FAQ

Minexcoin

Why should I buy MinexCoin?

First, MNC is a means of payment that makes online purchasing fast, safe and easy. Second, by parking MNC in MinexBank wallets, you may have your interest with no risk of losing your money. Third, predictable increase of MNC price enables you to earn from increase in the exchange rate.

What’s the difference between parking and regular depositing?

While depositing implies you give your assets to a third party like a bank, parking means only temporary suspension of the amount of coins designated by you in your wallet. In order to get interest from the parked coins, you undertake to withhold the coins for a certain period of time (from one day to one year). If need arises to use the suspended coins before the parking term ends, you still may spend it. In that case, you just won’t have your interest.

Is MNC a stablecoin?

Yes and no. MinexBank algorithm maintains the coin’s price within a precisely determined range to guarantee controllably low volatility. Still, MNC price is to grow by 33.6% a year until the issuance is over.

Why 33.6% a year?

Our economists researched the cryptocurrency market and found out that the cost of a portfolio composed of the most popular cryptoassets grows by 33.6% a year on average. A coin should grow fast enough to retain its competitive edge for long-term investors. By maintaining stable appreciation of the coin within a predictable range, MinexCoin combines the best features of classic crypto coins and so-called stablecoins, i.e. low volatility and steady growth. Additionally, considering the limited issuance and continuous expansion of the user base, this is the best way to increase a coin’s market cap.

Does the amount of 19 million MNC suffice to support a global payments system?

Monetary stock sufficiency for settlement operations depends on divisibility of each unit, not the overall supply of coins. Each MNC is divisible into 100,000,000 units. When MinexCoin reaches market cap of $1 trillion, there will be 1,900 trillion units in the circulation worth around 0.05 cents each.

Who controls MNC issuance?

Neither MinexBank nor the developers have control over MNC issuance. The procedure for issuance is stipulated in the coin’s code which cannot be altered, while the issuance itself is carried out by miners, similar to other cryptocurrencies. Block reward in Minex comprises 2.5 MNC. Therefore, MinexCoin is issued at the rate of 2.5 coins per 2 minutes (which is block time), i.e. 75 coins a day or 2,250 coins a month.

Why does the Bank want to take coins from the miners?

MinexBank is a nonprofit. The coins it gets from the reward for each solved block will be redistributed among the network participants in the form of reward for parking their coins at private wallets, and refill the bank’s reserve required for market interventions. Those deductions will not affect profitability of MinexCoin mining. The main characteristic of mining profitability is the cost of coins obtained by a miner. For instance, in ZCash, miners give away 20% to the developers, and yet Zcash mining remains quite profitable. In case of MNC mining, the coins the bank gets from the miners are distributed to the benefit of network members, not developers.

What does ‘hybrid governance’ mean? Is it a partially centralized system?

At the early phases of MinexBank, professional economists from the app development team will monitor the bank’s decisions. According to the classical monetary theory, cost of any currency depends on the currency’s circulation rate and market volume at the same period of time. As we cannot predict those two parameters and their change over time with absolute precision, bank governance will be hybrid. MinexBank’s reaction to market moves will be calculated by an algorithm on the basis of a preset formula, yet basic values could be amended manually in case of obvious malfunctions. Once a sufficient data array is collected, and the formula is fine-tuned, MinexBank will become totally autonomous.

Will MNC be used for voting to make decisions substantial for the project?

Yes, it will. However, as long as the system has hybrid governance, the algorithm may be changed without voting. Still, the voting mechanism will be broadly employed to make some decisions which are not related to objectively necessary changes.

The mechanism in question has in fact undergone testing during the voting for the platform governance model. Most MNC holders voted for hybrid governance at the early phases of the project.

If MinexBank is present only at a single ‘basic’ exchange, how do the prices at other exchanges correlate?

The bank doesn’t have to be present at all exchanges to stabilize the price. One is just enough. Traders stabilize prices at other exchanges themselves by applying arbitration strategy.

How do I buy MNC?

There are several ways to do that. During our ICO, the coin will be available at a minimum price. You also could buy MNC at any exchange that offers it. MNC trading will become available the day after completion of the ICO. Until then, off-exchange trading is available at the personal account.