Recently, we mentioned some info about the xMRCH token, but didn’t give a lot of info about what and why. It’s time to shed more light on the new token, the future token model, and economic details to be sure that you’ll be extremely satisfied and interested. So, fasten your seatbelts — and let’s dive into the details.
Double token system purpose
Currently, there are a lot of projects with double tokens. In most cases, the purpose of this is to create additional demand for a project, provide new possibilities and reward the community as much as possible. Since we’re not planning to sell the xMRCH token to retail investors, our community will have the chance to farm and mine xMRCH tokens without additional investments
(in case you already have $MRCH tokens).
Since the MerchDAO launch, we have had only one token — $MRCH — and we planned to use this token in governance. Basically, $MRCH was planned as a voting right on our physical NFT DAO platform, but now we see that things have changed: rebranding, new business activities — and we need to implement something unique. So, we’re going to do that.
First of all, we’d like to say that both tokens — $MRCH and $xMRCH — are only utility tokens. These tokens don’t guarantee any passive income, or special voting rights in a company. MerchDAO is aiming to work like DAO and governance activities will be fully decentralised. Let’s dive into a description of each token and their purposes.
$MRCH token purpose and description
Let’s start with the $MRCH token. $MRCH was basically designed as governance rights, as well as discount to purchase physical goods in our e-commerce store. But there are few points where our team were stuck. Why would people vote if they should spend coins in an e-commerce store? And also, how would they spend coins in a store if they would like to participate in our DAO? That’s why we took the decision to remove governance utilities from the $MRCH token and add more gamification to our service.
From today, we’re planning to use $MRCH in such cases as:
- a farming coin;
- a tool to mine a $xMRCH token;
- discount coupons in our e-commerce store.
We’ll describe the purpose of $xMRCH in more detail below, but now we have to clarify some details. There are only two ways to receive $xMRCH tokens for $MRCH holders: via liquidity farming and via “mining” activities. The $MRCH token still has only a utility purpose, and the $MRCH token doesn’t provide any income or profit returns.
And the $MRCH token details are as follows:
- Total supply: 10.000.000 $MRCH
- Max supply: 9.000.000 $MRCH
- Circulating supply: ~5.000.000 $MRCH
Team tokens are locked for one year. You can check details here: team.finance/view-coin/0xBeD4AB0019ff361d83ddeB74883DAC8a70f5ea1e?name=MerchDAO&symbol=MRCH
Also, the team has already burned 10% of the total supply. Check out the announcement here:
In the next few days, we’ll update the circulating supply on CoinGecko and Coinmarketcap and the community will know the exact amount of tokens in the market.
$xMRCH token purpose and description
Basically, MerchDAO was a DAO NFT-based marketplace of physical merchandise. We were not planning to release one more token a few months ago but, as you can see, we want to divide utilities and let the community use our store as well as the DAO platform without any buy/sell operations.
The $xMRCH token is a governance token under MerchDAO AND MerchLabs. Yes, this token will provide rights to vote for some important decisions in the MerchLabs project too. It’s double value for the community and token holder.
As we mentioned before, there will only be two ways to receive the $xMRCH token for the community: via liquidity farming or single staking of $MRCH. You heard the word “mining” in our announcements and articles much of the time. Let us describe it. There won’t be any APY for staking $MRCH. We’ll have blocks, epoch periods and all users will receive a fixed amount of coins for each single period, divided between all participants.
Let’s have a look at the $xMRCH mining details:
Epoch period — 7 days.
Reward per epoch — 1000 $xMRCH.
Halving period — 17 epoch periods (approx. 119 days or ~ 4 months)
Total supply: 100 000 $xMRCH
And let’s walk through the example. Let’s imagine that we have 3 users, who staked their $MRCH in the mining pool. 1st user staked 500 $MRCH, 2nd — 300 $MRCH and 3rd — 200 $MRCH. As we know, the reward per epoch period is 1000 $xMRCH. That means that, after the first 7 days, these users will receive all these 1000 $xMRCH tokens: 1st user will receive 500 $xMRCH, 2nd — 300 $xMRCH and 3rd — 200 $xMRCH. But let’s imagine that we’ll have 500 users, who will stake. They’ll divide only
1000 $xMRCH per epoch. After each 17 epoch period, the epoch reward amount will be halved. Then after the next 17 periods, the epoch rewards will be halved too.
With this scheme, we’ll create a real decentralized ecosystem for the MerchDAO and MerchLabs project with $xMRCH tokens. A more detailed $xMRCH token economy will be released in the next few days, we’ll describe the purpose of rest tokens, vesting periods and other things.
The $xMRCH token will be traded on Uniswap! The MerchDAO team will provide liquidity for trading activities.
And note, the total supply of $xMRCH will be only 100 000 tokens.
Future plans for $MRCH and $xMRCH
We see MerchDAO and MerchLabs like a really good business which has a lot of awesome business cases. Before launching the $xMRCH token, we will promote project development as much as possible and will try to onboard top tier VCs, who will support us in the long term. Also, from September, we’ll be starting work on the universal NFT wallet for physical merchandise and hoping that we’ll be implementing this solution on Flow blockchain. Flow blockchain won’t affect current tokens.
We’d like to provide a lot of interesting info about our progress, development and plans, but everything will not happen at once. So, stay tuned, guys — subscribe to our official channels.