Earning MOG

MOG is the protocol’s token, earned through realized trading losses. Mog allocates a share of trading revenue to buying and burning MOG, permanently removing purchased tokens from supply.

Losses earn MOG because they contribute liquidity or reduce what the protocol owes traders. Rewards are strongest when treasury equity is low.

What determines your reward?

• Your realized loss: the amount that earns rewards.
• Treasury equity: lower equity means a higher reward rate.
• Unpaid claims cleared: qualifying repayments or cancellations earn a boost.
• Paid trading fees: each halving milestone lowers the rate.

Rewards favor early liquidity

The base rate starts at 200 MOG per loss dollar when available treasury equity is zero. It decreases as equity grows, reaching half that rate at 100,000 USDG before halvings.

More treasury equity, fewer MOG per loss dollar

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Before halvings. The upper curve includes the full claim boost. Team issuance is additional.

View the reward curve

$$\mu_F=\frac{1}{1+(F/F_{\mathrm{half}})^2}$$

$F$ is available treasury equity. $\mu_F$ scales the reward rate. The half-reward setting $F_{\mathrm{half}}$ starts at 100,000 USDG and is governable.

Extra rewards for clearing claims

A cash loss can pay a queued trader. A loss on claim collateral cancels that part of the claim. Both reduce what Mog owes and earn a boost on the qualifying amount.

At launch, the boost doubles the base reward on each qualifying dollar. Only the amount actually repaid or cancelled receives it.

View the mint formula

Total trader rewards for a settlement round are:

$$\text{MOG minted}=\varepsilon_0\,\mu_F\,2^{-n}(\ell+bu)$$

The base rate $\varepsilon_0$ is 200. $\ell$ is total realized loss; $u$ is the qualifying claims repaid or cancelled, at most $\ell$. The boost factor $b$ is 1, and $n$ counts completed halvings.

Equity and halving settings are fixed at the round’s start. Individual rewards use each trader’s loss and share of qualifying claim reductions, with on-chain rounding.

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