MECA

Introduction

MECA is an ERC-20 token appied the EIP-2535 Diamond Pattern, within the Coinmeca ecosystem. It serves as a utility token for various purposes within the ecosystem, including payments, deposits and withdrawals, collateralization, and governance.

MECA can be minted by anyone depositing liquidity into the Vault. In this sense, it can be seen as having characteristics similar to LP tokens. MECA also represents a stake in the profits generated from the liquidity deposited throughout the ecosystem.

Alternatively, you can stake MECA on Farm to seek additional profit opportunities through yield farming. This can be likened to receiving interest by holding bonds collateralized by the deposited liquidity. MECA has as many forms as the various utilities it possesses. This can be said to be a characteristic that only cryptocurrency can have.

The ultimate goal of MECA is to consolidate all core utilities within the ecosystem, thereby creating robust token value. While it may evolve to encompass more utilities in the future, currently, it can be best described as a "Yield-Bearing Token."

Information

MECA is an ERC-20 standard fungible token with 18 decimal places. The initial total supply of the token is 100,000,000, which does not represent its maximum supply. MECA is minted based on assets deposited in the Vault, allowing for infinite vault growth. Therefore, there is no limit to minting MECA tokens to facilitate the endless expansion of the vault's liquidity.

Type	Content
Ticker	MECA
Name	Coinmeca
Standard	ERC-20
Decimals	18
Initial Supply	30,000,000
Total Supply	100,000,000
Max Supply	Infinite

Furthermore, the actual earnings generated by the vault are deposited back into the vault and a portion is minted through farms, ensuring that only the actual earnings are supplied and circulated. This means that as the ecosystem grows, the token supply can increase accordingly, and if the ecosystem's growth is limitless, the token supply can also increase infinitely with the participation of external users.

This approach is implemented to remove constraints on ecosystem growth due to limitations on token supply, as the token is closely tied to the core logic of the ecosystem. However, if the value of MECA grows faster, the total supply may not exceed the initial value, as the value increases instead of the minting amount.

Therefore, if the ecosystem operates stably within the total supply limit, i.e., if the ecosystem is not growing but is maintained, the total supply can be maintained by repeating burning and minting within the initially set total supply limit.

Benefits

MECA token is designed to offer the following significant advantages:

Value Appreciation

MECA token partially embodies the nature of LP tokens. All earnings generated across the Coinmeca ecosystem are accumulated in the Vault. This can occur as the value of assets deposited in the Vault increases, and as fees generated from the operation of the Vault are collected back into it, the exchange rate of MECA gradually rises. As the ecosystem grows, participants naturally benefit more, fostering a common goal of mutual benefit among all MECA holders.

Profit Sharing

MECA tokens can generate additional income by staking them. A portion of the profits generated in the Vault is converted into MECA and distributed through the Farm. The more MECA tokens a user receives based on their contributions to the ecosystem, the higher their stake. Higher stakes grant more powerful staking power, creating an environment where more ecosystem participants actively contribute. Unlike traditional swaps where one would need to hold LP tokens for specific pool earnings, MECA tokens distribute earnings from the liquidity operation of the Vault across the entire exchange through the Farm, allowing users without advanced trading skills to benefit.

Utility

MECA's utilities can add more use cases for various purposes as the ecosystem expands.

For now

• Exchange

  MECA tokens can be exchanged for other currencies through deposits and withdrawals in the Vault. Thus, as the number of tokens listed on the Vault increases, MECA tokens gain stronger exchangeability.

• Staking

  MECA tokens can be used as deposited assets for yield farming in the Farm. By depositing liquidity in the Vault and staking the acquired tokens, users can benefit from earnings generated across the entire exchange.

• Payments

  MECA tokens can be used for the margin in futures trading positions in the Market.

For future

• Voting

  MECA tokens can be used for governance voting to determine the direction of the ecosystem.

• Privilege

  Holders may enjoy privileges exclusive to them on future launchpads.

Tokenomics

Circulating Flow

As the value of assets within the Vault fluctuates, the amount locked within the Vault also experiences corresponding increases and decreases as users deposit and withdraw assets. Consequently, when users withdraw assets through MECA, their MECA tokens are collected and sent to the Reserve Pool, In the name of incineration. This action effectively reduces the circulating supply of MECA tokens in the market.

For instance, during a market downturn, when the value of collateral assets in the Vault decreases, market participants anticipate a corresponding decline in the nominal value of MECA tokens. In response, users may sell their MECA tokens until a balance is reached where the holdings of assets in the Vault and the nominal value of MECA tokens stabilize. By this process, In the name of burn, the circulating quantity on the market is recovered and collected into the Reserve Pool. The MECA returned in this way is reused to be paid out as interest in the Farm, a staking pool.

The circulation of MECA tokens operates in a dynamic and continuous manner, distinct from the one-time release often seen in traditional token supply schedules. Instead, it involves a cyclical process of mint and reclamation, responding to market dynamics and profit generation. This ongoing cycle ensures that the circulating supply is continuously adjusted to maintain an appropriate amount of circulation in the market. This adjustment is influenced by the changing market conditions, allowing MECA to effectively respond to fluctuations in demand and maintain stability within its ecosystem.

Intrinsic Value

Unlike many tokens whose value is often derived solely from market sentiment and speculative trading, MECA is designed to derive intrinsic value from its fundamental utility. MECA tokens are minted and circulated exclusively based on contributions to the Vault, thereby establishing a fundamental intrinsic value backed by the cost of minting. This aspect can be likened to the notion of collateral, where the minting cost underpins the token's value. By assigning a certain value to the token and ensuring its exchangeability through transactions within the vault, MECA is designed to maintain a level of value.

However, MECA is not solely dependent on collateral such as stablecoins. Its demand-based minting and circulation, regulated by AMS, enable its value to increase steadily as demand for the token grows by the process of decreasing a new minting amount gradually. This mechanism encourages the ecosystem's active operation and growth by collecting profits from liquidity operations across the ecosystem back into the vault, thereby promoting an increase in exchange rates. This, in turn, signifies a rise in the value of MECA.

Furthermore, redistributed profits through Farms are based on real yields. A portion of the fees collected from each service, such as market transactions, contributes to supporting the value of MECA minted through Farms. For instance, if 1% of fees collected in the market is directed to the Vault, approximately 0.33% is minted back to users as MECA rewards, while the remaining 0.33% is redistributed to contributors through Farms. Although the 0.66% of MECA is circulated externally, the assets collected into the Vault, which correspond to the initial 1%, provide backing for these tokens. This ensures that the value of MECA is continuously backed by the earnings generated from the platform, contributing to its stability and potential for value appreciation.

In essence, by referencing the amount and value of the token collected from actual platform earnings and controlling the circulation of them based on the exchange rate of the token at the time, MECA's value is continually backed by the platform's profits. This ongoing reinforcement of MECA's value with various tokens ensures stability and creates a foundation for potential value appreciation, contributing to the overall growth and stability of the MECA ecosystem.

Initial Allocation

To be announced.