Mese.io—a microequity exchange based on proof-of-stake blockchain Algorand (ALGO)—has launched a token dubbed MESX that tracks the performance of top tech stocks.
According to an announcement shared with Modern Consensus on Oct. 28, MESX “combines both exchange token and DeFi token economics creating an index ETF that tracks the performance of Microsoft, Apple, Tesla, Twitter, Amazon, Netflix and Google”—also known as the MATTANG stocks. The stocks backing the tokens will be held in the firm’s index fund.
MESX will launch with an ETF stock value pool of $10,000, equivalent to 10,000,000 MESX tokens. Consequently, each MESX token will represent 1/10,000,000 shares of the pool, and have a value of $0.001 per token.
The firm explained that it was inspired by the innovation it saw in the decentralized finance (DeFi) space, and decided to create MESX as a “sustainable DeFi product” on a centralized finance platform. Sinjin David Jung, managing director at Mese.io parent firm IBMR said:
“We are massive fans of the Uniswap model and we wanted to see if we could apply those innovations to a [centralized finance] platform… The beautiful thing about DeFi is that growth and value come from the process of participation in revenue sharing, this is at the heart of the decentralized network model.”
The users who hold MESX on the exchange receive staking rewards that are funded by 50% of all the Mese.io net transactional revenue. The staking rewards directly contribute to expanding the MESX stock pool and mints new tokens.
Jung also criticizes DeFi projects, stating that “sharing in revenue without actually creating revenue is problematic as many DeFi projects were solely dependent on secondary market speculative appreciation for a basis of value.” Still, he explained that in MESX’s case, staking rewards come from the exchange’s transactional revenue, which he hopes will be better for the ecosystem in the long run:
“We hope that this will be a sustainable DeFi model of value where MESX can also act as a long term microasset for emerging market participants.”
The growth through staking powered by Mese.io’s revenue share will continue until the number of MESX tokens in existence reaches 5 billion, with a stock pool value of about $11 million. After this supply cap is reached, 5% of the exchange’s revenue pool will be used to buy stocks for the pool indefinitely and governance features will be rolled out for the token.
As Modern Consensus reported at the end of September, Mese.io aims to bring the unbanked and the poor access to fractions of technology stocks. Jung explained:
“It isn’t about fractionalizing the current system, it is about creating new financial opportunities that work at the level of emerging markets where even a single dollar matters.”