Mugen Finance will start on launch with 0 tokens in total. All tokens that will ever be generated for the protocol will be done so through depositing into the treasury. The pricing model for minting is based on protocol TVL. Each time a user deposits funds into the treasury it increases the price. Minting is set to start at approximately 12-13$ and the current minting price can be checked through the contract.
A negative exponential curve was chosen to allow for early individuals to be rewarded and at the same time not drive away later investments by increasing the price too quickly. Over time the curve will flatten out and allow for more individuals to enter the ecosystem.
All Tokens that come into existence will be distributed to depositors. The team is unable to mint new tokens. Depositing into the treasury is the only way. While token inflation is infinite and investors can deposit at any time the mint price will always increase while the market price will not. Creating arbitrage opportunities if individuals decide to do so. This allows for inflation only when there is enough demand to meet that inflation.
xMugen is the staking token for Mugen Finance. The supply will be based off of how many Mugen tokens are staked at any given time. Staking Mugen will give you xMugen at a 1:1 ratio.
If you stake 100 Mugen you will receive 100 xMugen.
xMugen receives the yield generated from the strategies.