Tokenomy - how a token grows in value

Last updated 2 years ago

Deflationary MOS token

The Mosaico platform is powered by the native MOS token, which is the main medium of exchange on the Mosaico platform. By investing in an MOS token you have the option to:

purchase project tokens (MOS)
vote (staking MOS >> GMOS)
receive the Mosaico Assets token (staking MOS >> TMOS)
participation in private sale (staking MOS >> GMOS)

Additionally, all projects on the Mosaico platform will be exchangeable in a pair to the MOS token. This will increase the volume of operations on the token, thus guaranteeing the liquidity of the token, increasing its value and attractiveness. The MOS token is exchangeable to other crypto currencies, stablecoin using its own DEX, and to FIAT using payment processors.

A BURN mechanism has been designed into the MOS token so that each year the token gains in Value. This is described in section

The development of the Mosaico platform is inseparably linked to how much profit the projects on the Mosaico platform will generate. Each new tokenized project increases the number of people in the community, which increases the liquidity of the token, which in turn increases the value of the token. Thanks to this solution we create an environment in which everyone involved in the Mosaico project cares about the development of the platform.

Distribution of issued tokens

Due to the dynamic development of the platform and changes regarding the MOS token, the current token distribution is as follows:

Transaction fees

Our platform benefits from transaction fees, yet for MOS Token hodlers we introduced a whitelist of transactions, which does not count to Mosaico revenue.

Whitelist of transactions:

Purchase of a MOS token
Purchase tokens for new projects using the MOS token
Tokens transferred and paid to Smart Contract TMOS
Tokens transferred and paid to Smart Contract GMOS
Voting tokens

For other transactions, the platform introduced transaction fees at the level of 3% for investors, where

1.5% of each transaction goes to burn MOS tokens
0.5% goes to support highly innovative startups

Issuers have separate rules for transaction fees, which are agreed upon in each contract, depending on risks covering the company's undertaking.

Gas fees generated by the Polygon network apply to all transactions on the blockchain and are covered by transactions' requestors.

The 3% fees are subject to

Off ramp
Transactions on the inside market (excluding MOS token)
Transfers between wallets.
External transfers from the Mosaico platform

MINT and BURN rules in the MOS Token:

The MOS token will have a function that will issue further MOS tokens when certain conditions are met.

Total Supply is 280,000,000 MOS

Conditions for issuing new tokens:

1.When an external investment fund invests in Mosaico. For the investment amount, it will buy half of the tokens from Mosaico and half from the secondary market at a price not lower than the stock market price. Maximum token issuance of 5,000,000 MOS per year.

Example: The investment fund Kowalski & Partners invests 10m Euro in the Mosaico platform. It buys 5 million Euro from the secondary market as MOS tokens, so the price of the token is guaranteed to rise. Another 5 million Euro Mosaico receives in cash and in return the Fund receives newly minted tokens. Kowalski & Partners Fund trades the assets as it sees fit.

2. 100,000 MOS for each new project tokenized on the Mosaico platform.

Maximum of 50 projects, no more than 5,000,000 MOS per year. Newly issued will be with each issue that reaches softcap. 100,000 MOS will be distributed to:

10% of this amount is used for employee salaries (bonus to be exact)
30% goes to Insurance for failed projects:

A. Which did not collect soft cap and there is a need for covering transaction fees

B. Projects that will fail or fail very quickly (minimum life span is 3 years)

10 % will go to potential business partners
50% goes to Vesting for a year
Minting tokens for each instance are independent.

For example, we have a project where the purchase of primary tokens after a certain period is guaranteed. The project has raised 1.5 million and guarantees the purchase of tokens with 30% profit for the investor.

1 500 000 PLN + 30%= 1 950 000 PLN of which an additional 1.5% goes to burning.
Amount to be burned= 29250 PLN
Number of burnt MOS tokens (at the price of the last ICO round 0,07 PLN) = 417 857 MOS
This means that the project will burn 4x more MOS tokens than will be issued.

Token Burning Conditions:

We will burn 15,089,424.62 MOS tokens in the first year after launching transaction fees on the Mosaico paltform.
1.5% of the value of each transaction goes to burn MOS tokens
The number of tokens burned will depend on the number of transactions on the Mosaico platform and the value of the MOS token.

With this solution, our token, despite issuing new tokens, becomes deflated and the supply of tokens is systematically reduced. This will have a positive effect on the price of the token.

For example, a user wants to perform a non-exempt transaction for an amount of 100 MOS. A transaction fee of 3 MOS will be charged from the total amount, which will be distributed as follows:

- 1.5 MOS tokens will be designated for incineration

- 0.5 MOS token will be allocated to Venture Fund

- 1 MOS token will be allocated to Bounty Wallet

With this solution, we forecast burning 20million MOS tokens.

Even if new tokens are issued (maximum 10 million per year) MOS will be deflationary.

Projected MINT and BURN token volumes in the context of the next 10 and 15 years

From each transaction on the mosaico platform we charge 3% of the transaction value, and half of this, i.e. 1.5% of the transaction value, will be used to burn the MOS token (except for transaction from the whitelist).

Within 10 years:

1.5% is donated to token burning
Total number of tokens issued- 280,000,000 MOS
Projected amount of tokens burned over 10 years- 13,000,000 MOS
Total MINT tokens for 10 years - 100,000,000 MOS
The average number of tokens burned in one year- 13,000,000 MOS
The average number of tokens minted in one year- 10,000,000 MOS

After 10 years, we will finish the process of issuing new tokens, while burning them will continue. This will make MOS tokens more valuable in the long run by reducing their circulating supply.

Chart presenting minting and burning tokens over the course of 15 years and the number of tokens in circulation. yellow - the number of tokens in circulation red - the number of tokens burned blue - the number of new tokens entering the market

Number of tokens in circulation, over the course of 15 years

Last updated 2 years ago