Min Hodler Reward Program

We have a little under 70% of the Min tokens still locked up and being released in the form of farming incentives. As the supply continues to increase, this will dilute the price of the token for existing Min holders overtime and give them less incentive to hold their Min tokens.

Providing liquidity causes the holders to have to split up their Min holdings 50% to the other token of the pair they are providing liquidity for. They are also subject to impermanent loss and during periods of heavy divergence (even if it is a bullish case) this can be fatal. For example look at this individuals case, if they had just held their AGIX, they would have been way better off showing their support in that way rather than by providing liquidity to the protocol.

Case: Need Help - permanent loss or impermanent?

So what about people who just want to buy and hold only Min?
I propose that we increase the utility of the Min token a little more by imposing a slightly higher fee (taken in the form of Min) ONLY WHEN SELLING the Min token for any other token.

These fees would then be sent to a smart contract that stores them until the end of the epoch or until a limit is reached and distributes it (in the form of an airdrop) to all existing holders of Min (as well as LPs) to reward them for showing their support to the Minswap dex. This reward is only distributed to min tokens that were held (or provided for liquidity) for at least 1 epoch and the rewards would be distributed the following epoch.

For example, if we charge a 0.01% (we can vote on how much) fee on transactions where Min is sold. On a theoretical Min sell volume of 10,000,000 Min in an epoch this would allow 1000 Min to be allocated to the Hodler Reward Wallet. And airdropped (every epoch or if a threshold is met) to all current holders of the token with respect to their % ownership in the following epoch.

This fee can also be dynamically allocated between a range of 0.01% - 0.05% (we can vote on range) respectively to address times of low sell pressure vs high sell pressure to strongly incentivize people to keep hodling the Min token.

This will greatly benefit Minswap because:

  • It will encourage people to buy and hold Min token despite selling pressure and daily market volatility.
  • It will be a safer alternative for those scared to lose out on impermanent loss.
  • It will cut back slightly on the current inflationary tokenomics of the Min token and help it hold some of its value (in addition to the fee switch).
  • It will not force people who just want to hold min to have to provide liquidity to another token as well and risk impermanent loss.
  • It will allow users to gain some utility out of the token as they wait for further developments that will provide even more utility.
  • It will rewards buyers and holders at a slight cost to the sellers.
  • It will allow existing holders to benefit during times of high selling volume.
  • Once all tokens are in circulation, it will still rewards hodlers without subjecting them to any impermanent loss via LPs.
  • During weeks of expected heavy sell pressure due to news or big events, it will encourage more people to hold for the epoch rather than sell in order to accrue rewards from heavy sell pressure. Even if selling happens after the epoch is over, that will still benefit hodlers.

Combined with the fee switch and any future utility improvements of the Min token, this will greatly increase the utility of the Min token, have a positive impact on the price, and work towards making the Min tokenomics more deflationary.

This will also greatly benefits LPs who earn rewards in the form of Min which will then respectively earn hodler rewards as well on top of the Min that they provided for liquidity,


I think this is a good idea. It will reward long term investing as well and attract more people to the dex. Even though the fee amount is nominal, over time it will also compound as more and more rewards accrue. Especially if we go into a bull run and sell volume soars when people trade one project for the next thing and exit Min to go make gains elsewhere. It will definitely give us a little more power to withstand turbulent times and high sell pressure as well. I am all for this! Hope it makes it up there as a proposal.


I really love this proposal, and with my staking plus proposal it would be a very very very very good complement, super good idea, it would have more uses and rewards for MIN.

the idea of charging a fee only to those who sell MIN in MINSWAP and rewarding those who do staking and do not sell, is a brilliant idea. The selling pressure would go down, and anyway what is sold will go to those who keep their commitment to MIN.

Minswap needs this proposal, I am in favor of this idea.


This proposal is very good, a 0.1% fee for those who sell their MIN and rewarding a staking is good. This would not affect Farming at all (I say 0.2%).

The fee would be 0.4%.or 0.5% I would pay the fee, let the stakers earn it. And save and earn more.

The only pool that would have that change would be with ADA-MIN, if no one wants to pay that fee then it would be to use other POOLS (which is twice as expensive 0.3%+0.3%+IMPACT FEE).

Very very good idea, I like it.

This does not find of using farming to pay staking, the token already sold would be a reward for those who just want to have MIN and not be hit by inflation.

SUPPLY AND DEMAND the price of MIN would explode because the amount of coins for sale decreases.

The faming in ADA-MIN increases and everyone is happy we have staking and MIN would have a use.


I really wish more people can see this one. I think it at least deserves a vote. Anyway we can get more eyes/ opinions on it?


Eventually people will see your proposal. Hopefully it will be approved by the community

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May be ínstead of financing this idea with new fees we could divide the 2 Ada batchers fee and take part of it for other pourposes. Ie a swap is done by someone that has 25,000 min. 1.5 ada goes for the development of the dex, 0.25 are discounted for the trader and the other 0.25 are taken to provide as reward for ada min lp providers or for min stakers. Another example, if the swapper does not have any min, 1.5 ada go for the development and 0.5 ada go to the reward

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Nice idea, but I think it all depends on the minswap team’s sidechain expenses.