Algorand-powered Microequities Exchange MESE.io launches hybrid index ETF token
MESE.io, an Algorand-powered tokenised microequities exchange, has launched MESX, an index ETF token that acts as a centralised exchange token and exhibits DeFi token mechanics.
MESX is backed by Microsoft, Apple, Tesla, Twitter, Amazon, Netflix, and Google (MATTANG) stocks held in its index fund.
MESX can be traded on MESE.io and will launch with a USD10,000 index ETF pool value of MATTANG stocks, which is equivalent to 10,000,000 MESX tokens. Initially, each MESX token will represent 1/10,000,000 shares of the MESX pool of equity for a value of 0.001 USD per MESX token.
Drawing on the recent innovations in the DeFi space, MESX has been modelled to be a sustainable DeFi product on a CeFi platform. Similar to liquidity incentive programs in decentralised finance, the MESX tokens held on MESE.io receive continual staking rewards based on 50 per cent of all net transactional revenue on MESE.io. This 50 per cent net revenue share directly contributes to the MESX index ETF pool which mints an additional supply of MESX for a sustainable DeFi staking pool resulting in a positive feedback loop.
“We are massive fans of the Uniswap model and we wanted to see if we could apply those innovations to a CeFi platform,” explains Sinjin David Jung, Managing Director at IBMR.io. “The beautiful thing about DeFi is that growth and value come from the process of participation in revenue sharing, this is at the heart of the decentralised network model. But, sharing in revenue without actually creating revenue is problematic as many DeFi projects were solely dependent on secondary market speculative appreciation for a basis of value. The key to sharing revenue through the process of participation is in the mechanism of staking.
"In the case of a DEX AMM, the staking rewards are provided on the basis of providing liquidity to ensure trades can happen, but for our model, we have based staking rewards on our overall net transactional revenue on the exchange. Unlike the current exchange token model, we are not burning exchange tokens with profit, but are investing those net revenues into the underlying index ETF pool so that we can mint more supply resulting in more staking. We hope that this will be a sustainable DeFi model of value where MESX can also act as a long term microasset for emerging market participants.”
With the global fintech market expected to grow at an annual rate of 24.8 per cent, surpassing its USD120 billion market value, MESE.io anticipates the introduction of innovative DeFi and crypto exchange models into microfinance will act as the catalyst for contributing to financial inclusion and growth in emerging markets.
As part of the token model to maintain stability, the 50 per cent net revenue share will continue until a maximum cap of five billion MESX tokens which represent approximately 11 Million in equity assets. After the maximum supply cap is reached, 5 per cent of Net Revenues of MESE.io will be used to buy stock equity for the index ETF pool indefinitely. MESX will be enabled as a governance token for its index ETF fund after the maximum cap is reached. At which time MESX II will be issued starting with 45 per cent net revenue share and the same DeFi exchange token model. MESX tokens will be released into the market on a daily constant schedule.