold, positive when longs were crowded, a long takes $\mu=1-k\bar s$ and a short $\mu=1+k\bar s$, each kept between 0 and 2. The skew dial $k$ is 1 at launch.

A contribution of $x$ at equity $V_0$ mints $R\cdot I$, with

$$I=\int_{V_0}^{V_0+x} s(v)\,dv$$

A give-up of $a$ mints $R\cdot 80\%\cdot a$. The trader, contributor or holder receives 90% of each amount, with on-chain rounding.

MOG’s market value depends on demand and liquidity. See Supply and the unlock and Token risks.