Apart from a really great technological solution - the lightest blockchain using zk-SNARKs - Mina Protocol has well-designed tokenomics as an average legit new blockchain but with some concerns from my perspective.
To begin with, some raw facts:
- $MINA token is the native currency required to participate in block production and purchasing of SNARK proofs (no questions to utility)
- $MINA is a currency with no supply cap(inflationary)
- Initial distribution of 1 billion $MINA tokens. (tokenomics diagram on 1st pic.)
What is good:
- Backers are fully unlocked right now so it`s fine to assume that this unlock is already "in price" (2nd pic.)
- Mina Foundation is trying to reduce the inflation rate(different proposals such as removal of supercharged rewards)
- Only 30% of the remaining tokens are locked currently(3rd pic.)
Concerns:
- Huge % for different "core contributors"/"foundation"/"team"/"backers". We know what market we play and unfortunately, that fact doesnt increase any credibility. Dont want to play the game of guessing when they decide to use a new market move as an exit liquidity
- Linear unlocks till 2025 which are not good for sustainability during these uncertain/bearish conditions.
While I would be happy to change this tokenomics review and give 4-5stars as I believe in ZK technology and what the team is building, Mina is currently dependent on the market condition as well as many other experimental blockchains. By the way, as we are currently entering a Zero-Knowledge narrative phase, this could potentially benefit Mina in terms of improving its market position.
Always open to discussing debatable statements and getting new insights. Show Less
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