4.2 MU Governance Token

MU fulfills three essential functions within the Resource protocol:

  1. Staked MU carries a portion of the network’s risk, in return for staking rewards

  2. Staked MU grant their owner voting rights on network decisions as elaborated above.

  3. Unstaked MU may be used by members to pay network fees

Unstaked MU do not carry specific risks associated with particular credit lines, except the usual risks associated with the holding of assets of any kind.

The means and manner by which MU is staked and by which risk is transferred to MU stakers is elaborated on in the chapters above. In short, initial risks are assumed by Underwriters who stake MU to verify credit lines. These risks, and the associated staking rewards, can then be shared with the public via a delegated staking mechanism.

To understand how the ReSource network consumes and recirculates MU, refer to chapter 3.4.4 “MU Token Dynamics”.