Mesh Protocol

Airdrops are cool until the 'negative debt' they create starts to weigh on the token's value. The answer: deflationary airdrops? 🤯 An airdrop, though a generous initial gesture, can create an economic conundrum for new projects. When tokens are distributed freely, their market value, established at launch, represents a kind of negative debt. This debt is not financial but conceptual, as the value distributed to airdrop recipients is expected to generate returns in user engagement and network growth. However, it poses a risk: if airdrop recipients decide to cash out, they effectively rely on the capital of new buyers to realize their gains. This situation can put downward pressure on the token price and shake the confidence of new investors. I've watched many projects distribute airdrops, like @JupiterExchange, and across various chains on @cosmos and L2s; the story remains the same. I still remember my first airdrop, which was @AmpleforthOrg. At @Mesh_Protocol, we've turned this paradigm on its head with $oMesh, which is both airdropped and used as a reward token in Mesh's ecosystem. It allows its holders to buy into the protocol at a discount. This concept draws from the 'Foo tokenomics' introduced by @timeless_fi, where option tokens are rewarded, allowing the purchase of their tokens at a discount. However, this creates inflation as the discount is offered in the same token. (There is a lot more to this, I suggest reading the article linked below) We simplified and took it a lot further. $oMesh is also an options token, but instead of offering a discount in $Mesh tokens, we offer it in a separate, independent asset named $indexMesh. But what do I mean by deflationary airdrops, you ask? $oMesh recipients must actively contribute capital ($SOL) to the ecosystem to unlock their value ($oMesh converted to equivalent $Mesh and additional $indexMesh using $SOL). Exercising $oMesh also does not have any adverse effect on $Mesh. Instead, this capital inflow is used for buybacks and strengthening $Mesh liquidity, making the $oMesh mechanism deflationary for $Mesh. Our model is crafted to sidestep the pitfalls of conventional airdrops and inflationary reward mechanisms, fostering a healthier token economy and bolstering investor confidence from day one. #SOL Read More: meshprotocol.medium.com/defl… blog.timelessfi.com/posts/fo…