Table of Contents
- Introduction
- Background
- MONSTAv2 General Overview
- Unique Selling Point
- Keys to the Vault Bonus Game
- MONSTAv2 Tokenomics
- METH/MONSTA Financial Asset Allocation
- Transparency and Fund Management
- Migration Plan Overview for MONSTA and METH Holders
- Compensation for Discontinuation of DCE NFT Program
- Compensation for Discontinuation of the Eternal Cake Lotto Program
- Cycle End Process
- Frequently Asked Questions
- Conclusion
- The Vote
Introduction
We are excited to present the proposal for the migration of $MONSTA & $METH holders to the new MONSTAv2 token on the Base Chain. This transition aims to unify the $MONSTA and $METH projects into a single, more robust token, ensuring long-term sustainability, growth, and enhanced value for our community. The migration plan involves converting $MONSTA & $METH tokens to MONSTAv2 tokens at a predetermined conversion rate, consolidating the project's tokenomics and utilities, and introducing a dynamic new cycle system. The proposal outlines the conversion rates, key features of MONSTAv2, strategic benefits, and detailed financial asset allocations.
Background
The $MONSTA project was launched on the BNB Chain as an experimental protocol, introducing innovative concepts such as our vault and deflationary mechanisms. Over time, it achieved significant milestones, including the successful completion of Cycle 1, which set a precedent in the space. However, the project has faced challenges, particularly due to limited capital for marketing and development.
Similarly, the $METH project, launched on the Ethereum mainnet, started strong but encountered difficulties, primarily due to the high transaction fees on the Ethereum network. This impeded growth and led to strong community calls for change.
MONSTAv2 General Overview
MONSTA on Base Chain (referred to as MONSTAv2 as a working title in this document only) represents the next evolution of the $MONSTA and $METH projects, unifying them into a single token. This transition aims to address past challenges by simplifying tokenomics and utilities while introducing a robust mechanism to ensure project sustainability and growth.
Unique Selling Point
MONSTAv2 introduces an innovative and engaging approach to crypto investment with its dynamic cycle end process and strategic vault distribution. Each 12-month cycle culminates in an exciting burn-to-claim event where token holders can burn their MONSTAv2 tokens to claim their share of the secondary asset vault and secure their airdrop of the subsequent cycle's token. This gamified mechanism not only incentivizes long-term engagement but also enhances market dynamics, as holders must weigh the benefits of immediate value against future rewards.
The vault distribution is thoughtfully structured to ensure sustainability and continuous growth. At the end of each cycle, 60% of the vault is available for immediate claims by token holders, rewarding their commitment and participation. Additionally, 25% of the vault's assets are carried forward to the next cycle, creating a robust foundation for future growth and marketing opportunities. The remaining 15% is reserved for the "Keys to the Vault" program, an innovative monthly NFT series that further engages the community and supports tokenomics through buy-back mechanisms and strategic asset accumulation. This comprehensive approach makes MONSTAv2 a unique and compelling investment opportunity, combining immediate rewards with long-term growth potential.
Keys to the Vault Bonus Game
The Keys to the Vault bonus game offers a positive alternative to the previous experimental aspects of the original MONSTA protocol, like the inactivity tax, while retaining its original benefits like token deflation. Rather than penalize holders for inactivity, this program rewards them at the end of the cycle for being active throughout.
Each month, holders will have the opportunity to mint a "Vault Key" NFT for a nominal fee. The minting fee, payable in stablecoins or ETH, will be strategically allocated: 50% goes towards purchasing secondary assets for the bonus vault, 30% is used to buy back MONSTAv2 tokens (supporting token value and deflationary mechanisms), and 20% is directed to the project treasury for team, ongoing development, marketing, and operational expenses.
