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