$MINA /Mina Protocol — Milky FA Report
Version 1 May 8th 2022
Coin Ticker/Project:
$MINA / Mina Protocol
Date of Report:
May 7th 2022
Version 1
Introduction / Concept:
Quotation from the whitepaper:
“Mina is the first cryptocurrency protocol with a succinct blockchain. Current cryptocurrencies like Bitcoin and Ethereum store hundreds of gigabytes of data, and as time goes on, their blockchains will only increase in size. With Mina however, no matter how much the usage grows, the blockchain always stays the same size — about 22kb1 (the size of a few tweets). This means participants can quickly sync and verify the network.
This breakthrough is made possible due to zk-SNARKs — a type of succinct cryptographic zero-knowledge proof. Each time a Mina node produces a new block, it also generates a SNARK proof verifying that the block was valid. All nodes can then store the small proof, as opposed to the entire chain. By not having to worry about block size, the Mina protocol enables a blockchain that is decentralized at scale.“
Network(s):
• Mina Mainnet — Contract: 5f704cc0c82e0ed70e873f0893d7e06f148524e3f0bdae2afb02e7819a0c24d1- https://minaexplorer.com/status
Smart Contract Security Audit:
Security audit was completed by Least Authority and the level of detail in their investigations impressed me. There are several issues highlighted by the team, some remained unresolved by the time of the audit was published, which was last year. The unresolved issues were due to be addressed later in line with other releases/updates. Due to this I think an updated audit is appropriate.
USPs (Unique Selling Points) / Key Points:
• PoS (Proof of Stake) Consensus Model
• Zero Knowledge for privacy and security, so developers can build zkApps (zero knowledge applications)
• Currently 156 Block Producers (Miners)
• Blockchain length 135,131 (the bigger the number, the better)
• Exceptional Roadmap
• End to End Data Privacy
• Permissionless Web Oracles
• One Private Internet Login
Team & Advisors:
The team is expansive which is encouraged by the open-source protocol. I’d recommend visiting https://minaprotocol.com/about and scrolling down to the team and contributor’s section.
The CEO Evan Shapiro is fully dox. By clicking on his profile via the above link his socials links are available. Based on the success of this protocol I’d say the team have been doing an excellent job.
Evan has a Masters in Computer Science and has been involved in blockchain technology since 2013. Evan’s LinkedIn: Evan Shapiro | LinkedIn
There’s no KYC Audit, but I don’t believe there’s any risk of a rugpull here, so it’s not required.
Partners &/or Venture Capital (VC) Investors:
The below images show the full list of the VCs and Ecosystem partners involved in supporting this protocol. Although the website hasn’t been updated to reflect this Mina have also partnered with Nil-Foundation who are building the zk-bridge.
Roadmap:
Based on the 2021 roadmap it’s clear this team works hard to achieve and maintain it’s targets. This should always be respected because quite frankly, sh*t happens, and teams who still achieve their targets on time show not only competence, but the ability to adapt to and overcome challenges. And the targets for the rest of the year are very exciting.
I’m very curious what 2023 will bring.
Tokenomics:
• $MINA is the native token of the network, used to pay miners (node validators) their rewards
• According to CMC there are 489 million $MINA currently in circulation
- There is no supply cap
- $MINA is an inflationary token
- 1 billion tokens minted at launch, more tokens can be minted in the future
- Circulating supply in year 1 of launch will release at a rate of 12%, each subsequent year will reduce this rate until it reaches the target zone of 7%
- It’s estimated it will take 8 years for the 1 billion supply to be fully distributed to node validators (miners) as rewards
- Unlocked accounts (it’s not made clear what they mean by this) will receive double $MINA rewards during the first 15 months from mainnet launch
- See the below images for the breakdown of the initial supply distribution:
- And see the below for the expected token distribution after 4 years
- I would strongly recommend reading this excellent document which goes into detail on the breakdown on the Tokenomics: https://minaprotocol.com/blog/mina-token-distribution-and-supply
Socials / Community Engagement:
• Twitter: https://twitter.com/MinaProtocol
- Joined May 2018 with 190k followers and very good community engagement to their tweets.
• Telegram: https://t.me/minaprotocol
- Almost 50k members.
• Discord: https://discord.com/invite/Vexf4ED
- Over 28k members. This appears to be an excellent source of information for anyone who’s interested in MINA, but not a vocal or active community that I can see.
• Reddit: https://reddit.com/r/MinaProtocol
- Just under 13k members. This community appears to be very active.
• YouTube: N/A
Useful Links / Information Sources:
• Medium: https://medium.com/@minaprotocol
- Not really used, instead they update via their blog
• Blog: https://minaprotocol.com/blog
• LinkedIn: https://www.linkedin.com/company/mina-foundation/
• Github: https://github.com/MinaProtocol/mina
- Mina Protocol are the second most active network in development in all of crypto at the moment as the Github updates show. Those who continue building in bear markets reap the rewards in bull markets.
• Blockchain Scanner: https://minaexplorer.com/
• Coinmarketcap (CMC): https://coinmarketcap.com/currencies/mina/
• Whitepaper: https://minaprotocol.com/docs
- This whitepaper is more akin to an instructional manual for use of the protocol rather than a whitepaper of the traditional sense.
• Economics Whitepaper: https://minaprotocol.com/wp-content/uploads/economicsWhitepaper.pdf
• Litepaper: N/A
• Website: https://minaprotocol.com/
- Community websites: The Mina Protocol Community Website (minacrypto.com)
- zkApp DIRECTORY — zkApps For Mina Protocol
Listed Exchanges to Buy (and compatible pairings):
• CEX (Centralised Exchange)
- Binance (USDT, BTC, TRY, BUSD)
- Coinbase (USD, USDT, EURO)
- Kraken (USD, EURO, XBT, GBP)
- Gate.io (USDT, BTC)
- OKX (USDT)
- And many more CEXs listed on CMC
• DEX (Decentralised Exchange)
- No DEX’s listed that I’ve found
Summary:
There’s very little to not like about this project. In their roadmap they’ll be launching staking services soon so retail investors can enjoy passive income streams, this has always been a weakness for PoW chains compared to their PoS cousins (for attracting small retail investment for liquidity supply).
This network clearly provides a solution which will attract many individuals and industries. Here’s the 3 key use cases showing the utility of the protocol:
1. E2E Data Privacy
2. Permissionless Web Oracles
3. One Private Internet Login
Whilst I can’t verify with certainty these are unique services to Mina, there’s no denying the remarkable concept, technology, the backers and the exemplary team they’ve onboarded. I can easily envision Government departments around the world seeking to utilise this technology as soon as they drag themselves out of the Stone Age.
To achieve 5*:
• Proof of growing adoption over the next 12 months
My Rating:
4* (out of 5)
FA Audit Result:
• Smart Contract Audit: Update Required
• KYC Audit: Not Required
• Fully Doxxed Team: Pass
• Team Skillset: Pass
• Concept provides Solution: Pass
• Tokenomics: Pass
• Roadmap: Pass
• CMC Listed: Pass
• Whitepaper Quality: Pass
Disclaimer:
1. All content contained within this report is merely an expression of my personal opinion and should never be interpreted as financial advice.
2. The primary purpose of the structure and content of my reports is intended as an educational tool to assist you as part of your own research methodology.
3. I am not a qualified Financial Advisor, nor am I member of any professional financial body.
4. I am not responsible for any financial/investment/trading decisions you make.
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