[MTSS 201 Class] Appendix - Mitosis DNA: A Sustainable Ecosystem Where Everyone Wins

Mitosis DNA: A Sustainable Ecosystem Where Everyone Wins

Most blockchain projects struggle to maintain momentum. Why? Because users, developers, validators, and liquidity providers are often pursuing their own short-term gains, with no real reason to stick around. Mitosis aims to change that with the DNA Program — a new incentive model that connects everyone’s success.

The Core: A Three-Token System

The DNA Program revolves around three unique tokens, each serving a specific role:

MITO

The base utility token used for transaction fees, staking, and DeFi activities.

gMITO

A governance token earned by staking MITO. It’s non-transferable, used solely for voting, and increases in power over time based on long-term participation.

Locked MITO (LMITO)

A reward token that unlocks gradually over time, and faster if the user participates in governance. It’s designed to reward patience and long-term engagement.

This structure creates a healthy tension between immediate utility and long-term influence—exactly what sustainable ecosystems need.

How Rewards Are Distributed

The DNA Program distributes rewards in two key directions:

1. Vault Reward Pool
   Vaults are where external liquidity enters the Mitosis ecosystem. gMITO holders vote on which vaults should receive rewards.
   This creates a flywheel: more votes → more rewards → more liquidity → more value → more votes.
2. dApp Reward Pool
   Apps built on Mitosis earn rewards through two channels:
   • Max Pool: Automatically allocates rewards based on how much MITO the app uses—purely math-based.
   • Vote Pool: Allows gMITO holders to support promising apps via votes—adds flexibility to support innovation.

This dual-track system blends objectivity with community-driven flexibility.

What’s in It for Each Stakeholder?

• Users earn yield from vaults and can accelerate LMITO unlocking by participating in governance. The longer they stay, the more influence and rewards they get.
• Validators become more than block producers—they help guide the ecosystem by voting on reward flows. Their success is linked to the growth of the apps they support.
• Developers get predictable funding by integrating MITO, and can receive additional support through gMITO votes.
• Vault Projects receive first access to rewards, helping them attract liquidity and even customize fee settings through governance.

Governance That Actually Works

Unlike many blockchains where voting power can be bought, gMITO cannot be transferred. This prevents vote buying, flash loan attacks, and ensures that those who participate consistently have real power.
gMITO holders vote on:

• Vault and dApp reward allocations
• Fee and revenue structures
• Custom rules for specific vaults

A Two-Phase Evolution

The DNA Program doesn’t launch all at once—it matures gradually:

Phase 1 – Laying the Foundation

Initial network operations, early gMITO accumulation, and user onboarding.

Phase 2 – Community Governance

gMITO holders start governing reward distributions and setting ecosystem parameters.

This staged rollout ensures both stability and smooth decentralization.