*obligatory not financial advice*
What is Algomint?
A bridge is a great tool that allows its users to send the digital assets of one blockchain to a smart contract, that will then mint wrapped tokens on the destination blockchain and you can have your wrapped tokens burned to receive your "real" tokens back, meaning that the minted wrapped tokens are fully backed and have the same value as their real counterpart. This makes the connected chains interoperable, which lets them profit from each other because they can share their liquidity and applications.
Algomint is such a bridge that allows its users to bring their cryptocurrencies from other blockchains to the Algorand network. This brings more liquidity and utility to the Algorand blockchain and allows ETH and BTC holders to participate in DeFi while taking advantage of the low fees and high speed of Algorand.
The bridge is currently absolutely centralized and even requires KYC. Also you can only use it to bring your BTC and ETH coins to Algorand in the form of goBTC and goETH tokens. But it will grow to be a proper DAO and a decentralized application soon once the governance token goMINT is distributed enough and also many other blockchains like Near Protocol, Cardano and Solana will be supported.
Although it will still take quite a while until the project achieves some decentralization and adds support for many more tokens, it is already well established within dApps on Algorand. The Tinyman DEX allows its users to trade with goBTC and goETH and the wrapped tokens can also be used for lending or as collateral on AlgoFi.
Even the Algorand Foundation is acknowledging that Algomint strongly improves Algorand, that’s why it’s mentioned in their Aeneas Liquidity program that distributes ALGO rewards to DeFi users. Soon it could happen that liquidity providers of go-token pairs on Tinyman could stake their LP tokens for ALGO coins.
As DeFi keeps growing on Algorand and the platform becomes more decentralized, it could grow to be very powerful and valuable and so could its token.
The goMINT token
Once Algomint becomes a DAO, it will use goMINT as its governance token. The holders will be able to propose updates and vote on these proposals. They will also earn a share of the platform fees if they stake their tokens. The holders will have to lock up their goMINT to participate in governance and earn rewards. They will be able to stake goMINT for between 1 month and 36 months and how much weight their vote has and how much they earn will depend on how long they lock their tokens.
There is a max supply of 1 billion and it will be fully distributed over the next 5 to 8 years. 21.5% are sold to investors in various different sales, 5% went to advisors and early partners, 25% are going to the founders and team members and 48.5% are going to a treasury that will be used for incentives and rewards, but also for partnerships and grants. The tokens of the investors, advisors and founders are being vested for 3 years and the treasury will distribute tokens over up to 8 years.
Almost half of the supply could go to the users of the bridge or holders of the wrapped tokens, but the founders are also able to use the treasury for additional funding or partnerships, which is very unfortunate, however to be fair actually running a node for a bridge isn't as easy as just supplying liquidity to a DEX, so it makes sense that most of the supply would be going to the actual supporters of the future DAO. But this is still a risk.
The value of the token depends on how many people use Algomint and on how much money is held in its smart contracts. Right now it is very limited in its utility, since it only supports BTC and ETH and it is absolutely centralized since the founders have complete control of the platform and it even demands KYC of its users. But the bridge will hopefully move to decentralization within the near future and expand its services by adding support to more blockchains. If more DeFi applications keep launching on Algorand, then there will be an increasing demand to bridge other cryptocurrencies there to use the low fees and high fees of Algorand and Algomint could gain much more importance. However, the supply of the goMINT token is strongly in control of the founders.
The goMINT token is not listed on any centralized exchange, but you can buy it on Tinyman or the AlgoFi DEX if you have some ALGO. You can use a My Algo Wallet to store your tokens and interact with dApps on Algorand.
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