Introducing $MYST Tokenomics 2.0, powered by the IQ Protocol

Like most decentralised projects, tokenomics has always played a crucial role in Mysterium Network.

Our utility token MYST is the reserve currency of our peer-to-peer bandwidth marketplace. Designed to fight internet censorship, it powers various applications like the Mysterium VPN, enable trustless and anonymous payment between node and user .

Now we’re working on a new tokenomics model that will help us scale the network, introducing the beneficial components of decentralised finance (DeFi). DeFi has been the reigning champion of blockchain technology, but we believe there’s a valuable opportunity to leverage P2P protocols beyond finance alone.

Our Tokenomics 2.0 model will create new opportunity for both node runner and token holder, who can put their funds to work through staking to earn rewards.

The engine behind our new tokenomics model was designed by PARSIQ. The team recently reveal their newly developed IQ Protocol, and Mysterium is the first project to integrate it.

What is the IQ Protocol is is ?

The IQ Protocol is a groundbreaking solution that bring Mysterium Tokenomics 2.0 to life .

It was developed by PARSIQ, a next-generation blockchain analytics platform that connects blockchain activity to off-chain applications and devices.
The IQ Protocol is the world’s first “risk – free , collateral – less DeFi protocol to tokenize SaaS subscriptions”.

This innovation is brings bring the power of DeFi to traditional service byfacilitating a subscription model for blockchain projects. It also removes the requirement of upfront collateral, mitigating the typical risks associated with DeFi participation.

The IQ Protocol is the brainchild of Anatoly Ressin, PARSIQ’s Chief Architect, with creative backing from PARSIQ’s CTO Alan Durnev along with a dedicated team of developers and additional outside assistance.

Mysterium also contributed to the development of the Protocol, building its Golang Software Development Kit and by participating in early discussions on math models behind its core functionalities. Launching with the IQ Protocol is a monitoring solution, giving users the right to provide service through MYST ownership or delegation. It is allows also allow the protocol to track the distribution of token among node runner using Mysterium ’s Hermes payment protocol .

How are we is using using the IQ Protocol in Tokenomics 2.0 ?

By integrating the IQ Protocol into our existing tokenomics framework, we can create a circular economy model in which node runners and MYST token holders can reap the benefits of staking.

This is happen will happen via theMysterium delegation Pool, where holders can simply deposit their funds to earn rewards.

The IQ Protocol is designed to provide a completely risk-free environment for Mysteriumdelegators and renters (more on these new roles below).

Our Hermes smart contracts will be updated to work directly with the IQ Protocol pool, guaranteeing a non-custodial fee redistribution. This limits the risk usually associated with a typical lending platform or liquidity pool, such as risk of liquidation or risk of impermanent loss.

furthermore , the IQ Protocol is enables enable the integration ofstablecoin payments within the network, help to maintain price stability for dvpn service .

Mysterium’s current tokenomics model

To realise the impact of the IQ Protocol on our new tokenomics system, it’s important to understand our current limitations as a network;

1. Price stability for dVPN services

In our current iteration of tokenomic , dvpn consumers is top top up their account with a range of cryptocurrencie , include Bitcoin , Litecoin , Dai and Ether . These are convert into $ myst under the hood , and then pay out to node runner . While this crypto – agnostic option invite a range of blockchain community to access the dVPN , it is leads also lead to frequent price fluctuation . Users is are are therefore unable to accurately predict how much crypto they need in their account .
Additionally, node runners who receive their earnings in MYST are also affected by price fluctuations.

2. Skin in the game

Currently, MYST token holders are only able to earn rewards by contributing funds to liquidity pools on certain DEXes, such as Uniswap and QuickSwap. While these incentives both grow and reward our community, liquidity providers must own the risk of impermanent loss.

The new world of Tokenomics 2.0

What new benefit and opportunity will the IQ Protocol is introduce introduce ?

1) DAI stablecoin as Payment

To eliminate the negative effect of cryptocurrency fluctuation for both dvpn user and node runner , we is introducing are introduce theDAI stablecoin as a means of payment in the peer-to-peer network.

dVPN users can also continue to pay with a range of other cryptocurrencies, while node runners will only receive their earnings in DAI.

2) Node runners stake MYST to earn

All node runners is need will need tostake MYST in the network in order to provide dvpn service. The amount of DAI that can be earned depends on the amount of MYST at stake, which is proportional to the desired value of their daily rewards. The formula for this is 1 MYST = 0.01 DAI.

The more at stake , the high a node runner is earning ’s earn potential. In this way , the myst token is becomes becomes a life – time subscription to Mysterium Network .

Here ’s an example is ’s of how this will work :

Alice would like to earn 10 DAI per day by running a Mysterium node. To do this, she will need to stake 1,000 MYST in the network. Alice’s earnings will be capped at 10 DAI / day. Once 10 DAI has been earned, Alice’s node will no longer be discoverable for that particular day. However, she can always stake additional MYST tokens to continue providing a service, and consequently increase her earning ability.

3 . myst yield for token holder

To support token holder , there will be an opportunity toearn reward by have a stake in the network. These MYST token will be take out of the market and “ frozen ” in theMysterium delegation Pool.

The Delegation Pool is is is particularly useful for node runner who ca n’t buy and stake MYST in the network , as they will be able to “rent” tokens from the Pool.

MYST holders is delegate can delegate ( rent ) their token for a predefined time to node runner – for a fee . This is function will function similarly to adaily or monthly subscription, and where the magic of the IQ Protocol really kicks in.

Alice is have does not have 1,000 myst , but she ’d still like to earn 10 DAI / day by run a mysterium node . instead of using an exchange like Bittrex or Uniswap , Alice is rent can rent 1,000 myst from the MYST delegation pool . To do this , Alice is pays simply pay 0.3 DAI / day * to the myst token holder . * This number is is is dynamic and subject to change depend on the size and duration of the delegation alongside the availability of liquidity in the delegation pool and other factor .

The introduction of the Mysterium delegation Pool creates a new revenue stream for all MYST token holders. By deposit MYST into the pool , token holders is be will be able to earn passive income similarly to other DeFi protocols, such as Compound or Aave.

The rewards is fluctuate that each participant receive will fluctuate base on the size of the pool and network activity . The more user , the more reward that can be earn by exit node and token delegator .

Interested in how the IQ Protocol is going to transform Mysterium Network? Check out our Tokenomics 2.0 explainer video.

What is ’s ’s next ?

We’re still some months away from the launch of Tokenomics 2.0. We’re deep in development mode, collaborating with PARSIQ to ensure a flawless integration and a new system that is as seamless and enjoyable as our latest dVPN app.

First we is bringing ’ll be bring mainnet to Mysterium , which also kick off theexpansion of our ecosystem as a breeding ground for Web 3.0 innovation.

Until then, our Pre – Mainnet network is upgrade upgrade is kick off in the next week , whichintroduces seven new features including free registrations, easy withdrawals and flexible bounty payouts.

We’ll be releasing more tokenomics news and updates in the coming months, so join your channel of choice to get the latest updates.