Monetha’s token model/ICO conditions announcement
Usually, Monetha releases blogs in first person, due to the fact that this blog is more official and formal, we’ve decided to address it in an old fashioned way.
You might be aware that in the past few weeks, there has been quite a few talks about various profit-sharing ICOs being considered as a security. One of the biggest problems with being treated as a security, is the fact that you can’t get listed on any exchanges, because they are not registered with the local government. To avoid this we consulted with our lawyers and advisors, and decided to change the structure of the way our token will be used.
Here at Monetha, we are focused on the long term future for both the company and the investors, therefore we think that this token model will be more beneficial to the whole ecosystem.
1/3 of Monetha’s revenue will be put in the “Voucher Smart Contract” to our token holders with an ability to claim for a voucher that would be proportional to the amount of MTH tokens that they hold. Token holders will receive a voucher in MTH (Monetha’s currency) to use it as a discount/gift card when shopping with Monetha’s merchants.
Here’s how it works:
*Let’s say we have a 1000 investors as MTH holders, holding 1 MTH each. That mean — all token holders equally hold 0.1% of the total token supply.
*Let’s say Monetha’s merchants sold 100 000 ETH worth of goods and services in one month and let’s say that 1ETH = 1MTH. Because Monetha takes 1.5% transaction fee from merchants, Monetha will have 1500 ETH of revenue collected.
*For this scenario, a 1/3 of Monetha’s revenue means 1/3 of 1500 ETH = 500 ETH. Therefore, we will put 500 MTH in the “Voucher Smart Contract”.
That means that 500 MTH is available to use as a voucher, for MTH holders in Monetha’s ecosystem. All of the 1000 MTH holders will equally have the ability to use 500 MTH as a voucher/gift card when shopping with Monetha’s merchants. In this case, one token holder will be able to spend up to 0.1% of 500 MTH (=0.5 MTH each)
This voucher will be redeemable if you transfer your MTH tokens to the smart contract address on the 1st day of every month. Then, within the 24 hour window, your MTH tokens will be returned to your wallet, with the ability to redeem the voucher with Monetha’s app.
You will be able to accumulate your voucher each month and spend the amount you collected over the 6 month period in the Monetha’s ecosystem. Each month’s collected MTH will be viable to be spent for the upcoming 6 months. Unclaimed/unused tokens from vouchers will be put in the pool for the next month.
These changes are represented in our whitepaper (page 3 & 37)
Our goal is to raise the demand/price of the token in the aftermarket, thus even if we wouldn’t reach our hard cap, it’s still possible to do that with a few strategies. These strategies include very important conditions for our ICO:
1. Token sale lasts for 31 days if Monetha doesn’t reach it’s soft cap/hard cap.
2. Token sale lasts until Monetha reaches the hard cap.
3. Token sale lasts until Monetha reaches the soft cap and then there is a 120 hour countdown, or until the hard cap is reached.
With the last scenario, even if we don’t reach the hard cap, we still expect a demand of the MTH token to rise in the future markets. This would be caused by the fact that any unsold tokens will be burnt, and not everyone may have a chance to participate in the 120 hour window.