We are glad to announce the launch of the new payout split program, aimed to increase the utility of MIDAS token and connect platform growth with the MIDAS market.
What is a payout split?
On a daily basis, Midas will analyze total payouts made to investors across all coins/tokens and initiate a 10% payout split to the MIDAS market. From a total daily payout of 0.3 BTC to users, 0.03 BTC would flow to the MIDAS market daily – meaning almost 1 BTC per month! The rate of payout split will be reviewed on a six-monthly basis.
This differs from the common revenue split. Where a revenue split is based on the revenue the company is generating, which can vary drastically from month to month, the payout split will be based on the TVL (total value locked) on the Midas portfolio and the rate of payouts we are generating for users. This will provide a consistent and sustained flow of liquidity to the new MIDAS market.
Simply put, if you invest in ANY coin/token on Midas, this will directly contribute to asset flow on the MIDAS market.
What happens to purchased MIDAS tokens
Purchased tokens go to one of three locations:
1. Growth fund
Funds will be held and utilized with the sole purpose to provide opportunities for growth to Midas platform and/or token. Possible solutions could be:
- providing liquidity to new or existing liquidity pools to provide strength to markets and open opportunities on new platforms.
- providing opening liquidity on new farming or staking options for users, which increases the outside awareness of Midas.
- marketing opportunities, be that internal or external activity which we have assessed open new opportunities for growth.
2. Investor APY boost
Funds collected in this allocation will be released in the following six-month cycle of emission rates – upon the six-monthly review of smart contract emissions
Funds enter a designated burn wallet address that will not be recovered.
Asset flow from the payout split will be reviewed on a six-monthly basis to ensure funds purchased through the Payout Split are being utilized to provide optimal long-term results. For launch, 50% of purchased MIDAS will flow towards the growth fund and 50% towards the Investor APY boost fund.
Where do these purchases take place?
We will make complete purchases for the payout split through the two largest liquidity for MIDAS token. At present, this is Spiritswap and Bombswap. Prices through these platforms directly contribute to live market data for MIDAS on CMC and Coingecko and will assist in providing maximum support and growth to the MIDAS market.
Why has this replaced MIDAS Lock-in?
Lock-in provided relatively strong results, but was not a scalable solution and placed obstacles during the onboarding process for new users. From an active user base of over 7000 users, only 400 +- activated Lock-in. Whilst funds held in Lock-in equated to around 12% of the circulating supply, the negative impacts from Lock-in were placing barriers in the way of users accessing optimal returns on their assets and ultimately impacting the retention rate of new users on Midas.
We took the decision to close Lock-in at this time since the larger Midas platform became, the more difficult the severing of Lock-in would become. This decision created a rocky few weeks for MIDAS coin, but one that will help future growth. By removing the obstacles of new user onboarding, the results have been explosive and our TVL has increased by 35% in only one month.
As a result of this growth, the Payout Split allows Midas to optimize liquidity flow to the MIDAS market exceeding the demand on the token that Lock-in provided. The Payout split is not dependant on user adoption and actively provides MIDAS tokens with growth opportunities through token reallocation. It does all of this whilst providing ALL users with the best crypto returns
Where the impacts of Lock-in negatively suppressed overall growth, the Payout split provides opportunities for Midas platform and token to flourish.