[MIP-#4] Resetting for PMF: Realigning Mangrove’s Structure and Tokenomics

đź—ł Governance
1

CONTEXTE

Mangrove is at a critical stage in its development. After four years of work, the project has yet to achieve commercial success. The treasury is significantly depleted, and refinancing options in its current state are limited. Without action, the project is almost certainly doomed to fail. Significant measures can and must be taken immediately to give Mangrove a chance to survive.

The deployment on Blast demonstrated that the core engine works, even though vanity metrics are not a measure of success and the rest of the app is suboptimal. However, this core engine is a significant asset that can be leveraged.

In light of this, new momentum has been initiated to capitalize on what has already been built, with a strong focus on product-market fit. This includes new leadership, a new operating model, and a complete reorganization aimed at securing Mangrove’s future and finding PMF within the next six months. Significant efforts will be required from all stakeholders to maximize the project’s chances of success.

Mangrove is a project with significant legacy and has experienced multiple managerial and technical challenges. These challenges must be addressed now, as continuing on the current trajectory would lead to certain failure within eight months.

RECENT PROGRESS

  • Burn Reduction:
    Ensure resources are sufficient to find PMF and stretch the limited funding:
    Done, burn rate reduced by over 60%.

  • Organization:
    Return to an agile startup-like structure:
    Done, with only the DAO-tokens aspects remaining.

  • Tokenomics:
    Realign tokenomics to reflect the stage of a seed stage project:
    In progress, see the following proposal.

The tokenomics must reflect the actual stage of the project. While Mangrove has been under development for several years, its current commercial state is closer to a seed-stage project than one ready for a TGE with an active community, PMF, and recurring users.

Currently, almost all distributed tokens are entirely vested, even before the MGV token becomes transferable. Years of building and contributions from multiple teams across different versions of the product have left almost no tokens available to incentivize current contributors, recruit new talent, secure funding, or even enable opportunities such as a launchpad at the time of the TGE.

To realign the tokenomics with the project’s actual progress and maximize Mangrove’s chances of success—particularly in securing funding—it is essential to act now while there is still time to rebalance the distribution.

While Mangrove has been almost entirely rebuilt recently and the current community is limited, it is important to acknowledge the work done by various teams over the years that have shaped the current state of Mangrove. The same applies to investors who have supported the project for so many years. Efforts are now required simply to give Mangrove a chance to succeed. This proposal, while not perfect, aims to be as fair as possible given the long road ahead for the project.

TWO PROPOSALS

  • 1. DAO Organization

To return to a more traditional operating mode for the startup that we are, we propose pausing the DAO until we are closer to the TGE and have demonstrated traction.

Proposal: Move DAO tokens to the ADDMA foundation.

  • 2. Tokenomics Revamp

To realign the tokenomics with the project’s actual stage.

Proposal: Tokenomics Changes

Dilution:
-7% dilution for first and second-round investors (Not the last one of 2024)
-70% dilution for founders, former core team members and former contributors.

Relocking:
-15% unlocked at TGE, with the remaining 85% subject to a 2-year linear vesting schedule for all stakeholders.

If accepted by the DAO, these changes in distribution would free up 15% of the total token supply, enabling Mangrove, should it gain user traction, to launch the token and continue its vision of becoming a liquidity hub.

CONCLUSION

By implementing these changes now, we are giving Mangrove a chance to succeed and allowing the current team to focus solely on finding a PMF within the financial horizon that has been given.

3 Likes
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These proposals look like a realistic attempt to keep Mangrove viable. The 60% burn rate reduction and shift to a startup-like structure are practical moves. Pausing the DAO and revamping tokenomics seem like reasonable steps to give the project a fighting chance in the next six months. The token distribution changes - particularly the significant founder dilution and controlled vesting - appear designed to create flexibility for future growth. Changes were needed, way to go :deciduous_tree:

1 Like
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Mangrove has always supported builders like us, and we stand behind efforts to give it the best possible shot at long-term success. Adapting is key to its success.

The proposed changes, combined with recent progress, aim to extend its runway and realign incentives to focus on finding PMF, and seem to me like a necessary step worth trying!

1 Like
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As a previous contributor, I appreciate the momentum this proposal brings. It’s refreshing to see the initiative toward a leaner, more agile operation. That said, I’d suggest we consider an even more nuanced approach for those who have previously extracted significant value from the project without contributing proportionately—or who have benefited from treasury allocations that weren’t entirely aligned with ongoing performance. In my view, a further, subtle adjustment for this group, potentially bringing their dilution closer to 90–95%, could help rebalance the alignement, while leaving founders intact.

Overall, these changes, alongside the shift in leadership, are a positive sign for Mangrove’s fresh start. I’m excited to see the project reignite its momentum and focus on achieving product-market fit in the coming months.

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The idea of a common dilution is a way to avoid hand-picking contributors one by one and getting into more personal feelings.

Everyone affected by the dilution has an open door to come back and work on the project, allowing them to recover their tokens at a faster rate.

6

I fully support this strategy, it’s a necessary shift to keep Mangrove alive and give it a real shot at reaching PMF. The project still needs to iterate multiple times, and this reset is what allows that to happen.

I hope the community understands how important it is to follow through on this. There’s still a lot of work ahead, and Mangrove needs the flexibility to bring in contributors over the long run. This isn’t a step back, it’s a move to build a stronger foundation and keep pushing forward.

1 Like
7

I appreciate the intent behind a common dilution to maintain neutrality and avoid personal judgments. However, given the significant treasury burnt, it might be worth considering a graduated approach. For example, a contributor with a four-year tenure, who has seen more of the project’s challenges and arguably contributed to deeper resource depletion and also bad lead, might face a harsher penalty—around 95%—while someone with a one-year tenure could be adjusted by about 70%. Founders remain not affected.

This approach reflects the differing levels of impact on our treasury, such as the underutilized DAO governance setup and governance leading with an insane cost at the end, while still keeping the door open for contributors to rejoin and help rebuild.

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Here’s the snapshot link for this proposal:

https://snapshot.box/#/s:mangrove.eth/proposal/0x01f13415b09701470ffca121f375514f70db7f82c6be2e03d7e76dc2d7c77668

Thank you to everyone taking the time to participate.