There are 21 million Bitcoins in existence in total.
Every time when people talk about Bitcoin, some people will always mention the total number of Bitcoin to emphasize its rare value. In fact, as new bitcoin is still dug up every day and then circulated to the market by miners, the sell-off pressure on Bitcoin always exists.
This will inevitably lead to a question: if Grayscale does not continue to buy Bitcoin, if people find another underlying asset better than Bitcoin, can the current purchasing power support such a high price?
High Turnover Rate May Hinder Value Investment
In the past, there were various types of crypto assets in the market. However, due to the high circulation velocity (turnover rate), it was difficult for most digital currencies to maintain a long-term appreciation trend when the investment scale remained unchanged. Moreover, unlike the stock market, blockchain enterprises could not buy back their tokens from the market. At the same time, there was a lack of automatic investment allocation of funds to maintain the long-term stability of the price.
As a result, the prices of assets favored by traditional institutions tend to be higher and higher. It usually takes as long as a year for obvious price correction, because their inflation can be predicted, which also enables their market price to be evaluated positively.
The Origin of Mimosa
Mimosa is named after mimosa in the plant kingdom. In the real world, Mimosa’s leaves will respond to light and heat, and will close and shrink when touched by external forces, while Mimosa’s token economy has deflationary nature. The two properties are similar, so that was how we name Mimosa token, whose ticker is MIMO.
Unlike some other projects that encourage the on-chain asset flow, Mimosa is not only used for daily trading, it can also be used as a major tool to deal with reality and encrypted asset inflation. Through the existing mature smart contracts and the established permanent deflation model, Mimosa can make the assets have predictable value.
About MIMO
Mimosa’s token name is MIMO, with a total number of 16 million. No matter if it is an official address or a node participant, Mimosa will require each address to destroy 5% of the amount transferred on the chain. After the initial establishment of MIMO, address will be allocated according to the requirements of Mimosa whitepaper. Therefore, it is estimated that only 15.2 million MIMO will be left after the allocation. After that, 5% of MIMO will be used for initial circulation.
At the same time, in order to facilitate the subsequent construction of more functions, Mimosa designed a parameter of the minimum trading unit to prevent participants from escaping deflation, that is, the minimum trading unit of 0.05 MIMO. When participants transfer 1–0.05 MIMO on the chain, 0.05 MIMO will be destroyed at a fixed level. This is cheaper and more friendly to users than other on-chain transfer deflation models, and it also helps participants to comply with the destruction rules.
Next, we will announce how to initially get of Mimosa. We hope that the market circulation of MIMO will not exceed 1 million in the first year (without calculating the 5% destruction ratio at conservative estimate), which will help the participants to enjoy the asset appreciation.
However, high transaction fee may reduce people’s intention to transfer assets on the chain. Therefore, Mimosa will gradually release attractive applications on the chain to increase the usage scenarios of MIMO.
At present, Mimosa project is in progress. Please follow us if you want to learn more.
Twitter：@MimosaOfficial
Telegram：@Mimosa Official
