What is meant by the term Melon Coin?
Melon Coin’s open source protocol enables decentralized digital asset management on the Ethereum Blockchain. Anyone can set up, manage and invest in digital assets. The performance of the funds is easily demonstrated and tested. You can invest in other portfolios or others can invest in your portfolio.
The core software supports multi-token commerce through a single interface, while add-on modules open features such as price feeds, risk calculations, and KYC compliance.
In traditional finance, hedge funds intelligently manage assets on behalf of others. However, the young crypto-security industry lacks the technological infrastructure to keep its services auditable, secure and as smooth as possible. To solve this, they have created the Melon Coin protocol.
Benefits for hedge funds
The migration of hedge funds into a blockchain brings many benefits to the hedge fund industry itself. This essentially includes lowering the entry threshold for hedge fund management:
- More transparency of fund performance that would help identify bad performers
- Reduction of overhead costs (for audit, booking, reconciliation, billing)
- Lower initial capital costs support smaller funds, which in turn can forecast higher returns
- A leaner and more diverse hedge fund industry could allow smaller investors to participate
This could help a fund management industry uncover existing crypto assets and support existing traders who convert traditional assets into blockchain tokens. The protocol will also be useful for the management of own resources.
A live working version running on Ethereum was launched in late 2017. The Melon protocol consists of core software that provides basic tools for portfolio managers and a set of modules that provide advanced features such as price feeds and volatility calculation tools.
Token Inflation will compensate the developers for creating these modules, which are divided into five difficulty categories. Each category will be eligible for different levels of inflation, although the exact rate of inflation has not been established.
How is the token applied?
The Melon Coin Tokens (MLN) are used to pay for the platform fee. Every trade requires a small amount of Melon Coin tokens, similar to a trade tax. High-frequency trading would consume a large number of tokens, while low-frequency trading would consume a smaller amount.
This tax will flow into one or more intelligent contracts. Stakeholders who will participate in future governance planning can vote on how they should be spent.
The tokens will initially exist on the Ethereum Blockchain. When Melon starts trading all Ethereum-based tokens will be supported. If the multi-level platforms such as Cosmos and Polkadot are completed, this could change. One of Melon’s ambitions is to support both public and permissioned blockchains; this may require platform migration.
What are the conditions for Melon Coin token sales?
A maximum of 1.25 million MLN tokens will be created to support the first crowdsale and a future one to fund additional work phases. 500,000 tokens will be available during the first crowdsale. 150,000 tokens will be blocked or non-tradable for planned founders, consultants, and business partners for two years until Melon is fully operational and fully programmed.
100,000 tradable tokens will be created for the Melonport company. 500,000 will be reserved for a future crowdsale.
Note: The Melon protocol creates additional tokens after being started by inflation. This first division pattern only reflects the MLN distribution at startup and will change if more tokens are created, of which 100% will go to module developers. The inflation plan was not defined.
Token value of the Melon Coin
The price was set at 2.2 MLN/ETH, which set a cap of 227000 ETH. This equates to about 245 million US dollars at an ETH price of 1080 US dollars.
The sale is not open to the US citizens. Crowdsale participants must digitally sign a statement that they are not US citizens. The MLN token will be tradable four weeks after the sale. Interested US participants could buy them on the secondary market.
What is the project status?
Melonport has developed the core software, a first set of modules and a simple, easy-to-use protocol portal. It’s live on the Ethereum Testnet. Melon Coin has confirmed several beta testing partnerships including CoinFund, Token Market, Cryptodex and more.
In 2017, the core software was refined, more modules built, partnerships closed and several audits carried out. They intend to launch very soon. In February 2018, after launching the live version, the team will focus on the governance model and multi-chain connectivity. The current plan is for the growth fund to finance these two challenges and tasks with MLN Transaction Tax Solutions.
Who is behind the project?
Melonport is the company that has developed Melon Coin. It currently consists of two co-founders and several consultants.
Reto Trinkler is the developer behind Melon and the CTO of Melonport. He studied mathematics at ETH Zurich – a prestigious technical university in Switzerland – and began developing smart contracts on Ethereum in 2015. He helped develop software for blockchain consulting firm Brainbot Technologies and developed a trading algorithm for sports betting.
Mona El Isa is the CEO of Melonport. A former Goldman Sachs trader, she worked in 2011 in the Geneva-based macro fund Jabre Capital and launched a hedge fund in Geneva before moving to the blockchain industry.
The consultants include the well-known blockchain developer Dr Ing. Gavin Wood, the Swiss entrepreneur Dr Andreas Glarner and Hong Kong-based venture capitalist Jehan Chu.