# Using melminter

## Installation and Setup

Ensure that you have an up-to-date version of `melminter` installed:

```shell-session
cargo install --locked melminter
```

You will need:

* A small amount of MEL in your wallet (see setup instructions [here](https://docs.melproject.org/developer-guides/using-wallets/getting-started)). This is because Melmint transactions are required to pay transaction fees, just like every other transaction.

{% hint style="info" %}
If you simply want to try this out on the testnet, you can acquire testnet MEL yourself via a faucet transaction, as shown [here](https://docs.melproject.org/using-wallets/getting-started#fund-wallet).

If you wish to participate in mainnet melminting, please ask for some MEL in the #mel channel of our [Discord server](https://discord.com/invite/qfg35paESn).
{% endhint %}

## Running melminter

```shell-session
melminter --payout <payout-wallet-address>
```

The first time you run `melminter`, it will ask you to send a particular address a small amount of MEL in order to start. This is so that it can pay initial transaction fees. Send that money, and after around 30 seconds you'll see a nice TUI show up:

<figure><img src="https://2733178711-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfyfIKQnkuheUwyaEXngm%2Fuploads%2FZD5SiLgP4LVBsNDeTe09%2Fimage.png?alt=media&#x26;token=14dd9aac-a9c6-447a-85a9-f1d895826333" alt=""><figcaption></figcaption></figure>

Running `melminter` will generate ERG, a temporary token representing computation, and immediately exchange it for MEL. Note the *daily return* line in the terminal output, which predicts how much computational work (in DOSC) the minter will do in 24 hours, as well as how much MEL that will buy.

## Caveats

Bidding for MEL with computation is not always profitable. Because of the mechanics of Melmint, **minting is very unlikely to be profitable** unless you either have a top-of-the-line CPU and cheap electricity, or Melmint is off-peg. This is because Melmint is not a proof-of-work consensus system, but rather a *pegging arbitrage* system that is only really used to restore the MEL/DOSC .

Transient volatility in the MEL/ERG exchange rate may also affect profitability.

`melminter` makes no attempt at guessing whether or not minting is profitable.