Dear MONSTA and METH Communities,

Today, we present a bold proposal to shape the future of our $MONSTA and $METH projects. This step aims to consolidate gains and address challenges.

Launched three years ago, $MONSTA introduced innovative concepts on the BNB Chain. Our journey, marked by achievements like the successful completion of Cycle 1, showcases our community's commitment and our team's resilience.

Despite successes, we've faced challenges, especially during the prolonged bear market. This impacted our projects but not our determination to succeed.

Recently, we've engaged with the community about potential protocol changes, such as removing iTax from $MONSTA and considering new chain expansions. These discussions highlighted the need for significant adjustments.

$MONSTA struggles with limited capital for essential functions like marketing and development, while $METH faces high transaction fees on Ethereum. These barriers necessitate a pivotal shift. With the upcoming release of the MEPE LP funds, we’re positioned to revitalize both projects, adding holder value.

You may have picked up hints from last week’s cartoon clip. Some of you may have guessed what's coming next… but the final scene will be decided by you, the community....

Please read the attached discussion proposal fully before casting your vote 👇

Discussion Proposal for the Merger of $MONSTA and $METH

Introduction

Dear MONSTA and METH Communities,

Today, we present a transformative and positive proposal aimed at addressing the current challenges facing our $MONSTA and $METH projects. This proposal outlines a merger of the two projects into a single, new token on the Base Chain, with a streamlined and enhanced ecosystem. Your participation in the upcoming governance votes is crucial to determining the future direction of our projects.

Background

$MONSTA

• Launched three years ago on the BNB Chain as an experimental protocol.
• Introduced innovative concepts like the vault and deflationary mechanisms.
• Successfully completed Cycle 1 but faced significant challenges due to limited capital for marketing and development.

$METH

• Started strong on the Ethereum mainnet but struggled with prohibitive transaction fees.
• The community has expressed a strong desire for a more accessible and economically viable platform.

Proposal Overview

We propose to merge $MONSTA and $METH into a new token on the Base Chain. This new token will encapsulate the best features of both projects while introducing significant improvements and simplifications.

Key Features

• Unified Multi-Asset Reserve Vault: The new token will feature a unified vault that combines the existing asset reserves of $MONSTA and $METH. This vault will be a key component of our ecosystem, supporting value stability and holder rewards. This change would see additional changes to the vault system including a reduced 1 year cycle length, future cycle reserve allocations, and bonus user engagement rewards.
• Enhanced Transaction Tax Structure: The new token will utilize a revised transaction tax system designed to efficiently accumulate assets in the vault. This system will be streamlined to ensure that it supports the sustainability of the project while providing tangible benefits to token holders.
• Innovative Reward Mechanisms: Replacing the punitive iTax component from $MONSTA, a new "Keys to the Vault" feature will introduce a rewarding mechanism for active participation. This system will involve NFTs that can be minted, offering holders additional ways to engage with and benefit from the ecosystem. We’ve also heard strong calls for the return of “crumbs” rewards and so we’re also exploring ways to incorporate something similar via the Keys to the Vault program. 
• New Cycle End Process: The new token will be a standard contract that does not utilize proxy or rebase mechanisms. This means we won't face issues or red flags from automated token scanners or charting websites. Vault claims will occur after a 1-year period. After the cycle ends, the next cycle will begin as a new token (e.g., monsta v3), providing marketing opportunities and renewed attention. Existing holders would be compensated through methods like airdrops or burn-to-claim. After a set claim period, the v2 liquidity pool could be adjusted based on the burned tokens, with remaining liquidity available for any latecomers. This system requires further exploration and will be communicated in further detail in the future. 

Strategic Benefits

Increased Accessibility and Efficiency

• Lower Transaction Fees: By migrating to Base Chain, known for its low transaction fees and high scalability, we will make it easier and more cost-effective for new users to join and for existing users to transact, fostering broader adoption and deeper engagement. MONSTA holders will continue to enjoy the low gas fees they’re used to from BNB Chain, and METH holders will benefit from significantly cheaper gas fees on Base Chain when compared to Ethereum mainnet. 
• Market Alignment and Growth Potential: Base Chain’s growing popularity and technological innovation provide a strategic advantage. Moving to this platform puts us at the forefront of blockchain development, opening up new opportunities for collaboration and growth.
• Partnership Opportunities: As a new and growing chain and ecosystem, Base offers many opportunities for collaboration and partnerships. We also have the opportunity to attempt a new collaboration with PancakeSwap, who is also expanding to Base.
• Streamlined Operations: Consolidation into a single token eliminates redundancies and focuses resource allocation.

