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What is Enzyme Finance(formerly Melon)?

What is Enzyme Finance(formerly Melon)?

Melon Protocol rebranded to Enzyme Finance following the announcement in mid-December 2020. There will be no token migration, and Enzyme will continue utilizing MLN tokens.

In a narrow perspective, fund investment is easy as long as investors have a substantial sum of money while fully trusting a fund management firm. Plus, the fund decision making administered by fund managers.

Moreover, investors’ funds will be in the custody of a third-party and exposed to fraudulent or suspicious activities.

What is Enzyme Finance?

Enzyme Finance is creating a solution for the traditional fund management problem. Conventionally, investors can invest in a fund managed by a fund manager.

Enzyme is trying to address the following parts in fund management;

  1. Safe and secure ecosystem for investors and fund managers
  2. Cost and time effective fund setup for managers
  3. Fund administration and transparency using smart contracts
  4. Fund retention for investors

How does it work?

It may be complicated to explain how it works in the technical aspects. As always in Techcryption, we are known to serve it sweet and simple.

Enzyme Finance is a protocol powered by Ethereum blockchain technology. By leveraging the smart contract capabilities, Enzyme Finance able to provide a decentralized asset management platform.

The Governance

Unlike most decentralized protocols, Enzyme Finance avoids utilizing vote-based governance. For elaboration on the decision, please read here.

It is called a Council with two major components, Melon Technical Council (MTC) and Melon Exposed Businesses (MEB). Each with members and representatives from different skill sets, expertise, and experiences.

Interestingly, the two components create a credible check-and-balance system.

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The MLN token

Melon (MLN) is a utility-type token created for the platform. If you love to understand the complex tokenomics behind it, please read more here. We are here to share the purposes and usages of the token.

The initial token supply for MLN is 1,002,000 tokens. The total supply will be burn, based on the correlations between different variables.

The MLN token serves the following functions;

  1. The asset management gas for Melon network
  2. Rewards and incentives

The function might change or expand depending on the approved decision by the Enzyme Council.

One of the main charms about this project is not on the token but the governance model it is trying to build and expand. Also, providing a fund management solution in a decentralized and professional manner.

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