In Jan 2021, the epidemic has enveloped all of Japan. Only in Tokyo, there are more than 1,000 new cases of COVIDー19 diagnosed every day. No one can predict when this situation will end and at this time Japan financial representatives are discussing a new round of monetary easing.
On Jan 11, the price of BTC dropped from $40,000 to nearly $30,000.
At that time, Thomas Barkin, chair of the Richmond Fed’s mentioned deflation for the first time in his speech. Then the US10Y and DXY rebounded higher that day, resulting in risky assets such as gold and silver experienced the same price drop as BTC.
Although Barkin’s speech did not allow DXY to rebound and most countries are still maintaining monetary easing, the market response this time also reminded investors that if monetary easing policy stops one day, will the price of those stocks that rise due to the policy fall as a result?
Perhaps, for Kenichi Watarishinn, he is not worried about this happening, cause what he does is to focus on paradigm deflation for a long time in this magical world which is Mimosa’s long-term goal.
However, long-term deflation will also bring many concerns. For example, continued price growth will make assets that should be used for value exchange eventually become collections with high market value but small market. With questions in mind, we talked with Mimosa’s founder, Kenichi Watarishinn.
1. Many people regard gold and BTC as good targets for fighting deflation. So why release Mimosa?
Kenichi Watarishinn：Both gold and BTC have strong hedging properties and even for assets like BTC, the more mining, the smaller circulation. But gold holders are the government and banks. If one day they start to reduce the rate of gold holdings, or they unearth more hidden gold mines, it will have a more obvious impact on gold prices. Although the price of London gold is currently fluctuating around $1850 which is not very dramatic, participants in its derivatives market attach great importance to these performances.
The current total supply of BTC is 21 million. As time goes by, the amount of BTC to be released will decrease and the difficulty of mining will increase every once in a while. But the current overall situation is still in a state of inflation relative to the scale of circulation. This phenomenon will not be regarded as the end in a true sense until all BTC are mined.
Therefore, based on the situation of gold and BTC, we designed a long-term deflation model of Mimosa to ensure the scale of asset circulation each quarter. Compared with the previous quarter, there will be a decrease and finally achieve the purpose of long-term value-added and value storage. At this point, you can refer to Yearn.Finance’s YFI and Mimosa is even more interesting than its design.
2. In the current market, many large holders will hoard assets in the early stage and sell them at a high price in the later stage which will have a great impact on the market. How does Mimosa prevent large holders from selling MIMO in the later stage?
Kenichi Watarishinn：Mimosa wrote a fixed on-chain transfer and destruction mechanism in the smart contract when the protocol was created. If participants who previously held MIMO wanted to sell, they need to destroy 5% of the transfer amount. Think about it, if large holders who accidentally obtained a lot of MIMO early through arbitrage wants to sell 100,000 MIMO to the market, then needs to be forced to destroy 5,000 MIMO assets first.
Of course, we will use scientific distribution in the early stage to prevent such large holders from appearing, because the circulation of MIMO is unlikely to exceed 800,000 in the next year.
3. Currently, there is no MIMO in circulation on the market. In what form will you release MIMO?
Kenichi Watarishinn：The popular way of DeFi projects on the market is to deploy mining pools on the chain to invite LPs to participate. In fact, this mechanism has some benefits. For example, the investors themselves have issued tokens and the project team has to open a mining pool for the investors tokens to achieve the purpose of manipulating the market and make the investors convenient to participate as the first mining people.
Therefore, Mimosa plans to implement the dual mode of sell（the transaction price is the purchase price） + on-chain mining pool and will decide whether to continue one of the parties according to the participation situation. For the specific mechanism, you can stay tuned for our following announcement.
4. MIMO currently does not have any IEO or pre-investors. What does the team rely on to operate the project?
Kenichi Watarishinn：Mimosa’s predecessor is the Tokyo Economic Practitioners Research Association. It has been in operation for more than a year. Some members of this association are executives in the fields of banks and
brokerages. The association has obtained maintenance income through the financial knowledge training in the early stage.
In the foreseeable future, even if Mimosa enters the ecological development stage, all expenditures can be covered by the budget. For example, Uniswap has only several hundred thousand dollars in start-up funds.
The Mimosa team has actually met several intentional institutions before, but these institutions are utilitarian and there are also some product design requirements, which will seriously affect our following development. So Mimosa ultimately did not accept any private IEO and Investors participate.
5. Recently, several Japanese projects have performed well in the market. What do you think of this phenomenon?
Kenichi Watarishinn：Japanese crypto projects are not the same as those in western. They do not rely on the endorsements of investment institutions as early drivers. I have been researching the crypto field for 3 years and I am well aware of some good projects going downhill after accepting investment in the early stage. Therefore, investing and doing it by yourself is a more suitable way for long-term development.
6. If I have MIMO, what can i do with it?
Kenichi Watarishinn：Currently in the Mimosa v1 plan, MIMO can be used for collection or redemption. We will periodically reclaim MIMO from holders through market and then help them participate in the v2 plan. It is estimated that the v1 period will be in within 3 months to half a year after MIMO online, v2 will expand even longer.
Staking mechanism. MIMO can be obtained in the future by staking MIMO and the rate of return will be dynamically adjusted with the speed of MIMO destruction. For example, if 7% of the total supply is destroyed this month, the MIMO obtained by pledge will be carried out at half of that ratio, that is, a monthly return rate of 3.5%. This mechanism only supports the v1 period and will be cancelled after v2 goes online.
7. How hot is Mimosa’s community currently?
Kenichi Watarishinn：Mimosa did a cold-start at the beginning but with local media reports, the current community groups are relatively diverse which may also be related to the fact that there are not many people who know DeFi in Japan. At present, the community has members from Europe, USA and China. We will also provide instructions services in different languages based on the popularity of the community.
8. What is the estimated speed of MIMO destruction?
Kenichi Watarishinn：We plan to maintain the circulation of 800,000 within one year after the official circulation of MIMO. If the market buyer reduces the asset too much, it’s possible that we will reduce the on-chain transfer and destruction rate. During this period, there will be a total of v1 and v2. The MIMO applicable scenarios for each process are also different and the final destruction speed depends on the market.
9. If I plan to hold MIMO for a long time, how can I ensure its safety?
Kenichi Watarishinn：Mimosa is built based on the mature Ethereum blockchain. Before the smart contract was released, two audit teams were found to review and optimize. The MIMO protocol is already the second version now. We have added a lot of parameters to ensure asset security and at the same time it will be more friendly to DeFi scene access. The well-known audit agency Beosin audited the Mimosa smart contract after it went online in December last year. The storage of MIMO will be very secure.
10. Are there any plans to list MIMO on exchanges?
Kenichi Watarishinn：Currently, we are already connecting with Japanese exchanges. At the same time, we are also promoting the listing of MIMO on exchanges in western and China. According to the current market, we may do it after the Lunar New Year. After all, there are many followers in communities come from South Korea and China.