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On this page
  • Introduction
  • What is a DOSC?
  • What makes DOSC a good peg target?
  • Participating in Melmint
  • Contribute CPU measurements
  • Make arbitrage trades
  • Further Reading
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  1. Developer guides
  2. Getting tokens

Melmint overview

This is a brief, high-level introduction to Melmint.

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Last updated 1 year ago

The wiki has a .

Introduction

Melmint is the our key mechanism for stabilizing MEL, Mel's base currency. MEL avoids the volatile price of traditional cryptocurrencies like BTC and ETH, making it a much better store of value and unit of account.

But, unlike "stablecoins", MEL does not rely on any external trust in fiat assets or oracles. Instead, Melmint is an oracle-free system that keeps the value of 1 MEL around 1 DOSC.

What is a DOSC?

A “DOSC” is a “day of sequential computation”. It’s defined as the cost of running a sequential computation for 24 hours, using the fastest processor available.

For example, a DOSC in the year 2000 is the cost of occupying the fastest single CPU core available in 2000 for 24 hours, while a DOSC in the year 2021 is the cost of doing the same with a 2021 processor.

What makes DOSC a good peg target?

  • It has a relatively stable purchasing power. Empirically, the “fastest processor” typically costs about the same, despite its performance drastically increasing over time. We explore this further in our . There are also deeper a priori reasons why .

  • More importantly, it can be measured through a sequential proof-of-work on-chain by an autonomous mechanism with full endogenous trust. No oracle needs to be trusted to tell us how much a DOSC is.

Participating in Melmint

Contribute CPU measurements

To participate in Melmint, you can instance of melminter, a convenient CLI that turns CPU computation into MEL.

Though it turns computation into money, melminter is not a "miner" and does not help secure the network. Instead, it bids for MEL __ using _computation_, contributing information about the current price of computation to the network. This then drives the Melmint mechanism to keep the 1 MEL = 1 DOSC peg.

Make arbitrage trades

Further Reading

Melmint's stability depends on a community of traders profiting from arbitrage between the MEL/SYM, ERG/SYM, and ERG/MEL Melswap pools. Learn more in the !

This was just a quick overview of Melmint. The complete guide on how MEL is stabilized, along with what happens under the hood, can be found in the conceptual documentation.

🪙
more in-depth discussion of MEL and Melmint
DOSC analysis data
processor time is a good long-term measure of value
run your own
article on Melmint arbitrage
here