# WELL 2.0 : Unification of WELL and MAMO with BuyBack Reserve Rewards **URL:** \ **Category:** Ideation & Discussion\ **Tags:** proposal, idea, moonriver, moonbeam, discussion\ **Created:** [November 1, 2025, 5:22pm UTC](https://forum.moonwell.fi/t/well-2-0-unification-of-well-and-mamo-with-buyback-reserve-rewards/2007 "2025-11-01T17:22:35Z")\ **Posts on this page:** 3\ **Page:** 1
**Author:** ![SasquatchBro](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/sasquatchbro/32/3980_2.png) [@SasquatchBro](https://forum.moonwell.fi/u/SasquatchBro)\ **Post date:** [November 1, 2025, 5:22pm UTC](https://forum.moonwell.fi/t/well-2-0-unification-of-well-and-mamo-with-buyback-reserve-rewards/2007/1 "2025-11-01T17:22:36Z")
This proposal seeks to fundamentally restructure Moonwell’s token architecture and tokenomics. We propose the complete **absorption of the Mamo token back into the WELL token **, establishing** WELL as the sole, hybrid governance and utility token** for the Moonwell ecosystem. Accompanying this unification, we propose a new tokenomics model: the **Buyback-Lockup-Reserve Rewards (BLLR)** mechanism. This model utilizes protocol revenue to execute WELL buybacks and acquire a diversified Treasury Reserve of high-value assets (specifically **Bitcoin (BTC) and Ethereum (ETH)**), which are then distributed as rewards to long-term WELL lockers. This mechanism is explicitly designed to maximize long-term holder alignment without introducing any token burn mechanics. **2. Motivation** The current dual-token structure (WELL/Mamo) introduces unnecessary complexity in governance, liquidity management, and community understanding. Consolidating the tokens simplifies the ecosystem, allowing for focused liquidity and unified governance. The BLLR tokenomics upgrade addresses three primary challenges: 1. **Value Accrual:** Directly tying protocol revenue to the acquisition of highly sought-after, non-native assets (BTC/ETH) provides a more compelling value proposition for WELL holders than native token inflation or complex fee structures. The unified WELL token will now capture _all_ fee revenue, including that previously allocated to Mamo. 2. **Supply Management: **The** dynamic buyback mechanism** provides consistent, structural demand for WELL, while the required lockup reduces the circulating supply, maximizing price stability, especially during market downturns. 3. **Sustainability:** By rewarding commitment with diversified, hard crypto assets, we create an incentive structure resilient to market volatility and inflationary pressures. **The BLLR mechanism is explicitly designed to offer superior incentives compared to models focused only on native token scarcity (e.g., BNB, pump.fun) or simple native yield (e.g., Hyperliquid’s buyback-to-stake).** **3. Proposal Components** **Component 1: WELL/Mamo Token Unification** The Mamo token will be decommissioned and its functional utility and market value will be absorbed into the enhanced WELL token. **A. New WELL Functionality (Hybrid Token):** - **Governance:** The unified WELL token will serve as the sole governance token, required for submitting proposals and voting power. - **Utility:** WELL will be used for staking, earning protocol fee distribution, receiving liquidity mining incentives, **and capturing revenue generated from integrated yield-optimization and liquidity pools (Mamo’s original function), allowing WELL holders to directly accrue all fee revenue streams.** **B. Mamo Exchange Mechanism:** The absorption will be executed through a time-gated, smart contract-driven swap mechanism: - **Conversion Rate Determination:** The mandatory conversion rate for Mamo to WELL will be established based on the **30-Day Time-Weighted Average Price (TWAP)** of both tokens immediately preceding the governance vote. This fair, consensus-driven methodology ensures the exchange reflects pre-merger market valuation. - **Mandatory Exchange Period: **Mamo holders will be granted a** 60-day mandatory exchange period** following the proposal’s implementation. During this time, Mamo must be deposited into the conversion smart contract to receive WELL. - **Smart