Midas Tech AG has decided to cancel its pre-sale and public sale of a security token and instead further explore aligning interests with the Melon ecosystem, by proposing a Token Application Event (TAE) to the Melon community. With this step we aim at increasing industry-wide synergies, strengthening the A$H and Melon communities, reducing the overall amount of different tokens, and ultimately becoming an integral part of the Melon ecosystem.

Drowning in tokens

One glance at coinmarketcap.com reveals a crucial question arising in the crypto space: who is actually going to use all these tokens, and for what? Many projects have designed a token utility which is unnecessarily duplicated across protocols and applications. Often, platforms require a token although the offered service or product can be easily provided without. Some of them even require several tokens with different functionalities. Obviously, this scenario creates friction between different projects, fosters inefficiencies and worst of all, raises barriers to entry. Would you use a platform if you need to acquire three different tokens to do so?

Melonomics — building a dedicated ecosystem for asset management

The Melonport team has realized the necessity of aligning interests, while simultaneously rethinking tokenomics in order to create long-term value. The new concept of Melonomics (Part 1) introduced this week, enables projects building on the Melon protocol to submit a proposal to the Melon community ie. Melon token holders with voting powers, to receive funding for their projects by minting or issuing MLN tokens. If the Melon community approves the proposal, the project can use the minted MLNs to realize its plans.

Projects that already have a token and may have raised funds in a token sale, shall be able to swap or merge their token with MLNs, by proposing a swap of token X for MLN to both token-holding communities. If approved, new MLNs get issued while token X is burned in a ratio that was agreeable to both communities. While one token is being inflated to accommodate another, the overall benefit of gaining a new team, community and developers, users, supporters and network effect, outweighs the negative impact of dilution, by far.

Generally, this approach creates a pool of projects and talent invested in building a strong, robust protocol with multiple use-cases. If projects receive MLN tokens, they automatically have an interest in improving and maintaining the protocol as well as encouraging others to build on Melon. This leads to even more powerful network effects and aligned incentives, strengthening the Melon ecosystem. Each application can integrate their platform-specific, individual functionality for MLN, which again creates more transaction volume for the token, thereby making it more liquid and stable over time.

A$H goes MLN

We have been critical in the past about means to an end token models which result in unnecessary utility. A$H strives to achieve usability and easy access. We have debated back and forth internally how to achieve usability in alignment with the Melon protocol functionality and the Melon ecosystem in an optimum way. In this spirit, the Melonomics proposal makes sense. Midas Tech AG can forego the issuance of another new token out there ie. maximize the app’s usability, while we contribute to a stronger network effect and directing more power to the protocol.

Next steps

We will spend the next few weeks preparing the first proposal to the Melon community. In order to maximize transparency Midas Tech AG will propose several minting rounds, each tied to certain milestones. The proposal will include the development plan, required funds, a concept of integrating MLN in A$H, timeline and clearly definable milestones in accordance to Melon minting events.

Please note: We want to thank those who showed interest in the (pre-) sale and who supported us. We have confidence that you will share our excitement around this decision in an attempt to bring true, long term benefits to A$H. All Beta users who participated in the Airdrop signup will receive a proportionate amount of MLN instead of MDS directly to their fund (equal to the same amount in CHF), once the Beta is online.

Stay tuned!