The native Mute token, MUTE, functions as a utility towards unlocking accessibility into the Mute DAO, which is a locked based vote system based on a soul-bound token, dMUTE (DAO Mute.io Token). A soul-bound token is a token that cannot be transferred and is locked to the address that receives it. This lock based system requires MUTE holders to lock their MUTE for a period of time (7-364 days), and in return receive a new soul-bound token, dMUTE. After the lock period is expired, you are able to redeem and burn your dMUTE back to your original MUTE balance, continue to hold dMUTE, or redeem & re-up a different time lock. Specifications Minimum lock time: 7 days Maximum lock time: 364 days Increment of lock period: 7 days The exchange rate of MUTE to dMUTE would be a linear function of the time lock and amount of MUTE being locked:
An example: Locking 12500 MUTE for 54 days would result in (12500 * (56/364)) ~= 1923 dMUTE.
Remember, owning dMute grants you the ability to delegate your dMute voteshare to other addresses. By default, it is delegated to you - but in the chance you delegate it to another address, you are giving up all utility that the DAO offers.
dMute vote utility:
- Dictates a users Amplifier Boost of a Amplifier Pool
- Modifications to the AMM protocol fee (0.1% currently, can be fixed or dynamic depending on pair)
- All Mute DAO utility