Contract Execution:** A secure, audited smart contract will handle the one-way swap, automatically exchanging Mamo for WELL based on the final determined ratio. - **Mamo Liquidity Migration:** Existing Mamo liquidity pools will be dissolved. Assets used to back Mamo’s functionality will be migrated into the unified WELL Treasury, and the corresponding WELL tokens will be used to facilitate the swap. - **Finality:** Upon the conclusion of the 60-day window, the Mamo token contract will be fully decommissioned and paused. All remaining Mamo tokens outside the conversion contract will be rendered inert and permanently unusable, ensuring WELL is the sole token of the ecosystem. **Component 2: Tokenomics Upgrade: Buyback-Lockup-Reserve Rewards (BLLR)** This mechanism replaces previous inflationary rewards or fee-sharing mechanisms with a self-sustaining, non-dilutive system. **A. Tiered Buyback & Reserve Acquisition (Dynamic BLLR):** Protocol revenue allocation will shift from a fixed rate to a dynamic, tiered structure determined by defined market conditions and volatility indicators, maximizing structural demand for WELL when it is most needed. - **Tier 1: Growth Mode (WELL Price \> 30-Day Avg. Price + 10%):** - **Tier 2: Standard Mode (WELL Price within 10% of 30-Day Avg. Price):** - **Tier 3: Stress Mode (WELL Price \< Predetermined Floor Price OR 24h Trading Volume \> 200% of 7-Day Avg.):** - **WELL Buyback:** Revenue allocated for WELL buyback will be used to continually market-buy WELL from the open market. This WELL is immediately locked and removed from circulating supply. - **BTC/ETH Reserve:** The remaining allocated revenue will be used to purchase and accumulate **Bitcoin (BTC) and Ethereum (ETH)** into a dedicated, community-governed Treasury Reserve. - **B. WELL Lockup and Reward Earning (Enhanced Incentive Model):** The incentive structure is designed to heavily favor long-term holders by offering rewards in appreciating, non-native assets, creating a superior value proposition over native token yields. - **Lockup Requirement:** To earn BLLR rewards, users must lock their WELL tokens for a minimum period (1 month up to 4 years). - **Time-Weighted Voting/Reward Power ( **$\text{veWELL}$** ):** $$\text{veWELL} = \text{Locked WELL} \times \text{Multiplier}$$ **Lock Duration Multiplier** 1 month (Min) $1.0\times$ 1 year $2.0\times$ 2 years $3.0\times$ 4 years (Max) $4.5\times$ - - **Tiered Lock Multiplier:** The multiplier is non-linear and tiered to grant increasingly generous rewards for longer-term commitment, maxing out at $4.5\times$ for the maximum lock. This amplified $\text{veWELL}$ value determines the user’s share of the reserve rewards and governance power, creating a powerful incentive to lock tokens for stability. - **Reward Distribution (BTC/ETH):** Rewards are earned based on the user’s $\text{veWELL}$ balance relative to the total $\text{veWELL}$ supply. Rewards accrue as **real BTC and ETH** from the Reserve, providing a non-dilutive, diversified yield stream that is insulated from WELL price volatility. **C. Redemption Mechanism (User Choice):** - **Redeemable Assets:** The accrued rewards represent a claim on the BTC and ETH held in the Reserve. - **User Choice Redemption:** When a user chooses to claim their rewards, the protocol will disburse the fiat-equivalent value of their accrued rewards in the **cryptocurrency of their choice** from the Reserve (BTC or ETH), or a stablecoin (e.g., USDC), allowing the user to immediately swap for their desired asset. **D. Exclusion of Burn Mechanism:** - **No Token Burning:** This proposal explicitly avoids a native WELL token burning mechanism. The focus is exclusively on maximizing value for long-term lockers through external asset acquisition and permanent removal of buy-backed tokens from circulation via the lockup. **E. Value Maximization Addendums (Protocol Utility Sinks)** To further increase structural demand, reduce slippage, and incentivize long-term commitment without introducing lending risks, we propose two critical utility mechanisms: **1. Strategic Protocol-Owned Liquidity (POL) Integration:** A mandatory $10\%$ portion of the WELL tokens bought back via the BLLR mechanism (before the final lockup) will be paired with stablecoins (e.g., USDC) from the existing Moonwell Treasury or BLLR revenue stream. This created LP token will be permanently held and managed by the Protocol’s Treasury, achieving: - **Deeper Market Depth:** Reduces price slippage for all market participants, making WELL more attractive to institutional investors and large traders. - **Permanent Stability:** Creates a structural, non-mercenary floor of liquidity that cannot be withdrawn. - **Secondary Revenue:** The POL itself earns trading fees, creating a perpetual secondary revenue stream that is recycled back into the Moonwell ecosystem. $\text{veWELL}$ holders will receive a substantial and tiered discount on protocol fees generated from Moonwell’s core money-market activities (i.e., borrowing interest and liquidation penalties). - **Mechanism:** The fee rebate percentage is directly proportional to the user’s $\text{veWELL}$ lockup multiplier (Section 3.B). Longer lockups grant larger discounts. For example: - **Incentive:** This mechanism creates a strong utility sink for the WELL token that directly lowers the operational cost of using the Moonwell platform, providing a tangible economic benefit to committed long-term users. **4. Implementation Steps (High-Level)** 1. **Smart Contract Audit:** Develop and audit the BLLR and unification smart contracts (WELL 2.0). 2. **Governance Vote:** Execute a full on-chain vote to approve the token unification ratio and BLLR model. 3. **Token Swap:** Initiate the Mamo-to-WELL swap period. 4. **Mechanism Activation:** Activate the BLLR smart contract, initiating the automated buyback, BTC/ETH acquisition, and rewards accrual system. **5. Conclusion and Next Steps** The WELL 2.0 unification and BLLR tokenomics represent a critical step toward maximizing long-term sustainability and optimizing the token holder experience. By simplifying the token model and rewarding commitment with hard crypto assets, we ensure Moonwell’s value proposition remains highly competitive in the DeFi landscape. We urge delegates to review this proposal and provide feedback. The next step will be to define the exact Mamo/WELL conversion ratio and the specific revenue allocation percentages before moving to an on-chain vote. ---
**Author:** ![surfingdegen](https://avatars.discourse-cdn.com/v4/letter/s/85f322/32.png) [@surfingdegen](https://forum.moonwell.fi/u/surfingdegen)\ **Post date:** [November 4, 2025, 4:23pm UTC](https://forum.moonwell.fi/t/well-2-0-unification-of-well-and-mamo-with-buyback-reserve-rewards/2007/3 "2025-11-04T16:23:59Z")
What’s the cost to implement? This is basically a restructuring of everything LunarLabs has built. ---
**Author:** ![WellMaxi](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/wellmaxi/32/3803_2.png) [@WellMaxi](https://forum.moonwell.fi/u/WellMaxi)\ **Post date:** [November 6, 2025, 3:35am UTC](https://forum.moonwell.fi/t/well-2-0-unification-of-well-and-mamo-with-buyback-reserve-rewards/2007/4 "2025-11-06T03:35:15Z")
Thats gonna be a “NO” for me bro. These two tokens serve completely different purposes, and merging them would go against the balance and overall roadmap… MAMO was designed to drive users, liquidity, and ecosystem activity to Moonwell… It’s value prop is that its making money through swap pairs Capturing trading activity on Aerodrome. Moonwell is a defi community bank. If anything, MAMO should become more independent, not less. It needs to be free to interact with other protocols, build partnerships, and expand its own utility beyond just Moonwell. dLocking it permanently under WELL limits its growth and kills one of the few creative, yield-generating layers in the ecosystem. WELL is governance. MAMO is utility and liquidity. They complement each other — they shouldn’t be married. The only part of this proposal I agree with is the idea of using protocol revenue to accumulate hard assets like BTC and ETH. That’s something I’ve supported before — building a real treasury backed by solid assets, not endless emissions. But merging the tokens? No. Keep them separate.