To claim their share of the bonus vault at the end of the cycle, users must collect all monthly Vault Keys. This encourages continuous engagement and strategic planning throughout the year. The bonus vault consists of 15% of the total assets in the primary asset vault, providing significant rewards for dedicated participants. For those who miss a key, a limited-time catch-up mechanism allows them to purchase missed keys at a higher fee, ensuring everyone has the opportunity to complete their collection. Additionally, keys are tradable on secondary marketplaces, offering flexibility and additional revenue through project royalties. This program not only supports the tokenomics of MONSTAv2 but also adds a layer of gamification and excitement, making it a cornerstone of the project's innovative approach to rewarding active community involvement. Final details of this feature may be subject to change and will be communicated as part of the product development process.
MONSTAv2 Tokenomics
Total Supply: 10,000,000,000
Chain: Base Chain
Allocation:
- 50% - Existing Holder Conversion (Includes current project-controlled tokens)
- 40% - Public Presale
- 10% - Initial Liquidity Pool
Tax Structure:
- Buy Tax: 3% Total
- 3% Vault Accrual: Purchase secondary assets for the vault
- Sell Tax: 3% Total
- 1% Burn: Supports deflation of total supply, therefore increasing cycle-end holders' share of the secondary asset vault.
- 2% Vault Accrual: Purchase secondary assets for the vault
METH/MONSTA Financial Asset Allocation
Treasury Assets: These assets consist of non-native tokens only, including ETH from the former MEPE LP unlock, BNB, and various other tokens from the combined liquidity pools and treasury reserves of $MONSTA and $METH.
Note: “Non-native” tokens means tokens/assets that are not $MONSTA, $METH, $MONSTAv2, etc.
Tentative Allocations:
- 10% for Liquidity Pool Funding: To be paired with the 10% MONSTAv2 tokens to create the initial liquidity pool. Any overages will be held for future LP needs/changes.
- 25% for Marketing: Aimed at extensive outreach to attract new investors and re-engage existing ones, crucial for a successful relaunch.
- 15% for Development: For funding ongoing technical improvements, new features development (Keys to the Vault, Lotto V2, etc.), and ensuring security measures (audits, etc.).
- 20% for Buy-backs and Post-Launch Chart Support: To support token price stability through strategic buy-backs and to provide market confidence. Acquired tokens will be repurposed (comps, marketing, etc.) or burned.
- 20% for Operational Expenses/Treasury: To cover daily operational costs, administrative and team needs, and unforeseen expenses, ensuring smooth project continuity.
- 10% for Reserves: Reserved to address possible challenges such as future liquidity needs, partnership or marketing opportunities, etc., allowing flexibility in response to market conditions.
Transparency and Fund Management
Transparency was a cornerstone of the previous projects and will continue to be one in the MONSTAv2 project. Each allocation of funds—whether stablecoin assets or project tokens—will be maintained in separately labeled wallets and/or Gnosis Safe multi-signature wallets. These wallets will be designated for specific purposes such as marketing, development, and operations, and will be used exclusively for their intended purposes. Idle funds will be “put to work” wherever possible to ensure additional revenue generation via things like liquid staking, etc.
The project is committed to being fully funded for the entire 12-month cycle, providing stability and confidence for all stakeholders. In the event that stable funds remain in any of the allocated wallets at the end of the cycle, they will be carried over to the next cycle's token and continue to be used for their designated purposes. Additionally, if there are any remaining MONSTAv2 tokens in these various wallets, they will be burned prior to the vault claim. This burning process will further increase the remaining holders' portion of the vault, enhancing their rewards and reinforcing the value of their investment.
Migration Plan Overview for MONSTA and METH Holders
Overview
The migration to MONSTAv2 represents an exciting new chapter for $MONSTA and $METH holders. This transition aims to unify both projects into a single token, simplifying tokenomics and utilities while ensuring project sustainability and growth. This document outlines the conversion rates, migration details, and compensation plans for existing holders, providing a clear and transparent roadmap for the future.
Conversion Rates and Migration Details
Conversion Method:
The conversion rates are designed to maintain fairness and consistency for all holders by preserving their relative share of the circulating supply after migration. By focusing on the percentage of the circulating supply each holder owns, we align with the original vault claim mechanism, ensuring that the relative value and influence each holder has within the new project remain proportional.
