> For the complete documentation index, see [llms.txt](https://cicada-finance.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cicada-finance.gitbook.io/docs/assets/mner-club.md). # MNER CLUB This section describes **ComputeFi assets** within CICADA Finance, represented by **MNER CLUB**, a specialized real-world asset (RWA) management platform focused on Bitcoin mining and compute-based yield generation. Unlike purely financial RWAs, ComputeFi assets are backed by **productive digital infrastructure**, transforming physical computing resources into onchain, yield-generating assets with strong composability characteristics. #### MNER CLUB Overview MNER CLUB is a specialized RWA management platform that integrates real-world assets with blockchain technology to issue, purchase, manage, and distribute yield-bearing RWA assets. The platform addresses structural limitations commonly observed in RWA and DeFi models that rely primarily on token subsidies or short-term incentives. Instead, MNER CLUB introduces: * **Positive externalities** derived from productive infrastructure * **Interoperable asset models** designed for long-term sustainability * **Real yield** sourced from Bitcoin mining operations MNER CLUB originated from Bitcoin mining infrastructure and progressively transitioned into a fully onchain representation of mining-based yield, enabling broader participation in compute-driven cash flows within the blockchain ecosystem. #### ComputeFi Asset Scope and Roadmap MNER CLUB’s ComputeFi framework is designed to expand beyond a single asset type, with future asset categories including: * Mining Facility RWA * Bond RWA * Venture Capital RWA * AI GPU RWA This roadmap reflects a broader strategy to standardize compute and infrastructure-based cash flows into composable onchain assets under CICADA Finance’s asset management framework. #### Mining Equity Token Structure (ltMNER and rtMNER) Bitcoin mining assets within MNER CLUB are represented through a dual-token structure: * **ltMNER** — liquidity-oriented token * **rtMNER** — yield-generating rebase token This structure mirrors the broader LT–RT paradigm used across CICADA Finance while being specifically adapted for mining-based cash flows. **ltMNER — Liquidity Representation** ltMNER is a standard ERC20 token representing the transactional state of the mining asset.Key characteristics include: * Freely transferable and tradable on supported markets * Serves as the liquidity-facing representation of the mining RWA * Acts as the entry and exit interface for secondary market liquidity Mining income generated by the underlying RWA mining pool is injected into the official liquidity pool on a daily basis to purchase ltMNER, directly supporting market liquidity. **rtMNER — Yield-Generating Representation** rtMNER represents the yield-bearing form of ltMNER.Key characteristics include: * Holders accrue Bitcoin mining yield automatically * Yield is distributed through daily rebasing * No locking, staking, or manual claiming is required The rebase and profit distribution mechanism between ltMNER and rtMNER enables a high degree of composability and sustainability, allowing mining yield to be reflected directly in rtMNER balances. #### Conversion Mechanism Through a minting and conversion protocol, users may swap between ltMNER and rtMNER on a **1:1 basis at any time**. * Converting ltMNER → rtMNER locks ltMNER into the conversion contract * Converting rtMNER → ltMNER restores liquidity exposure This bidirectional conversion allows users to dynamically choose between liquidity and yield compounding. #### Liquidity Design An official ltMNER/BTCB liquidity pool is provided on BNB Chain, with initial liquidity injected by the team.As part of the self-sustaining mechanism: * Mining revenue is continuously injected into the ltMNER/BTCB pool * Purchased ltMNER is removed from circulation via conversion into rtMNER * This mechanism enables mining yield to be fully redeemable through AMM liquidity Liquidity depth is expected to increase as additional mining nodes are deployed and brought onchain. #### REBASE Profit Distribution Mechanism Net Bitcoin mining income is used to purchase ltMNER from the official liquidity pool on a daily basis.The process follows a fully automated flow: * Mining revenue is collected offchain * ltMNER is purchased onchain via the official pool * Purchased ltMNER is locked into the conversion contract * An equivalent amount of rtMNER is minted * rtMNER is rebased and distributed proportionally to holders This design ensures: * Transparent onchain yield distribution * Direct linkage between real mining income and token supply growth * Removal of discretionary or manual intervention #### Supply and Circulation **ltMNER** * Initial circulating supply is based on a 1:1 snapshot of legacy RMNER and R2MNER holdings * Additional issuance corresponds to official liquidity pool parameters * Future node sales result in proportional ltMNER issuance upon completion **rtMNER** * Initial supply starts at zero * rtMNER is minted exclusively via ltMNER conversion * Supply increases automatically through daily rebase driven by mining revenue #### Revenue Enhancement and Sustainability To ensure long-term viability, MNER CLUB incorporates sustainability mechanisms: * A portion of high-yield-period income is retained to offset hardware depreciation * Strategic timing of mining machine relocation and equipment upgrades * Optimization of electricity cost exposure * Acquisition of compute power under favorable market conditions These measures aim to preserve hash rate efficiency while maintaining economic sustainability. #### Hash Rate Maintenance and Risk Mitigation A portion of retained yield reserves is allocated toward: * Hardware upgrades * Hash rate maintenance * Power efficiency improvements Potential risks include: * Rapid increases in global hash rate competition * Rising costs of advanced mining hardware * Supply chain disruptions * Technological constraints in chip manufacturing These risks are continuously monitored as part of operational management. #### Hedging Strategy To protect long-term community interests: * Hedging operations may be conducted for electricity costs and mining income * Hedging aims to lock in profitability during favorable market conditions * This reduces exposure to energy price volatility and income fluctuations #### Composability and DeFi Integration rtMNER and related rebase assets are designed for broad composability:Applicable scenarios include: * Underlying interest-bearing assets for DeFi protocols (e.g., SOFA) * Yield supplements for other sustainable protocols * Foundations for structured products based on future cash flows * Loan agreements collateralized by future mining income The rebase-based R Token mechanism enhances liquidity and interoperability, enabling use in lending, staking, and yield composition across the DeFi ecosystem. #### Security and Transparency Security principles applied to MNER CLUB include: * All contracts audited by independent third-party firms * Full transparency of contract addresses * Industry-standard multisig mechanisms for asset control * Public accountability of the underlying RWA management team #### Conversion Fee When converting **rtMNER** into **ltMNER**, a protocol fee is applied under the following rules: **1. Fee Rate**\ A fee of **0.3% (3‰)** is charged based on the **total asset value being converted**. **2. Fee Denomination**\ The fee is collected in **ltMNER**. **3. Fee Destination**\ All collected fees are transferred to the **CICADA Finance multisig wallet**, and are recorded as **protocol revenue**. **4. Execution**\ The conversion process is **instant**, with the fee deducted at the time of execution. For converting **ltMNER** to **rtMNER**, there is no fee currently and the conversion process is also **instant**.