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Mina Coin, a popular altcoin among Turkish cryptocurrency enthusiasts, has released a long-anticipated report. Following a radical overhaul of its management structure about a month ago, the platform initiated an Ask Me Anything (AMA) session. The report, spanning 69 pages, provides valuable insights into its strategic roadmap.
Key Insights from the Mina Coin Report
The price of Mina has fallen below $0.20, losing its pre-sale level of $0.25. The recently published token economics report details essential metrics including token supply, inflation, user participation, and protocol revenues. The report highlights that token inflation is alarmingly high at 9%, which is set to decrease to 12% with updates scheduled for June 2024.
Since early October 2024, the number of validators has dropped by 50%, indicating a weakening delegation program. The lack of deflationary mechanisms and the absence of fees at the protocol level are noted as significant barriers to growth. Furthermore, the report compares Mina to other platforms like Cardano 
$0.720531 and Algorand, emphasizing that all except Mina generate protocol revenues.
The Future of Mina Coin
Identifying network issues lays the groundwork for future steps. Key challenges include inflation-related risks, lack of protocol fees, and slow development due to missing treasury structures. The report suggests that gradually lowering inflation rates could stabilize token value and reduce selling pressure.
Strategies to generate sustainable revenue through low protocol fees and a decentralized treasury are recommended, alongside suggestions for token burn initiatives to support the ecosystem’s growth. The lack of a treasury structure poses a significant challenge for Mina, which must address these hurdles to improve its economic model.
The audit report’s fee distribution details reveal that Mina is the only layer 1 protocol without protocol fees, setting it apart from others like Cardano and NEAR, which have established fee-sharing mechanisms. This lack of fees raises concerns about the protocol’s sustainability and income-generating capabilities.
Mina’s low hardware requirements and lack of stake locking foster high participation rates compared to other layer 1 platforms. Meanwhile, generous staking rewards promote active involvement, while zkApps hold potential for increased demand and transaction volume as the ecosystem matures.
Conversely, the absence of a protocol fee and token burns constrains the ability to raise funds for ecosystem development. Additionally, the weak user activity and reliance on token inflation instead of transactions for block rewards underline the urgent need for application deployment and user engagement.
Summary of Key Recommendations
Currently, Mina is facing significant challenges, including 9% annual inflation, no protocol fees, and weak revenue streams. The report outlines actionable recommendations to strengthen Mina’s tokenomics, including reducing inflation and introducing protocol fees. This audit serves as a community-driven resource for future improvements, potentially positioning Mina as a pivotal execution layer for zk technologies.
