EX Initial Minting Event
The EX Initial Minting Event represents a critical phase in the Hubble Protocol's deployment, establishing the initial supply of the pegged token $EX with appropriate backing from $stS. This documentation outlines the structure, mechanics, and economic implications of this event to help users understand how they can participate and what to expect.
Introduction to the EX Initial Minting Event
The $EX Initial Minting Event follows a two-phase approach designed to provide advantages to early supporters while ensuring protocol stability from inception. This structured approach creates appropriate incentives while maintaining a healthy Death Spiral Risk (DSR) ratio from the beginning of protocol operations.
For this event, a "Hubbler" is defined as any user with at least 1 $HUBBLE staked in Mission Control. This minimum threshold ensures that participants have demonstrated commitment to the protocol's governance before receiving minting privileges.
Phase 1: Discount $xEX Minting
The first phase allows qualified participants to mint $xEX (locked $EX) at preferential rates, with different tiers based on participation history. This phase specifically targets early supporters while implementing appropriate limits to maintain economic balance.
OG Staker Allocation
Users identified as "OG Stakers" (those among the first 120 stakers in Mission Control) receive the most favorable terms:
Minting rate: 0.90 $stS = 1 $xEX
Minting limit: M $xEX per 1 $HUBBLE staked in Mission Control
M is dynamically determined based on total $stS acquired through Genesis
This preferential rate rewards the earliest supporters who demonstrated confidence in the protocol before broader adoption.
Regular Hubbler Allocation
All qualified Hubblers (including OG Stakers who wish to mint beyond their OG allocation) can participate at slightly adjusted terms:
Minting rate: 0.96 $stS = 1 $xEX
Minting limit: N $xEX per 1 $HUBBLE staked in Mission Control
N is dynamically determined based on total $stS acquired through Genesis
Importantly, Hubblers who are also OG Stakers can participate in both allocation groups, maximizing their potential discount minting capacity.
Minting Parameters Calculation
The values M and N are calculated to ensure the protocol can compensate for 50% of the deficit created during the discount minting phase, with this allowance split equally between OG Stakers and regular Hubblers.
For example, if the protocol has acquired 50,000 $stS through Genesis, it would allow for a 50,000 $stS deficit in each group during Phase 1. This would translate to:
OG Stakers: 500,000 $xEX limit (at 0.90 $stS per $xEX)
Regular Hubblers: 1,250,000 $xEX limit (at 0.96 $stS per $xEX)
In this scenario, the total $xEX supply would reach 1.75 million at the conclusion of Phase 1, backed by 1.65 million $stS. This creates an initial DSR of 0.942, comfortably above the critical threshold of 0.9 that could trigger special epoch mechanics.
Phase 2: Regular $EX Minting
The second phase transitions to standard 1:1 minting, establishing the baseline for future protocol operations. This phase completes the initial supply establishment while maintaining economic stability.
The total supply available for Phase 2 minting matches exactly what was minted in Phase 1. Continuing our example, if 1.75 million $xEX were minted during the discount phase, then 1.75 million $EX would be available for 1:1 minting with $stS in Phase 2.
This balanced approach ensures that after both phases conclude, the protocol would have a total supply of 3.5 million $EX backed by 3.4 million $stS, resulting in a DSR of 0.971. This structural design guarantees that the protocol cannot begin operations with a DSR below the critical threshold of 0.9, preventing immediate activation of special epoch mechanics.
Strategic Implications
The two-phase structure creates several important economic and strategic benefits:
Early Supporter Rewards: The discount minting phase rewards those who demonstrated early commitment to the protocol through governance participation.
Protocol Stability: By carefully calibrating the permitted deficit, the design ensures a healthy initial DSR that prevents immediate activation of special epoch mechanics.
Community-Driven Supply: The total eventual supply is directly determined by community participation in Phase 1, creating alignment between supply growth and demonstrated interest.
Transparent Economics: The clear mathematical relationship between phases allows all participants to independently verify that protocol parameters remain within safe boundaries.
For users looking to participate in the EX Initial Minting Event, monitoring announcements regarding the specific timing of each phase and the final determination of minting parameters M and N will be essential to maximize available opportunities.
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