The utility of the Minima network and currency will be a key driver influencing the value of the Minima currency.
The Minima coin is required to use the network in a purposeful way; the main drivers of utility for the Minima coin are:
- A Store of Value
- Value transfer
- The Burn
- MiniDapp usage
- Third party partnerships & integrations
A Store of Value
The Minima coin can be used as a store of wealth over time. Unlike traditional Fiat monetary systems, the Minima coin supply cannot be inflated. In fact, due to the Burn mechanism (see The Burn), the supply is deflationary, meaning it slowly becomes more scarce over time. Coupled with Proof-of-Work backed security provided by every node in the network, and no centralized authority, the Minima coin can be considered a secure store of value.
Medium of Exchange
The Minima currency will be the primary medium of exchange on the network. All users (or devices) running nodes are able to transact directly, peer-to-peer, wherever, whenever.
The Burn is a small cost (fee) which is incurred when sending transactions on the Minima network during times of high demand. This cost, denominated in Minima, is ‘burned’ i.e. removed from Minima's hard-capped supply. This makes Minima a deflationary currency as the overall circulating supply slowly decreases over time. Providing demand stays the same, a deflationary currency will appreciate in value over time.
For more information, see The Burn, in our Learn section.
Tokenization (including NFTs)
Minima will be required to create custom tokens or NFTs on the Minima blockchain. Custom tokens and NFTs inherit the same underlying security of the Minima blockchain and can be transacted with in the same way as Minima coins. Use cases for custom tokens and NFTs are unlimited and defined by the creator.
For more information, see Coloured Coins, in our Learn section.
MiniDapps (Decentralized applications)
Potential uses for the Minima currency in the MiniDapp ecosystem are unlimited and will depend on the applications built by community developers but could include:
Payments: using Minima as payment for goods and services
DeFi (Decentralized finance): Borrowing, lending, and using Minima as collateral
DEXs (Decentralized Exchanges): Exchanging Minima/Custom Tokens/NFTs within the Minima network or cross chain
DAOs: Using Minima/Custom Tokens/NFTs within the ecosystem of Decentralized Autonomous Organizations (DAOs)
Gaming: Using Minima/Custom Tokens/NFTs for in-game items or currency
Voting: Using Minima/Custom Tokens/NFTs to represent votes
Funding: Using Minima for charity or business funding
Social Media: Using Minima/Custom Tokens/NFTs for micro-payments or social status
For more information, see MiniDapps, in our Learn section.
Partnerships with existing businesses integrating Minima into their business offerings will increase credibility and demand for the Minima network and the Minima currency.
Current pending partnerships include companies in the following industries:
- Vehicle to vehicle communication
- File-sharing platform