Mark your calendars for January 29th, 2024 – the much-anticipated Mintlayer mainnet launch is happening! This is the culmination of years of dedicated effort by our team comprised of the industry’s finest engineers, cryptographers, and researchers. A huge thanks to our full team for their tireless work and long hours that have led to this moment. This launch not only represents a significant milestone in blockchain technology but also heralds a new era for Mintlayer.
Marking a pivotal moment in blockchain history, Mintlayer will initiate its journey with the creation of its genesis block on January 29th, 2024. Mirroring the iconic genesis block of Bitcoin, this foundational block, numbered 0, will be a permanent and defining feature of the system. Concurrently, Mintlayer will commence the gradual transition of its token from the Ethereum network to its native environment on the Mintlayer mainnet, with detailed plans to be disclosed subsequently.
Mintlayer draws inspiration from Bitcoin, prioritizing security, simplicity and reliability over rapid block generation or high transaction throughput. Distinctly, Mintlayer introduces two key features unfamiliar to many in the current DeFi landscape:
- Utilization of a UTXO (Unspent Transaction Output) model akin to Bitcoin, enhancing transaction composition flexibility.
- Integration of hardcoded smart contracts, identifiable as specific output types.
Emphasizing security and reliability as cornerstones for our future-proof financial infrastructure, significant resources were invested in designing a robust architecture and conducting extensive testing. The choice of Rust for node development epitomizes our commitment to speed and security. Renowned for its efficiency and safety, Rust excels in enabling reliable software through its unique borrowing system, eschewing the need for a garbage collector and guaranteeing thread safety. Its compiler is instrumental in promoting best programming practices.
Staking in Mintlayer: A Blend of Proof-of-Stake and Proof-of-Work
Mintlayer’s innovative consensus system marries the principles of proof-of-stake with certain aspects of proof-of-work. In this hybrid system, block signers engage in a process akin to ‘guessing’ a block, similar to mining. However, the primary variable they can alter to achieve this is the timestamp. Given the chain’s approximate two-minute timing, the number of guesses is relatively limited—about 180 guesses in the time frame where Bitcoin’s proof-of-work system would make 90 billion guesses. This significant reduction in computational demands means that even a Raspberry PI, a low-cost, low-power mini-computer consuming between 1 and 5 Watts, can efficiently run a Mintlayer node. This accessibility allows almost anyone to run a node enabling broader participation in running staking pools, thereby enhancing network security.
The ML Token: The Driving Force of Mintlayer
At the heart of Mintlayer’s innovative ecosystem lies the ML Token, a vital component that fuels the network’s operations. Its circulation within the system and inherent economic value are pivotal, as they ensure participants are incentivized to adhere to the network’s protocols. The fundamental role of the ML Token is to power Mintlayer’s engine through its proof-of-stake mechanism.
Engaging in the mainnet staking pool with the ML Token goes beyond mere participation. It allows stakeholders to actively contribute to the network’s security and integrity. By validating the network’s transaction history and generating blocks, participants play a critical role in maintaining the ecosystem’s functionality. In return for their contribution, stakers are rewarded with both the block rewards and the transaction fees collected. This not only incentivizes participation but also aligns individual interests with the network’s overall health and sustainability.
The ML Token Supply
The pre-mined supply for ML tokens is set at 400 million. Following the launch of the protocol, each new block will contribute additional ML tokens to the system. In the first year, 202 tokens are generated per block. This number decreases in the following years to 151, 113, 85, 64, 48, 36, 27, 20, and finally 15, before it drops to zero after 10 years. This gradual reduction will result in approximately 200 million additional tokens. Beyond this decade, staking operations will rely solely on transaction fees for sustenance.
Simultaneously, specific operations within the network will trigger the burning of ML tokens, effectively reducing the total supply. For example, issuing an MLS01 token incurs a cost of 100 ML plus standard transaction fees, with these 100 ML tokens being irrevocably burned. Consequently, the total supply of ML tokens is projected never to reach the initial estimate of 600 million, leading to a deflationary supply after the first 10 years.
Developing on Mintlayer: A Gateway to Diverse Tokenization
As Mintlayer debuts, it brings forth the ability to create both fungible (MLS01) and non-fungible tokens (MLS03), each boasting customizable metadata. Particularly for fungible tokens, issuers are granted the options to manage supply and even freeze tokens, if needed, this is possible without the need of coding. Tokenization on Mintlayer is a built-in feature; this level of control and flexibility makes Mintlayer an optimal platform for tokenizing a wide array of real-world assets. From fractionalized real estate and financial instruments like bonds, funds, stocks, and derivatives to tangible assets like precious metals and art, Mintlayer’s blockchain is adept at handling these complex applications.
Looking towards the future, Mintlayer is poised for significant functional enhancements. A key development on the horizon is the Hashed Time Lock Contract (HTLC) output that will help to lay the foundation for Atomic Swaps. This feature is set to revolutionize the platform by enabling the creation of decentralized exchanges (DEXs) and facilitating the integration of layer-2 solutions, including the Lightning Network. These strides are indicative of Mintlayer’s unwavering commitment to building a versatile and regulation-compliant blockchain ecosystem. Additionally, our team is diligently working on an exciting, groundbreaking development that we look forward to disclosing soon, promising to further innovate the Bitcoin space.
Embracing the Future: Mintlayer’s Path Forward
As Mintlayer embarks on this transformative journey with the launch of its mainnet, we are invigorated to redefine the landscape of blockchain technology. Our team, a blend of seasoned experts and innovative minds, is committed to continuously advancing Mintlayer’s capabilities and ensuring its alignment with the evolving needs of our community and the broader blockchain ecosystem.
Delve deeper into the technicalities and functionalities of Mintlayer by exploring our extensive documentation. This resource is designed to guide users, developers, and enthusiasts through the intricacies of Mintlayer, offering a thorough understanding of its underlying technology and applications.
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In closing, we extend our heartfelt gratitude to everyone who has supported and believed in Mintlayer. Your trust and enthusiasm fuel our commitment to delivering a state-of-the-art blockchain platform. We eagerly look forward to shaping a more connected and decentralized future together.