Overview

MaxCap is the governance token of the Nuon v2 protocol and is distributed to NUON stakers on a Bitcoin-style emission curve. Maxcap holders need to stake their tokens in order to earn the excess yield of the system (in excess of Truflation APY paid to NUON holders).

MaxCap holders are incentivized to attract as much capital as the system can support, as they earn more if there are enough yields in the system, and, because they are entitled to the yield in excess of Truflation, they lose more if they allow too much NUON to be minted.

When staked, MaxCap earns the yield on deposited USDC in excess of the Truflation APY paid to NUON holders. These returns auto-compound in the vaults until the staking period is over; after that time, MaxCap token holders can withdraw their accumulated share of rewards. MaxCap also confers governance rights in the Nuon protocol (see Governance).