Enhanced Token Utility and Ecosystem Growth

• Multi-Asset Reserve Vault: The unified vault consolidates the assets from both $MONSTA and $METH, creating a more robust mechanism for value support and distribution. This vault will continue to be filled via transaction taxes, providing ongoing rewards to token holders.
• New Reward Mechanisms: The introduction of the "Keys to the Vault" NFTs represents an innovative approach to user engagement. Unlike the previous iTax system that penalized inactivity, this new model rewards participation and contributes to a more positive community interaction.

Broader Market Reach and Technological Alignment

• Increased Market Presence: Migrating to Base Chain positions "MONSTA on Base" within a newer, rapidly growing blockchain ecosystem that is attracting a diverse range of developers and investors, enhancing visibility and adoption.
• Technological Advantages: Base Chain’s EVM compatibility allows for easy creation and implementation of new features.

Long-Term Sustainability

• Project Viability: By addressing the critical issues of cost, complexity, and scalability, "MONSTA on Base" is poised for longer-term sustainability. The streamlined tokenomics and enhanced utility make the project more adaptable to the changing crypto landscape.
• Investment Attraction: The new platform, with its clear focus on reducing costs and enhancing benefits for holders, is better positioned to attract new investments and partnerships, driving further growth and stability.

Other Important Details

While exciting and ambitious in nature, - these plans would come with significant changes all aimed at simplifying the components of the existing protocols that aren’t working, or hinder our growth and adaptability. The most noteworthy are:

• Discontinuation of DCE NFTs: The program has not worked as initially planned. Current rewards are minimal which prevent additional supply being made available for others. Potential considered changes to current itax further threaten reward potentials. Therefore, we intend to discontinue the program and compensate holders with an additional allocation of the new token. This will be made available for active DCE holders to exchange their NFTs as compensation for the closure of the program.
• Replacement of Eternal Cake Lotto: The current lotto prize pools are funded from a percentage of iTax transactions which would ultimately cease to exist upon the migration to a new token and would mean the end of the Eternal Cake Lotto in its current form. We’re proposing that a new lotto game be created post-launch of the new token. The exact dynamics are still to be finalized, but based on previous community feedback we would be looking at a system that utilized single use tickets. Hang onto your Eternal Cake Lotto tickets for now - we’ll announce swap/migration plans for those later on!
• Vault Changes: Merging of two projects that contain secondary vault assets means that the new MONSTA token will contain various different assets, potentially on multiple chains! While we have some initial plans including the introduction of a new “Keys to the Vault” dynamic, should this migration proposal pass, we’ll engage with holders of the new token on any planned changes to vault dynamics.
• Tax Changes: In our aim to simplify the protocol, we’ll be making changes to the tax structure of the new token. Predatory features like iTax will be eliminated. The buy/sell tax will be set at 6%.

Financial Assets and Treasury Allocation

Consists of total available treasury assets: BNB, ETH, Stablecoins, etc.

Allocation

• 25% for Marketing
• 20% for Development
• 20% for Buy-backs and Post-Launch Chart Support
• 25% for Operational Expenses/Treasury
• 10% for Strategic Reserves

*Tentative allocations. To be finalized during the final snapshot vote.

Implementation Strategy

Token Migration

• Should this initial discussion proposal pass, detailed plans for $MONSTA and $METH holders to transition to the new token will be presented via a final snapshot vote
• The process will be user-friendly and secure, with step-by-step guidance.

Marketing and Community Re-engagement

• A significant and strategic marketing strategy will be implemented along with a public presale for the launch
• Focus on reintroducing the unified project to the crypto community.

Governance Votes

To proceed with this proposal, we are requiring approval from both $MONSTA and $METH holders. Separate governance votes will be held, and both must support the merger plan for it to move forward. This initial vote is a temperature check to gauge support and interest before further development of a migration/merger plan.

Conclusion

The proposed merger and transition to "MONSTA on Base" represent a bold step towards revitalizing our projects. By consolidating our strengths and addressing existing challenges, we aim to create a more dynamic, resilient, and community-focused platform. We thank you for your continued support and trust as we take these steps forward together.

