With the deepening of the bull market, investors' demand for high-quality new projects is increasing day by day.

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Note: Polkastarter IDO project secondary market growth chart, the picture comes from "Coin98Analytics".

Today (February 23), Polkastarter is about to usher in a new round of asset issuance-Public Mint will conduct an IDO based on this platform, planning to release 2.5 million MINT tokens, and plans to raise $250,000.

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Blockchain network based on fiat currency

The outbreak of DeFi has built a prosperous on-chain ecology for the blockchain world, and the total market value of cryptocurrencies has also recently exceeded the trillion-dollar mark for the first time. However, compared with the traditional off-chain business world, today’s encryption market is still very small. If the established blockchain ecology is compared to an archipelago, then the traditional business world is a vast continent. After more than ten years of development, more and more traditional institutions have realized the huge energy contained in blockchain technology, and the transfer of value from the mainland to the archipelago is forming a trend.

The protagonist of this article, Public Mint, believes that there must be a lot of room for imagination under this trend.

Due to the completely different basic systems, the current intercommunication between the on-chain and off-chain worlds is not smooth, and the uncertainty brought about by volatility has caused many traditional companies to hesitate to use cryptocurrencies. Stablecoin solutions alleviate this problem to a certain extent, but Public Mint believes that stablecoins are not designed to serve off-chain commerce, so most stablecoins cannot fully fill the gap between the cryptocurrency and fiat worlds. chasm.

Public Mint's solution is,image description

Note: The Public Mint network has been online for nearly half a year and has successfully produced more than 7 million blocks.

In terms of specific implementation, Public Mint maps fiat currency 1:1 to the chain, endows fiat currency with programmability, and provides a complete blockchain API and web components. Users can build applications that support fiat currency payment based on this network . Since Public Mint is compatible with Ethereum, Ethereum-based Dapps can be migrated to the Public Mint chain to build their fiat currency replicas without major code adjustments. Developers can also use the Solidity language to freely build new intelligence contract application.

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Fund entry and exit and compliance issues

As a public chain, Public Mint is completely open to everyone. To use this network, you only need to create a Public Mint address. Users can create addresses through the wallet terminal of Public Mint. As mentioned above, Public Mint is compatible with Ethereum, so any future Ethereum-compatible wallets will all be available on the Public Mint network.

The most critical link in the Public Mint business process is the on-chain and off-chain of legal currency assets. at present,Public Mint has reached cooperation with more than 200 banking institutions. These banking institutions will cooperate with Public Mint to complete the on-chain and off-chain of funds. FDIC) fully insured.

In order to show the process more intuitively, let's try to simulate a complete fund on-chain and off-chain operation.

• If a user wants to recharge funds, he first needs to complete the KYC certification (only required when the funds are in and out, and simple on-chain operations do not require KYC), and then transfer the fiat currency funds to Public Mint's partner bank according to the operation guidelines, and wait for the bank to confirm the funds After entering the account, an instruction will be sent to Public Mint immediately, and the corresponding anchor token will be generated in the user's designated address. Since various banking institutions have different confirmation processes for different deposit methods (ACH, credit card, wire transfer, etc.), it will take a certain amount of time from transfer to token generation, as shown in the figure below:

  

• After the funds are on the chain, users can use the anchor tokens on the chain to transfer freely or use various applications on the Public Mint chain.

• When the user applies for cash withdrawal, the instruction will be sent to the partner bank of Public Mint, and then the funds will be transferred to the bank account specified by the user, and the corresponding anchor currency balance in the address on the chain will also be destroyed. Similarly, it will take a certain amount of time from the application for withdrawal to the entry of funds into the account. The specific time is shown in the figure below:

Since Public Mint's business will inevitably involve a large number of fund transfers, compliance issues will be the top priority of the project. According to the official information, Public Mint is registered in Delaware, USA, and has registered with the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury as a BSA Money Services Business (BSA Money Services Business), which is regulated by the department constraint.

In order to meet regulatory requirements, Public Mint has adopted very strict standards when selecting cooperative banks. Cooperative banks must be chartered trust companies registered in each state and must be fully audited by a qualified custodian of the US Securities and Exchange Commission (SEC). Funds must also be fully FDIC insured.

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MINT's Value Capture

As mentioned above, the basic token in the Public Mint network is legal currency, and all transaction fees on the chain will be paid in legal currency. In other words, the project native token MINT released by IDO this Tuesday will not become the basic token on the Public Mint network, so where is the value of the token reflected?

On the whole, the value of MINT tokens will be reflected in the following three aspects:

• The first is governance. Holders of MINT tokens have the right to initiate proposals or participate in voting on the future development of the Public Mint network;

• The second is discounted handling fees. Similar to Ethereum, Public Mint’s on-chain operations (staking, transfers, and using certain applications) will also generate corresponding fees. Users who hold MINT tokens can enjoy certain fee discounts;

• Finally, users who hold MINT can get higher returns when they participate in the upcoming Earn Program of Public Mint. Here we need to explain what is the Earn Program, which aims to simplify the process for users to participate in CeFi and DeFi. After depositing funds in the program, users will receive synthetic legal currency (USD+) representing principal + income, and then you can Obtaining the income generated by a basket of CeFi and DeFi investment portfolios is similar to stablecoin mining in terms of user experience. Users who hold a small amount of MINT tokens will receive 70% of all profits, and the remaining 30% will belong to Public Mint; users who hold a large amount of MINT tokens will receive 90% of all profits.

The total supply of MINT tokens is 250 million. The number of tokens released in this IDO public offering accounts for 1% of the total supply, a total of 2.5 million, with a price of $0.1 and no lock-up restrictions.

As can be seen from the distribution of tokens in the above figure, the seed round and two rounds of private placement investors are the largest holders of MINT tokens, holding a total of 40% of the token supply, but there are certain lock-up restrictions.

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Prospects and challenges

According to the roadmap officially disclosed by Public Mint, the project will soon integrate USDC, and the Earn Program will be launched in Q3 this year. The focus of Q4 is to support more currencies such as the euro and the British pound.

The founder of Public Mint is Halsey Minor, the founder of CNET, a well-known American technology news website, and he is also an early investor in SalesForce, a software-as-a-service (SaaS) giant. Rich business experience allows Halsey to understand what the traditional business world needs and what he is concerned about. Through the business logic of Public Mint, we can roughly capture Halsey's design thinking.

However, creativity is often accompanied by challenges, and Public Mint is no exception. Just a few points.

First, Public Mint announced that it would break away from mature public chains such as Ethereum and choose to build a new blockchain network by itself.IBFT 2.0 PoAThe consensus mechanism greatly improves network performance, and the transaction confirmation time will be calculated in seconds. But at the same time, leaving Ethereum also means that Public Mint cannot share the security of the former, and the degree of security and decentralization of the new blockchain needs further observation.

Second, whether there is a contradiction between the openness and transparency of the blockchain and the privacy requirements of traditional businesses is also worthy of further discussion. All transactions in the Public Mint network will be permanently recorded on the chain, which is open and visible to anyone. If a specific company If the address is marked, all of its business actions will also be exposed to the public view, which is obviously not conducive to business competition. It is said that Public Mint has begun research on zk-SNARKs privacy technology, but when the program will be implemented has not been included in the roadmap.

Many challenges are still to be gradually overcome by Public Mint.