Conversion Rates:
- MONSTA holders will have their tokens converted at a rate of 1 MONSTA to 0.3 MONSTAv2
- METH holders will have their tokens converted at a rate of 1 METH to 9 MONSTAv2
This ensures an equal percentage reduction (approximately 74.9%) in circulating supply for both MONSTA and METH holders. Further details/information regarding the chosen method and rates can be found in the FAQ section at the end of this article.
Example Calculation:
- Suppose you hold 11.98% of the MONSTA circulating supply. After the conversion to MONSTAv2, you will hold approximately 3% of the MONSTAv2 supply, a ~74.9% reduction.
- Suppose you hold 11.98% of the METH circulating supply. After the conversion to MONSTAv2, you will also hold approximately 3% of the MONSTAv2 supply, the same ~74.9% reduction that MONSTA holders are subject to. This is due to the increase in supply of MONSTAv2 compared to METH.
Migration Process:
- Snapshot and Announcement:
- A snapshot of all MONSTA and METH holders will be taken to determine the initial allocation of MONSTAv2 tokens.
- Official announcements will provide detailed instructions on the migration process.
- Token Swap:
- Holders will be able to swap their MONSTA and METH tokens for MONSTAv2 tokens based on the established conversion rates.
- Claim Mechanism:
- The final claim/distribution method is still to be finalized, but our aim is to provide a user-friendly interface for holders to claim their new MONSTAv2 tokens on Base Chain according to their specific allocations determined in the snapshot. We have the ability to pause trading on the MONSTA and METH contracts to ensure fair calculations and a streamlined process where holders won’t be required to send in their existing tokens and be subject to transaction fees, but will still require user opt-in to ensure we’re not migrating dead/inactive wallets.
Compensation for Discontinuation of DCE NFT Program
Background:
The DCE NFT program has not performed as expected and, as part of the migration to MONSTAv2, the program will be discontinued.
Compensation Plan:
- DCE NFT holders will receive additional MONSTAv2 tokens from an available token pool of 150 million MONSTAv2 (1.5% of the total supply).
Distribution:
- With 202 DCE NFTs in circulation, each NFT will be eligible to claim approximately 742,574.25 MONSTAv2 tokens.
Opt-In Process:
- Holders must send their DCE NFTs to a designated project wallet to receive their MONSTAv2 tokens. This ensures that only active and engaged holders receive compensation.
Additional Benefit:
- DCE holder wallet addresses will be whitelisted to mint a free Vault Key NFT each month as part of the "Keys to the Vault" program. Additional details will be provided at a later date when the program rolls out.
Compensation for Discontinuation of the Eternal Cake Lotto Program
Background:
The Eternal Cake Lotto program will be discontinued as part of the transition to MONSTAv2.
Compensation Plan:
- The program will be replaced with a revamped v2 lotto or equivalent during the course of the first cycle.
- Holders will be compensated with replacement tickets, and more details will be provided as part of the product development process.
Cycle End Process
- The project is committed to being fully funded for the entire 12-month cycle.
- Any remaining non-native token funds in the allocated wallets at the end of the cycle will be carried over to the next cycle's token and continue to be used for their designated purposes.
- Any remaining MONSTAv2 tokens in these wallets will be burned prior to the vault claim, increasing the remaining holders' portion of the vault.
Frequently Asked Questions:
Why were the conversion rates for MONSTA and METH holders chosen this way?
Answer:
The conversion rates were designed to ensure fairness and consistency for all holders by maintaining their relative share of the circulating supply after the migration. By focusing on the percentage of the circulating supply each holder owns, we align with the original vault claim mechanism, which is based on this same principle. This approach ensures that the relative value and influence each holder has within the new project remains proportional, maintaining the integrity and fairness of the original projects.
Why does this method make sense and is the best choice for all holders?
Answer:
This method directly translates the relative ownership and rewards structure from the old tokens to the new token, MONSTAv2. By maintaining each holder's percentage of the circulating supply, we ensure that their potential rewards from the vault and their influence within the project are preserved. This method avoids the complexities and potential inequities that could arise from other conversion methods, such as those based on market caps, which can be volatile and less reflective of long-term value.
