MCP 22024/5 - Discussion Proposal to Merge MONSTA & 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 modifications 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 come with significant changes 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, preventing additional supply being made available for others. Potential changes to the 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 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

We have also created a list of frequently asked questions for you which we encourage you to read here: https://monstacorp.com/discussion-proposal-mcp-2024-4/