The Oven V2 Updates

Welcome to our Mooncake fam! We have huge news about our beloved Mooncake oven that is going to not only super-charge it, but also bring you the power to heat it up!

If you’re new around here, the Oven is a smart contract that takes a % of every Mooncake transaction and uses it to buy Pancakeswap’s $CAKE token. It stakes the $CAKE in the syrup pool, then uses the $CAKE earnings to buy back & burn Mooncake.

The Oven has burned over 53M Mooncake during the first 90 days of Mooncake’s existence. It was also in the top 1% of cake holders in the world for over 5 weeks leading up to our massive buy back & burn during the Mid-Autumn Festival!

We’re keeping this track record strong by laying out changes for the Oven V2.

Read on for more…

The Oven process will be split into two: The Oven & the Engines

First things first: the processes behind the Mooncake Oven is being split into two: the Mooncake Oven & the Mooncake Engines. Here’s why.

Right now, we use the phrase “mooncake oven” to describe the process of buying CAKE, staking CAKE, harvesting CAKE rewards, and using those CAKE rewards to buy back & burn Mooncake.

The updated Oven contract will let it do much more than only interact with the CAKE ecosystem. It will be able to interact with many ecosystems at once and generate multiple streams of revenue.

This means that the project will diversify how it generates the burn pressure that reduces the Mooncake supply.

We won’t need to be reliant on one ecosystem, and instead will be able to run the stake/swap process in many different ecosystems, allowing the project to tap into the growing TVL of DeFi.

We’ll call these streams of revenue engines.

For example, we could have engines in any of the following ecosystems:

• Pancakeswap — CAKE
• Apeswap — Banana
• Mdex — MDEX

Part of the staking rewards revenue generated from the CAKE engine, Banana engine, and Mdex engine would go back into the Oven, which will buy back & burn Mooncake, like it does right now. The other part of the reward revenue will get re-staked for compounding, same as today.

Here’s an example of how the adjusted Engine-Oven process will work. We’ve used the existing CAKE engine process as an easy example.

— The Engine Process Generates Revenue through Staking

• Step 1: Intake
  The engine claims 1% of the Mooncake from every MOON transaction
• Step 2: The Pool
  The engine swaps MOON for CAKE and stakes the CAKE in the CAKE manual Syrup Pool (PCS)
• Step 3: The Reward
  The CAKE manual Syrup Pool (PCS) generates CAKE rewards
• Step 4: The Exhaust
  Part of the $CAKE Reward is compounded back into the CAKE Manual Syrup Pool (PCS) and the other part is sent to the Mooncake Oven

— The Mooncake Oven Buys Back & Burns Mooncake

The Mooncake oven will take its assigned portion of the CAKE rewards from the CAKE Engine, plus the relevant %s from any other engines we add to the ecosystem, and use it to buy back & burn Mooncake. The remaining rewards will continue to compound.

The Oven will be Managed by a Community DAO

The Mooncake project is currently managed by a development team in a centralized manner. The team is responsible for managing the development, features, launches, code, marketing, community, and more.

We’re deeply committed to the decentralization and democratization that the blockchain represents, and we’re ready to turn the project in a different direction to bring the community’s voice to the forefront of Mooncake.

Oven V2 will be launched along with a DAO. The DAO will be responsible for managing the percent of rewards the Oven gets to buy back and burn MOON, the Engines, and set the direction for the Mooncake project.

Who can participate in the DAO’s voting?

Anyone can buy DAO governance tokens and participate in the DAO.

We’re figuring out the best governance token structure for the DAO, whether it’s by total Mooncake owned, or it’s an entirely different token.

We’d love to hear your thoughts on this in Telegram or Founder’s VC.

Where will the DAO voting take place?

The team is hard at work on an updated Mooncake.io site. The updated site will house a UI for viewing proposals and voting in the DAO.

When will the DAO be ready?

The DAO & DAO’s UI will launch along with the updated Oven/Engine contract. It is planned to be ready by the end of this year.

How will the DAO work & what can it do?

The DAO is the Mooncake Engine Control Room divided into 2 parts:

— Part 1 Engine Management

The DAO will be responsible for managing the actions of the Mooncake CAKE engine. Later, if the community chooses to add an engine from another DeFi protocol to the Oven, the DAO wil manage that, too.

Engine Actions Controlled by the DAO’s Voting

• Swap $MOON for $CAKE and Stake — Calling the oven function to sell $MOON balance for $CAKE and stake it in the CAKE syrup pool
• Move MOON to the DAO — Withdrawing MOON from the Oven into the DAO
• Withdrawing $CAKE from the CAKE syrup pool to the DAO
• Adjusting the ratio of cake rewards staked to cake used for buying back and burning $MOON
• Calling the Engine function to buy back & burn Mooncake
• Adjusting the percentage of $CAKE and $MOON the DAO can withdraw from the Engine

— Part 2 Community & Project Management

The DAO will manage the Mooncake project. This will include proposing & voting & remitting funds from the DAO to cover the following:

• Hiring, firing, and paying the community members who support the project, including community moderators and more
• Marketing initiatives
• Ongoing project management
• Any other project-related tasks that require funding

The Relationship between the DAO and the Core Team

The core development team founded the Mooncake Project and developed the current products, token & smart contracts the project uses.

We’re planning for the relationship between the Core Team & the DAO to be as follows:

• The Core team can participate in voting in the DAO, but the Core team & the DAO are separate entities
• The Core team will be responsible for owning their own governance tokens to vote in the DAO
• The Core Team will work in partnership with the DAO to improve & grow the Mooncake project for the long term
• The Core team is entitled to 10% of the ongoing CAKE Rewards

Core Change Proposal Flow

The DAO members who hold governance tokens will be able to propose core changes to the Mooncake project.

A core change is any modification to Mooncake that involves additional development work. This includes website changes, UI enhancements, smart contract features, new product launches, etc.

The Mooncake dev team will review the proposal and assign an associated cost, if applicable. Then, anyone holding governance tokens can vote on the proposal.

The Superpowered Oven DAO is Coming.

We’re excited about the upcoming changes to the Oven. Our team is working hard to roll them out by the end of the year.

Not only will it be able to generate revenue from multiple sources to buy back & burn Mooncake, we’re also returning massive value to the Mooncake holders by giving you direct access to governance.

It’s a truly breakthrough innovation; a decentralized, democratically-managed reflect token.

How will you contribute to the new Mooncake?