FAQs

Q: Why are $MONSTA and $METH merging into a new token on the Base Chain?

1. A: The merger addresses the challenges both projects face, such as limited capital for marketing and high transaction fees on Ethereum. Consolidating into a single token on the Base Chain allows for streamlined operations, reduced costs, and enhanced overall utility and sustainability.

Q: How will the new token improve the ecosystem for $MONSTA and $METH holders?

2. A: The new token will feature a unified multi-asset reserve vault, a streamlined transaction tax structure, and innovative reward mechanisms like the "Keys to the Vault" NFTs, enhancing value stability, community engagement, and long-term project viability.

Q: What will happen to my existing $MONSTA and $METH tokens?

3. A: Your existing $MONSTA and $METH tokens will be swapped for the new "MONSTA on Base" tokens. The specific conversion rates and process will be detailed and communicated to all holders to ensure a smooth transition.

Q: How will the new transaction tax structure benefit token holders?

4. A: The new transaction tax structure (6% Buys, 6% sells, 0% transfers) is designed to efficiently accumulate assets in the vault, supporting project sustainability while providing tangible benefits to token holders, such as enhanced rewards and improved market stability.

Q: What are the key features of the new "MONSTA on Base" token?

5. A: Key features include a unified multi-asset reserve vault, a simplified transaction tax structure, the "Keys to the Vault" reward mechanism, and migration to the Base Chain, which offers lower transaction fees and higher scalability.

Q: How will the "Keys to the Vault" reward mechanism work?

6. A: The "Keys to the Vault" mechanism involves minting collectible NFTs that reward active participation. Holders can mint these NFTs for a nominal fee, which will contribute to buying and burning MONSTA tokens, adding to a bonus vault, and supporting the treasury. Collecting all keys will entitle holders to a share of the bonus vault at the end of each cycle.

Q: What are the proposed allocations for the new token's financial assets and treasury?

7. A: The proposed initial allocations are:
   • 25% for Marketing
   • 20% for Development
   • 20% for Buy-backs and Post-Launch Chart Support
   • 25% for Operational Expenses/Treasury
   • 10% for Strategic Reserves

^{*Tentative allocations. To be finalized during the final snapshot vote.}

Q: Will there be a public presale for the new token?

8. A: Yes, there will be a public presale primarily aimed at increasing marketing benefits, exposure, and raising funds for the initial liquidity pool creation. This will attract more attention to the project and provide the necessary liquidity for a strong launch.

Q: How will the community be involved in the final decision-making process for the merger?

9. A: The initial governance vote will serve as a discussion vote to gauge community support and interest. If the proposal passes, a final on-chain vote will present detailed plans, including conversion methods and allocation options, incorporating community feedback.

Q: What will happen if the merger proposal fails?

10. A: If the proposal fails, $MONSTA will continue to operate as it currently does without new developments. The unlocked MEPE LP funds will continue to be allocated to the $METH project either as originally outlined or in a new form determined through further planning and feedback with holders.

Q: How can we be expected to vote on this without knowing the conversion or migration plan?

11. A: We understand your concerns about not having the exact details of the conversion or migration plan at this stage. The initial vote is designed as a discussion proposal to gauge community interest and support for the idea of merging $MONSTA and $METH into a new token on the Base Chain. This vote will help us determine whether to proceed with developing detailed plans, including conversion rates and migration processes. It's important to note that this initial vote does not lock anyone into any decisions. If the community shows support for this merger, we will then work on finalizing the detailed migration and conversion plans. These plans will be created with extensive community feedback and collaboration. Once we have a comprehensive plan, a final snapshot vote will be conducted where you can see all the details. Voting in favor of this initial proposal now simply allows us to move forward with the detailed planning process. It ensures that the team can dedicate the necessary resources to develop a fair and transparent conversion and migration plan that will ultimately require your final approval. Your support at this stage does not commit you to anything irreversible but enables us to explore and present a fully fleshed-out plan for the final decision-making vote.

Q: What are some of the key components of the new token that will be decided in the final snapshot?

12. A: Some key components that will be included in the final snapshot vote would include:
    • Conversion rates for $MONSTA and $METH holders
    • Allocations/tokenomics for the new Token
    • Public presale allocations and funding plans
    • Migration/claim process for holders (manual claim, airdrop, etc. TBD)