What is Mintlayer?
Mintlayer is a Bitcoin sidechain dedicated to tokenization of assets, such as stock tokens and stablecoins. Your Mintlayer wallet is also a Bitcoin wallet and you can use it to trustless swap of BTC for any token created on Mintlayer, even through Lightning Network.
MLT is the governance token of the ecosystem: stake MLT to earn network fees, or spend them to create smart contracts and issue new tokenized assets.
Why have a native token?
From a technical standpoint, there are no other ways besides a token to envision a Bitcoin sidechain with dynamic participants in the network, which at the same time offers the right incentives to guarantee the security of the chain.
There are no other solutions in the market: a merged mining system like RSK is liable to drift towards an oligarchy of malicious players, while Liquid is a private sidechain (non-dynamic federates), and the peg-in model has noticeable security threats (the risk of a stall and the need of a back-up recovery key).
From a social perspective, the token serves different valuable purposes:
- Network effect: if the exchanges list the token, they are installing a node, so they become technically ready to receive all the tokens built on Mintlayer (such as Tether).
- Speculation brings more users. Statistically, at least some of them are beneficial to the network (running full nodes, contributing to the development, discussing fork updates, etc.).
Why should I do a KYC registration?
If you want MLT but do not want to go through the KYC process on launch.mintlayer platform, you can buy MLT after the Token Generation Event.