4.3 The Governance Mechanism of MAGC Token
Users holding MAGC token(s) can also earn MAGC rewards by redeeming the collateral from the Collateral Debt Position (CDP) within the protocol.
It requires MAGC staking for polling to vote and MAGC will be the collateral for polling for the new governance models. In the future iterations of Magic Cube, MAGC will provide further uses to increase the utility and value of the protocol.
MAGC is also used to incentivize users to increase their earnings by staking LP tokens that are minted by providing liquidity for MAGC and mcAsset(s). The proceeds are paid to users from newly minted MAGC(s) through annual inflation, which gradually increases the total supply of MAGC.
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