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Original link:https://jp.cointelegraph.com/

Bitcoin has not been a good first choice investment for most institutions over the past decade. High volatility and high risk prevent some fund managers who are interested in Bitcoin from participating in the market allocation of Bitcoin through internal risk control decisions.

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Involution in the encrypted world

On Coinmarketcap, there are 4,157 encrypted assets tracked by the platform. Most of the assets are no longer traded, and most of the assets have seen a significant increase in the release scale compared with when they were just launched. Continuous inflation and The unsustainable trust support has reduced the daily trading volume of assets to 0.

In order to attract more investors’ attention to assets, each project team is racking their brains to iteratively update products, but in any case, the essence of assets is the code, parameters, and market makers when issuing smart contracts The high-sell strategy has not changed.

"Investors are still a group of people with a weak market, and they have to pay for more market circulation." This is the direction that most teams are implementing.

In the encrypted world, people often have debates around a question, that is, "Is it valuable?" From Bitcoin, Ethereum, to some new tokens that have just come out recently, almost all investors have participated in different occasions. , will ask this question.

Usually, the best way to solve this kind of problem is that the team can continue to explain to people, its practicality and trust value, no matter whether it is real or short-term, it can more or less arouse people's attention. focus on. Because since ancient times, the evangelists of Bitcoin and Tesla have done this, and people will also miss out on high-value assets and hope to discover second opportunities.

After a long time, a big problem "involution" will appear in the entire encryption industry. The same product and functional design can be told as another story when it reaches another chain or scene. Over time, it is limited by the limited industry structure. Influence, stories will become more and more similar, and investors have heard similar stories, and will no longer spend a lot of money to consider participating.

Aggregators, governance, and reward pools, these terms that have emerged with DeFi, all indicate that short-term liquidity is locked and more long-term liquidity is released. In the end, it is inevitable that people will have a question: where does the money come from? How long can you stay.

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People need real deflation

At present, many projects on the market are carried out around inflation from the very beginning. The design of participation mechanisms such as private placement, public placement, and institutional release will make it difficult for the project to fall into a situation where it is difficult to turn into deflation in the secondary market. From the perspective of supply, the previous inflation caused by the release mechanism will still be greater than the subsequent deflation, and it is difficult to reverse.

The most obvious example is the DeFi wave that appeared in the summer of 2020. At that time, in order to attract LP funds for liquidity mining, many DeFi projects provided shares to well-respected institutions and KOLs. The early stage of listing on the exchange has attracted more attention from people, but at the same time, it has also brought fundamental problems to the subsequent inflation.

In July 2020, Yearn.Finance, a DeFi project that changed the development of the follow-up industry, was officially launched, and then the YFI token of the project gradually hit from more than 700 US dollars to 41,522 US dollars, allowing many YFI investors who entered the market later to experience It feels like holding Bitcoin back then. Even though the price of YFI has dropped a lot from the highest point, it still remains above $20,000.

The reason why it was supported by many investors is also related to the fact that Cronje, the founder of the Yearn.Finance project at the time, did not allocate YFI Token to himself, and gave up various financing, team allocation, and pre-mine. All YFI Tokens are eventually distributed to users on the usage agreement.

Therefore, many projects today try to copy the design of Yearn.Finance in exchange for investors’ attention, but in the end they have not succeeded in realizing it. For example, on December 29, 2020, 1inch, which had just completed the airdrop of the platform, was exposed by investors. The official suspected that it had issued airdrop tokens to its own address, with a scale of about 363,000. Prices, these assets have a value of approximately $1 million.

Perhaps what happened to 1inch is just the tip of the iceberg of many DeFi projects, because no one can know exactly how many tokens circulating in the 1inch market may be sold by official investment institutions and interest partners.

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Birth of Mimosa

If you do a project similar to Yearn.Finance, but the mechanism and distribution method have not changed, it may be called an imitation by investors, but if you do a project that is redesigned and iterated on a similar basis, it may It will have more novel points.

This is what Kenichi Watanabe and Sophia, the founders of Mimosa, want to do. They feel that this will not only gain people's recognition, but also make it easier for Mimosa to carry out more actions in the future, because it will not be subject to investors, early stage holdings, etc. The troubles of owners and related stakeholders.

At present, a small team of 12 people with the main members in Tokyo is planning this matter.

The establishment of Mimosa may really be related to the launch of Yearn.Finance. In the summer of 2019, the popularity of DeFi brought together a group of practitioners in traditional banks and brokerages. They would meet every weekend in an izakaya in Tokyo. Many places are drinking barley tea and chatting about the market.

The reason why this interest organization has the idea of ​​doing the Mimosa project is an experience of investing in YFI. Although most of the members of this association bought YFI at the position of 2,000 US dollars, due to the profit psychology, many members are investing in YFI. At the time of 5,000 US dollars, the YFI held was sold, and only the founders of the two associations left a little.

They feel that the holding of YFI not only brings them income, but also brings them a lot of inspiration, so they are more willing to continue to hold it, and even want to do something more interesting and long-term.

This is how Mimosa was originally born.

The same as Yearn.Finance, Mimosa does not have any financing, team allocation, pre-mining and other mechanisms, which guarantees the fairness in the early stage; the difference is that when Mimosa generates MIMO, it directly writes 5% in the smart contract The deflation on the chain is destroyed, which guarantees the implementation of deflation in the future.

At present, the total amount of MIMO is only 16 million, and it is estimated that after the completion of the early mining distribution, there will be less than 15 million total (each transfer will permanently destroy 5% of the transfer amount, and there is no whitelist), It also prevents the official release and the situation of large participants.

Recently, Beosin, an internationally renowned audit institution, audited Mimosa's smart contracts and confirmed that MIMO is transmitted on the Ethereum chain, and the tokens are destroyed by deducting the transfer fee. This means that Mimosa is about to carry out an important next step, which is "freed".

According to the description in the white paper, the initial circulation released by Mimosa is only 800,000 pieces. After deducting 5% of the on-chain destruction amount, it is estimated that only 740,000 pieces can be held by followers. According to an exchange that is arranging the listing of Mimosa According to internal documents, Mimosa's MIMO suggested guide price is only $1, which means that in the new year of 2021, among all new projects, the three lowest records of total market capitalization, circulation market capitalization, and circulation scale are about to be produced.

How much premium space the market will give Mimosa can only be seen on the day when MIMO is officially in circulation. After all, new projects in the encrypted world always like to issue with a large market value. Maybe Watanabe Kenichi also has his own ideas.