MENTO Token Transferability Update

The Mento Protocol Foundation is recommending a temporary delay in enabling MENTO token transferability. This recommendation reflects our shared commitment to ensuring the strongest possible foundation for long-term success of the Mento protocol.

While transaction volumes across the protocol have been encouraging, we believe there is more work to do together as a community before making MENTO transferable. We are focused on three key pillars:

1. Growing adoption
2. Strengthening protocol revenue
3. Expanding Mento’s presence across the broader ecosystem

Strengthening Protocol Revenue

Today, protocol revenues come primarily from Reserve yield and swap fees, with contributions varying across pool tiers. To set the stage for a sustainable and successful token launch, it is critical that we deepen liquidity, optimize fee structures, and ensure swap volumes remain robust.

A central piece of this work is implementing a Reserve yield program. Such a program must:

• Preserve the 1:1 peg of outstanding stablecoins
• Maintain high liquidity for on-demand redemptions
• Generate safe and sustainable yield to fund ongoing development

Expanding this yield program is a necessary step before transferability can be responsibly enabled.

Sustainable Funding & Ecosystem Growth

At the same time, we need to ensure sustainable funding for:

• Development and audits of Mento V3
• Ongoing operations of Mento Labs
• Marketing and adoption activities
• Strategic partnerships (e.g., MiniPay)
• Preparations and partnerships for the token launch itself

These are not delays, but investments into a healthier, more resilient ecosystem that will maximize long-term value for all Mento stakeholders.

Next Steps

The Foundation will continue to work transparently with the community as we track progress on these pillars. In the coming weeks, Mento Labs should put forward governance proposals on Reserve yield (as already discussed in the Forum) and sustainable funding. These will provide the community with the confidence to move forward with transferability of MENTO under the right conditions.