Weekly Token Spotlight: MIN
MIN token is the utility and governance token of Minswap, a Decentralized Exchange (DEX) on the Cardano blockchain.
MIN token is the utility and governance token of Minswap, a Decentralized Exchange (DEX) on the Cardano blockchain. MIN was launched in March of 2022 after a successful Liquidity Bootstrapping Event, in which the Cardano community helped determine the launch price of MIN by depositing ADA and eventually receiving liquidity tokens after the LBE event concluded. MIN powers the Minswap ecosystem. In this article, we’ll delve into the fundamental aspects of the token, from tokenomics to its various utility functions.
MIN Tokenomics & Distribution
MIN Distribution Pro page on TapTools
MIN has a total supply of 5 billion tokens, currently, only 976 million of these are in circulation, amounting to 19.5% of the token’s total supply. This gives the token market cap of $16,075,862, and a fully diluted market cap of
$82,343,696, placing it at #8 in the top 50 on TapTools.
70% of MINs supply is intended to be distributed as yield farming rewards, while 10% is earmarked for project development, and another 10% is allocated to the Minswap team. The remaining 10% of the supply has 6% allocated to the DAO treasury, 1.5% for partnerships, and 2.5% of the token was distributed via the FISO Airdrop.
24.49K wallets are holding MIN, with a decrease of 4.98% holders in the last 30 days. This may be due to the recent launch of MIN staking. MIN has an average holder balance is 146.82 MIN equivalent to 9.83 ADA. The average holder age for the token is 409.35 days, highlighting the strong community that has been supporting Minswap since its launch.
MIN Staking Pro page on TapTools
Currently, 2030 addresses are staking 207.34M tokens equivalent to 21.24% of the circulating supply staked in the MIN staking that was released this month and has proven to be quite popular.
MIN Staking Pro page on TapTools
The top 5 addresses staking have deposited a combined 67,467,689 MIN tokens, accounting for 32.5% of all tokens staked. These addresses have been staking for a combined 8.6 days as MIN staking has only recently launched.
Liquidity
MIN Liquidity Pro page on TapTools
MIN has 27.15 million ADA in liquidity across 6 Decentralized Exchanges on Cardano. Unsurprisingly, 99.42% of the liquidity is on the Minswap DEX, with VyFinance coming in second at 0.52%, and SundaeSwap coming in third with 0.04% of MIN liquidity. Prior to the launch of the Minswap DEX, the majority of liquidity for the token was on SundaeSwap.
Utility
MIN powers the Minswap DEX and ecosystem. We’ll now delve into the various utility the token offers its holders.
Governance
The Decentralized DAO decides the future of the protocol by voting on parameter changes. The voting weight is determined by the number of MIN tokens held. In this phase of Minswap Governance, the community actively participates in shaping the protocol’s future. The most recent vote on August 2nd, 2023, yielded an impressive 98.77% approval for the registration of LP ADA within the Minswap DEX, enabling LP ADA holders to engage in Catalyst voting. Major protocol changes are collectively decided by the community, exemplifying the decentralized nature of Minswap Governance. Meanwhile, the core team retains authority over operational adjustments, farm rebalances, and the onboarding of new farms
Batcher Fee Discounts
The standard batcher fee on the Minswap DEX is 2.00 ADA. Users of the Decentralized Exchange who hold a specific amount of MIN tokens or MIN/ADA LP tokens will receive a reduction in the batcher fees charged on each transaction. The minimum discount one can receive is 0.02 Ada per swap for holding 2000 MIN or 200,000,000 LP tokens, while the maximum discount is 0.50 ADA for holding 50,000 MIN or 5,000,000,000 LP tokens
Staking
This month Minswap has released the new MIN staking platform. MIN holders will be able to soft-lock their tokens and earn a yield from platform fees generated on the Minswap DEX. Staking your MIN for 1 month will earn an unboosted base yield of 1.09% ADA APR, staking for 3 months will earn a 3x boosted APR, 6 months will earn a 6x boosted APR, and holders taking for 9 months will earn a whopping 9x boosted APR yield on their staked MIN.
Conclusion
MIN token, as the utility and governance token of Minswap, plays a pivotal role in this Cardano-based decentralized exchange. With 70% of the supply allocated for yield farming rewards and recent popularity in MIN staking, it remains integral to the Minswap ecosystem. As the leading DEX on Cardano, Minswap’s future evolution and the role of MIN token hold great significance.
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