Moony uses a distribution model called Proof of Capital (PoC), implemented entirely through the immutable Moony Reserve. Under this model, MNY enters circulation exclusively in exchange for verifiable onchain capital. There are no private allocations, discretionary issuance, or off-chain mechanisms.
The core benefit of Proof of Capital is that deposited capital remains onchain as guaranteed redemption liquidity. Every unit of MNY in circulation corresponds to capital held in the Reserve, ensuring that participants can always redeem at price levels determined by the pricing curve. This creates a persistent, verifiable liquidity foundation that grows with the network.
How It Works
Deposit USDF into the Moony Reserve to unlock MNY. The amount received is determined by the current position on the pricing curve. As more MNY enters circulation, the price increases along the curve.
Return MNY to the Reserve to redeem USDF at the current curve price, with a 1% fee applied. Because all deposited capital remains in the Reserve, redemption liquidity is always available.
Both operations execute atomically onchain, requiring no intermediaries, approvals, or custodial trust. The Reserve functions as a two-way exchange governed entirely by code.
Capital-Based Mining
Proof of Capital offers an alternative to Proof-of-Work (PoW) distribution. Instead of specialized hardware and energy-intensive computation, PoC allows anyone to unlock MNY by depositing capital directly into the Reserve. There are no equipment requirements, geographic advantages, or industrial-scale barriers to entry.
Under this model, mining is constructive rather than extractive. Each deposit unlocks MNY while simultaneously adding redeemable liquidity to the system. Participation strengthens the monetary foundation rather than externalizing costs, establishing a sustainable distribution model aligned with Moony’s role as open monetary infrastructure.
Capital remains onchain as protocol liquidity. Participation strengthens shared infrastructure rather than extracting value from it.
Replaces energy-intensive computation with verifiable capital deposits, aligning with Solana’s low-carbon infrastructure.
Fee Model
Acquiring MNY directly from the Moony Reserve carries no fee, enabling open and cost-efficient entry into the network. Redemptions, in which MNY is returned to the Moony Reserve in exchange for USDF, incur a 1% fee.
The redemption fee helps mitigate front-running and sandwich attacks, a class of exploits in which automated bots extract value from predictable onchain price movements. By introducing modest economic friction on redemptions, the fee reduces the viability of rapid in-and-out strategies along the pricing curve and helps preserve fair execution for participants interacting directly with the Moony Reserve.
Fee proceeds are directed to Flipcash Inc., the open-source infrastructure provider responsible for developing and maintaining the Moony Reserve architecture. This supports ongoing maintenance and development of the underlying tooling without introducing protocol-level rent extraction.
Reserve Asset: USDF
USDF is a dollar-denominated stablecoin that serves as the Moony Reserve’s unit of account. Issued by Flipcash Inc. as a Coinbase Custom Stablecoin, each USDF is fully backed 1:1 by U.S. dollar-denominated collateral held in segregated Coinbase custody.
Within the Moony protocol, USDF functions as neutral reserve capital. Deposits are recorded onchain as protocol liquidity, supporting redemptions and anchoring circulating MNY in verifiable value.
While Flipcash and Coinbase manage USDF issuance and custody, neither controls the Moony protocol. All pricing, distribution, and redemption behavior is governed solely by immutable onchain logic.