The Melon protocol is a blockchain protocol for digital asset management on the Ethereum platform.
It enables participants to build, manage and invest in digital asset management strategies in open, competitive and decentralized ways.
The usage coin is called Melon coin (MLN) and is a core component of the Melon project.
It is designed to obtain a “right of use” to the Melon protocol. To use the Melon protocol, users must use the MLN coins.
This “usage fee” is most likely left to the trade of the coins.
Melon Coin – The Company
The Swiss company Melonport AG, which announced in November 2016 a project to create a fund for the management of digital assets on the Ethereum platform, completed the preliminary sale of coins on 15 February 2017.
The ICO that took place was the first; the second round will take place in the first or second quarter of 2018.
All funds collected during the two crowdfunding campaigns will be focused on the development of the Melon Protocol, which will last for two years.
The protocol is then used in Ethereum’s public blockchain.
Melonport AG is a private company founded in Zug, Switzerland in 2016 and owned by Mona El Isa and Reto Trinkler.
Melon, the protocol of asset management, is based on the blockchain of the Etherium network. The four primary functions of the protocol are:
Design of a hedge fund structure with a selection of smart contracts (core modules and external modules)
Management of digital assets according to predefined parameters determined by the user in the structure of the fund
Maintain a transparent history of operations with real-time audit capabilities without first editions and with a minimum of operational costs.
The possibility of investing in other funds, and vice versa, the option of investing in funds of other users.
Melon Coin – The Cryptocurrency
The MLN coin (Melon Coin) is an important part of Melon and offers a “right of use” of the Melon software.
In practice, a fee is applied to trading transactions and from an economic point of view it is similar to the Tobin tax, a tax on foreign exchange transactions.
High-frequency trading generates a high demand for Melon Coin. And on the contrary, an investor with a superior strategy of carrying out low-frequency operations has a disadvantage because he will pay a small tax.
A typical investor works with an average of these two strategies in his operations.
In any case, however, this is much cheaper than alternative solutions.
All coins paid by users for access to Melon are forwarded to one or more intelligent contracts, which are combined in the management fund.
Then the owners of the coins will determine the further measures with this fund by their right to vote.
During the two crowdfunding periods, a total of 1,250,000 melon coins are generated.
After Melon’s complete work list, periodically fixed quantities of new coins are generated for the distribution of the most frequently used modules among the developers.
Specific amounts of these subsequent issues will be determined at a later date.
As an analogy to these emissions, inflation can be seen in the block-chains with PoW or PoS, in which issued coins are used to motivate miners or validators.
Furthermore, each class of modules corresponds to the factor of complexity and the inflation coins are distributed among the developers of modules about the frequency of use and the factor of complexity.
The values of the complexity factor are determined by Melonport together with the control mechanism.
The value and importance of a wide range of digital assets have increased dramatically in recent years.
The question, therefore, arises as to how this new and fast-growing asset class can be managed most favourably.
This could be done by investing in a hedge fund that specializes in digital assets using the Melon Protocol.
You can’t buy it directly for fiat on any exchange. You can choose the best place to buy bitcoins for your region and buy BTC there, then trade it for MLN on exchanges. Learn here how you can instantly convert altcoins to bitcoin and vice versa.
Our recommendation is always check if Coinbase is available for your country and buy there – as it is by far the safest and best regulated bitcoin exchange. Coinbase is legit and secure place to buy BTC.
If your country is not available on Coinbase – check for exchanges that are good Coinbase alternatives (such as Cexio and Indacoin – see here Indacoin review) and buy BTC on one of those exchanges. You can always exchange your coins on Changelly (see if Changelly is safe and legit), instantly and directly to BTC.