MIDAS economics: How will the Lock-in effect MIDAS

The launch of the MIDAS Lock-in has signalled a change of direction of MIDAS and will revolutionise strategies adopted by utility coins in the future.

Complimenting the adaptation to MIDAS coin economics we introduced during March 2019, the MIDAS Lock-in directly and indirectly contributes to the sustained and positive growth of MIDAS in the short, medium and long term. Through this article, we shall reveal how this is achieved and the results projected.


MIDAS: Offering innovative coin economics
The adaptation of the MIDAS coin economics has been well documented, and laid the necessary framework to be able to become the first coin operating masternode/PoS technologies that offered economics where organic demand, utility and buyback exceeded the overall emission (or inflation) of the coin.

Anyone wishing to read the MN.Investments articles introducing the changes: https://mn.investments/midas-announce-the-adaptation-of-midas-reward-structure-and-collateral

Based upon the strength of demand, utility and buyback this effectively guarantees prices strength and growth in the short, medium and long term. It does not avoid price fluctuations, but ensures a general upward trend.


How will the MIDAS Lock-in have impact on results?
The MIDAS Lock-in plays two pivotal roles in the progression of MIDAS. The combination of these produce results greater than those of the frequently adopted ‘payment utility’ offered by other utility coins.

Managing a masternode cryptocurrency is a constant tug-of-war. Whilst trying to consistently find new users or investors to provide support, coin inflation or lack of investor confidence often wins the battle, leading to a generalised downward price trend. For many cryptocurrencies, finding new investors is often the only way to support a price in the long term, but as these decline so does the price of that coin - it is a simple supply/demand model.

This is where the first role of the MIDAS Lock-in steps up…
We have become the first project to move away from the model of having to consistently find new investors. Instead, the Lock-in will allow Midas to bind company growth - measured in an increasing number of active users - to price support and growth of MIDAS.

For every investor who wishes to activate zero fees on their account, they are required to purchase and hold 150 MIDAS in the MIDAS Lock-in. Therefore as a direct influence of the Lock-in, MIDAS will consistently and predictably find a flow of new buyers as the adoption rate of the MIDAS Lock-in increases.

The MIDAS Lock-in still provides strong contributions to the burn-rate of MIDAS…
Since day 1, MIDAS was launched as a coin with industry leading utility with buybacks, and we have pioneered use of a utility coin is managed within an investment ecosystem.

Prior to the introduction of the MIDAS Lock-in utility came from i) service fees, ii) listing fees, and iii) dev fees, all of which have been collectively burned. As a result of the introduction of the MIDAS Lock-in, it will lead to the gradual phase-out of receiving MIDAS as a service fees, but shall be replaced by the burning of the collective rewards MIDAS held in the Lock-in generates.

MIDAS revenue generated for 2019

As has been documented in previous announcements and articles, MIDAS held in the Lock-in is not reward generating. Instead the rewards generated by the collective MIDAS locked in will be burned. It is expected that there will be fewer MIDAS burned from this in comparison to our previously adopted Service fees model. However, there are two key advantages in this move for Midas (the project) and MIDAS (the coin):

1) By decoupling one of the influencing factors on the burn rate from fiat, it allows consistent and predictable burn rate contributions.

Through the service fee model, the amount of fees paid and MIDAS burned was dependant on the price of MIDAS, since Midas.Investments took fees based on USD - the lower the price, the more MIDAS received as fees and burned. Whilst there is obvious advantages to this (greater demand as price decreases to offer stability) it is important not to have all burn rate contributors fixed to fiat/BTC. Through the decoupling from fiat, but instead coupling to reward economics, it allows for a consistent and predictable burn rate of MIDAS, which will prove vital to achieve sustainable and consistent growth that is projected.

2) The revolutionary MIDAS Lock-in model will allow Midas to aggressively grow the number of users to the platform.

As our service continues to grow, this provides Midas with far greater revenue potential; both directly from the active investors via optional services such as Midex, BTC-in BTC-out or Fline, but also indirectly - a larger active user base provides Midas with greater influence to generate revenue indirectly. In turn, this will provide an increasing value of buy pressure from the buy-back and burn scheme adopted by Midas, more than offsetting the negative balance expected between the burn rate of the service fee model and Lock-in model.


Breakdown of emissions vs demand, utility and buyback
MIDAS is winning this war! Through the careful calculation of emissions/inflation against projected demand, utility and buyback, we are able to build considered projections that we are able to achieve via the growth as a company.

MIDAS Surplus/Deficit progression 2019

Total emission - The total number of new MIDAS generated that month.

MIDAS organic demand - Net buyers and holders of MIDAS for the MIDAS Lock-in.
MIDAS utility - Calculated receipts of MIDAS as a utility coin (first table).
MIDAS buyback - 25% of the BTC revenue generated is used to buyback MIDAS based upon projected price of MIDAS.
Surplus/Deficit - Using a calculation of {demand, utility and buyback} - {emissions}, it is used to ascertain the control or influence on the MIDAS price. Where there is a deficit (a negative figure) this will generate an overall downward trend. When in surplus (positive figure), this shall reflect positively on the trend.

We do not include calculations of investor purchases and sales for two reasons; i) we expect this to remain neutral at the very least - there will be equal number of investors who buy in comparison to who sell, and ii) this figure cannot be calculated nor predicted.


The present and the future: Where is the price of MIDAS heading?
By creating positive coin economics, MIDAS offers the opportunity for a gradual and sustainable upwards price trend. With a mix of BTC/fiat-coupled and reward-coupled influences on the MIDAS burn rate, complimented by the projected growth of Midas as a company/project, it allows for for a steady, sustainable and calculated growth rate of MIDAS.

MIDAS opening price - The projected (if in the future) or actual (if in the past) opening price of MIDAS on the 1st of the month.
MIDAS closing price - The projected or actual closing price of MIDAS on the 30th/31st of the month. The growth or decline of the price is carefully based upon the strength of the Surplus/Deficit.

MIDAS masternode value - The value of the MIDAS masternode in BTC based upon projected price.

NOTE: The 'closing price' for April is the current price through exchange.

The prices shown are to be treated as a moving average. Price fluctuations are still to be expected, however the growth in the MA is based upon the strength of the calculated surplus/deficit.

Based upon our projections - which have been calculated up to December 2020 - between 950,688 and 1,027,915 of the 1,975,562 MIDAS generated will be burned. During the latter half of 2020, the price of MIDAS experienced a ‘pinch point’. At this stage, the price of MIDAS grows with greater aggression, thus decreasing the influence of the buyback. The ‘pinch point’ is where there is a requirement for a certain circulating supply to support the network and utility of the Midas platforms, and our projections successfully predict this.


Throughout this week, we will be publishing a series of articles addressing the Lock-in, financials, economics and the benefits. Right now the schedule is:

Tuesday 9th April - Midas launch zero fee platform
Wednesday 10th April - The benefits of the MIDAS Lock-in
Thursday 11th April - MIDAS economics: How will the Lock-in effect MIDAS
Saturday 13th April - The financial outlook of Midas: How can we afford this?