Introduction

MIRO staking mechanism was inspired by some of the ‘vote escrowed’ staking mechanisms that exist in the DeFi space, namely Curve’s veCRV staking model. Albeit, with some clear differences catered to ensure the shariah compliance of the model and relevance within our token economy. MIRO is a fixed staking model that aims to allocate voting power in a manner that favors those users who stake MRHB for longer time periods. A user’s voting power will also determine their pro-rata share of the rewards that will be distributed to users. In a nutshell, the longer you stake, the more voting power you get and the higher your pro-rata share of the reward distribution should be. The key difference between MIRO and other ‘vote escrowed’ staking models is that MIRO staking is based on the Islamic concept of . Whereby users are required to complete a task/objective for the Marhaba ecosystem in order to claim any monetary benefit offered by the staking mechanism. By locking your MRHB for X amount of time, users are unlocking certain utilities, one of which is the right (and not the obligation) to participate in governance in exchange for rewards.

Initially, the rewards we will distribute will be in MRHB via token inflation. We are allocating 100 million MRHB over a period of 4 years. Ideally, we would want MIRO to follow a fee redistribution model whereby any protocol fees are redistributed indirectly to MIRO stakers through periodic MRHB token buy backs. However, considering the Marhaba ecosystem is not at full fee generating potential we will use token inflation for the first 4 years and then transition into a model where any profit is used to buy back MRHB from the open market and redistribute to MIRO stakers. Depending on the viability of token buy backs and redistribution, it may be the case that the Marhaba DAO carries out the redistribution within some other type of framework.

The main objectives behind MIRO are:

1. Reduce floating supply and sell pressure on MRHB token by unlocking further utility and monetary benefit to MRHB holders.

2. Create an incentivized method of governance whereby MIRO stakers are required to participate in governance in order to earn rewards/protocol profit. Those users who stake for longer will have more voting power than those who stake for shorter time periods.

3. Create a model whereby staking MRHB allows for community driven governance.

4. Unlock certain utilities and benefits across the Marhaba ecosystem in a ‘stake for access’ style mechanism.

5. Transition into a fee redistribution model that captures economic flow of value once the Marhaba ecosystem is at full fee generating potential.