Mad Meerkat ETF
What is Mad Meerkat ETF?
The Mad Meerkat ETF (METF) has undergone some major changes to promote growth and reduce reliance on inflationary mechanics in the crypto market. In particular, METF is now hardcapped, which means that no more METF tokens will be issued. Additionally, the bonding feature has been removed from the platform.
To encourage long-term holders of METF, a new protocol profits distribution staking mechanism has been introduced. This involves buying METF tokens from protocol profits and then redistributing them, which puts constant buy pressure on METF. By focusing on capital appreciation of the token, these changes aim to reward long-term believers of the Mad Meerkat ecosystem.
The profits earned by the METF Assets Under Management (AUM) will be directed towards a protocol profits distribution pool, as will the trading fees generated from the DEX. This is aligned with the original intention of METF, which was to represent ecosystem health. Re-distributing profits via a staking mechanism will allow the free-market to re-balance itself, resulting in sustained growth in token value.
METF is the first decentralized ETF protocol that runs on the METF token. It is known as the DEX Traded Fund (DTF) and seeks to track high-performing assets in the MM Finance DEX with strong value accrual strategies. The goal of MM ETF is to build a policy-controlled Decentralized ETF system that can function as a global unit-of-account and medium-of-exchange currency representing a basket of goods/investments.
In the traditional world, an ETF is a type of pooled investment that operates much like a mutual fund. Unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way a regular stock can.
Stakers can benefit from MM ETF through price appreciation and supply growth. The protocol sells METF bonds when there is a healthy premium, and the premium earned is distributed to stakers. To ensure a healthy premium, the protocol must accumulate more assets to raise the intrinsic value of the token. Over time, the protocol will be adjusted with policies to increase the METF floor price, reducing the inflation of the total token supply while allowing the protocol to buyback its own tokens, reinforcing the rising price floor.
Bonders can benefit from price consistency. By committing capital upfront and receiving a fixed return in METF tokens at a set point in time, bonders profit from a rising or static price for the METF token. This is achieved through the bonding system, which accumulates valuable MM ecosystem assets that contribute to the rising price floor strategy.
Overall, these changes aim to promote growth in the Mad Meerkat ecosystem and reduce reliance on inflationary mechanics in a down-trending crypto market. The new protocol profits distribution staking mechanism is expected to encourage long-term holders of METF, while the hardcap and removal of bonding feature will contribute to the sustained growth in token value.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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