Why are METH holders getting more tokens than MONSTA holders?
Answer:
METH holders receive more tokens than MONSTA holders because METH has a much smaller circulating supply compared to MONSTA. The conversion rates were calculated to ensure both METH and MONSTA holders experience the same proportional reduction in their circulating supply percentage (approximately -74.9%). This ensures fairness across the board, as each holder's influence and rewards remain consistent relative to the total supply.
Why wasn't another method chosen using the current market caps of each project?
Answer:
Using current market caps as a basis for conversion would introduce significant volatility and uncertainty into the process. Market caps can fluctuate dramatically due to market conditions and short-term trading activity, making it a less stable and predictable metric. By focusing on the circulating supply percentages, we provide a more stable and equitable foundation for the conversion, ensuring that all holders are treated fairly regardless of market conditions.
Why isn't there just an early vault claim/distribution for MONSTA and METH so that the vault values aren't even factored into the migration?
Answer:
An early vault claim/distribution would indeed simplify the migration process, but it would undermine the long-term value proposition and incentives built into the projects. The vaults are designed to reward holders who remain invested over time, and an early distribution would disrupt this mechanism. By merging the vaults and maintaining the claim structure, we preserve the integrity and long-term rewards for holders, which are key elements of the projects' value.
Why is 40% of the new token supply allocated for a public presale?
Answer:
Allocating 40% of the new token supply for a public presale is crucial for several reasons. First, it attracts new investors, providing fresh capital and broadening the token holder base, which is essential for the project's growth and market adoption. Second, the funds raised through the presale can be used to support marketing efforts, and cover development and operational expenses, ensuring the project's stability and sustainability. Finally, a public presale generates excitement and visibility for the project, helping to re-engage existing holders and attract new interest, ultimately contributing to the overall success of MONSTAv2.
What are the benefits of having a defined 12-month cycle without utilizing elastic token supply like the previous MONSTA?
Answer:
The defined 12-month cycle without an elastic token supply offers several benefits:
- New/Fresh Chart Each Cycle: Each 12-month cycle starts with a new chart, allowing for a reset that can attract new interest and create opportunities for price appreciation from the beginning of each cycle.
- Launch Marketing and Hype: The start of each cycle can be marketed as a new launch, generating hype and excitement. This helps to continually attract new investors and keep the community engaged.
- Flexibility in Blockchain: Each cycle doesn't necessarily have to be on the same blockchain. This flexibility allows the project to adapt based on market trends and technological developments, ensuring it stays relevant and competitive.
- Flexibility in Accumulation of Secondary Assets: The project can strategically accumulate secondary assets during each cycle, optimizing asset management and enhancing the vault's value.
- Ability to Raise New Funds Ensuring Sustainability: Each new cycle provides an opportunity to raise funds through mechanisms like presales, ensuring the project's sustainability and ability to fund ongoing development and marketing efforts.
- Dynamic Decision-Making: The cycle structure introduces an element of strategic decision-making for holders. They must decide whether to sell their tokens for immediate value or burn them to claim their share of the vault and receive the airdrop for the next cycle's token. This gamified aspect adds excitement and engagement to the project.
- Security & Trust: By launching each cycle as a new token, we’re able to keep the flexible aspects of the previous projects while avoiding the use of things like proxy contracts which are often problematic in the space and result in poor security scores on charting platforms such as Dextools and DexScreener.
Conclusion
Supporting this merger and migration proposal ensures a fair, sustainable, and promising future for both MONSTA and METH holders. The conversion rates maintain the relative value and rewards each holder has earned, while the new project on Base Chain offers enhanced growth potential and broader appeal. By coming together as a unified community, we can leverage our combined strengths to create a more successful and rewarding project for everyone involved.
The Vote
The final decision rests in the hands of you, the holders. Two snapshot proposals have been prepared, one for $MONSTA token holders and one for $METH token holders. Both proposals will need to be passed in order for the proposed plans above to proceed. After you have carefully read the entire proposal and plan overview, please proceed to the appropriate snapshot proposal below to cast your votes. Voting will remain open for a period of 2 weeks.
