The Mirror Token (MIR) is Mirror Protocol’s governance token. Currently, it must be staked to vote on active polls and is required as a deposit for making new governance polls. In future iterations of Mirror, it will serve further purposes for the protocol that increase its utility and value.

Users that stake MIR tokens also earn MIR rewards generated from withdrawing collateral from CDP positions within the protocol.

MIR is also used to incentivize users to farm yields by staking LP tokens which were minted by providing liquidity for MIR and mAssets. Yield is paid to the users from MIRs that are newly minted through annual inflation, which gradually increases the total supply of MIR until the end of 4th year.

You can stake MIR here.

Do Kwon, Co-Founder, and CEO of Terraform Labs (TFL), the group behind Terra.

For more information on the Terraform Labs team see LinkedIn.

MIR Token stakers receive MIR token rewards every block, which are generated from protocol fees from CDP withdrawals. The protocol fees are collected from CDP collateral and are sold for TerraUSD to buy MIR through Terraswap. The MIR tokens are then distributed as rewards to MIR stakers in proportion to the percentage of total stake. This process balances the generation of new MIR by creating buying pressure.

The effective staking rate depends on Captured CDP Closure Fees, and Total Staked MIR. You can estimate returns for individual scenarios in the Mirror Staking Calculator.

MIR Staking Returns are automatically compounded.

Yes, there is smart contract risk and the risk of impermanent loss when depositing liquidity into LPs.

Mirror Protocol allows the creation of fungible assets, “synthetics”, that track the price of real world assets. Mirror synthetics are intended to be used as key building blocks in smart contracts, and to bring the world’s assets to the blockchain.

MIR is the governance token of Mirror Protocol, a synthetic assets protocol built by Terraform Labs (TFL) on the Terra blockchain.

Mirror Protocol is decentralized from day 1, with the on-chain treasury and code changes governed by holders of the MIR token. TFL has no intention of keeping or selling MIR tokens, and there are no admin keys or special access privileges granted. The intent for this is to be a completely decentralized, community-driven project.