$MCBASE: A Delicious Inflation-Pegged Memecoin
McBase is the first ever inflation-pegged memecoin.
Many attempts have been made to provide crypto with a source of liquidity tied to ever-changing inflation metrics (notably projects such as Frax Finance’s FPIS).
Whilst such projects are revolutionary and should be respected as such, they suffer from being too complex for the average market participant to comprehend and engage with.
That’s where $MCBASE comes in.
The McBase protocol constitutes a new crypto asset pegged to the price of one of the world’s premier consumer products, the Big Mac.
- When the price of $MCBASE is higher than the target, the number of MCBASE’s tokens in user wallets automatically increases.
- When the price of $MCBASE is lower than the target, the number of MCBASE’s tokens in user wallets automatically decreases.
Why a Big Mac?
McBase leverages the ‘Big Mac Index’, a measure invented by The Economist in 1986 as a lighthearted means of evaluating the relative spending parity of fiat currencies.
“[The Big Mac Index] it is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries.
Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of dozens of academic studies.”
By applying this to cryptocurrencies, anyone can pair their desired token against McBase to gain an immediate understanding of the real-world spending power of any cryptocurrency in a manner that is both fun and simple for anyone to understand.
Lowering The Barrier For DeFi Adoption
A key barrier to DeFi adoption — and of cryptocurrencies generally — is an inability for individuals to evaluate the real purchasing power of a particular asset at a given point in time.
For example, Dogecoin experienced a wave of popular support in the last bull cycle and found its place in thousands of new digital wallets.
However, if you were to ask the average retail investor to describe the value of Dogecoin — the response would invariably be simply “not much”.
This is an issue inherent across all fractionalised cryptocurrencies. To the average user, the price of “Dogecoin” will always be ‘not much’. The issue, however, is that this paints a disingenuous picture of the real purchasing power of Dogecoin over time.
McBase solves this by providing a tangible comparative standard, e.g.:
If on 1 March 2021:
- A Big Mac was valued at $5.66.
- Dogecoin was valued at $0.0812168173339073.
The $MCBASE/DOGE ratio would (5.66/0.0812168173339073) = 69.69. Or to frame it another way, a BigMac costs 69.69 Dogecoin (nice).
However, if a year later on 1 March 2022:
- A Big Mac is now valued at $5.80.
- Dogecoin is now valued at $0.1624336346678146
The $MCBASE/DOGE ratio would now stand at (5.80/0.1624336346678146) = 35.70. Therefore, a Big Mac now only costs 35.70 Dogecoin.
As we can see, the Big Mac Index provides a simple and accessible means of assessing the relative inflation-weighted purchasing power of Dogecoin over time.
$MCBASE Technical Details
The $MCBASE token achieves its price peg to a Big Mac (currently $5.15) through a “rebase” mechanism which increases or decreases the total supply based on the delta from its peg price.
This rebase event occurs twice a day (every 12 hours).
When the 12-hour TWAP (time-weighted average price) of $MCBASE is over $5.15, it’s in an expansion phase and the total supply will increase. This means every token holder will automatically gain more tokens in their wallet. This increase in supply causes the price of $MCBASE to decrease to get closer to peg.
Conversely, when the 12-hour TWAP of $MCBASE is under $5.15 it’s in a contraction phase, and the total supply will shrink. Every holder will lose tokens in their wallet. This decrease in supply causes the price of $MCBASE to increase to get closer to peg.
Intuitively, most holders will prefer expansion cycles over contraction cycles. However, it’s important to note that since everyone’s holdings will increase or decrease the same percentage during a rebase, your share of the total market cap remains the same through both cycles.
Also, there is a “rebase lag” constant to smooth out supply increases/decreases over multiple epochs, so there is less of a “shock” to the system. The starting rebase lag is 5, meaning if the price increases by 20% from peg, the expansion will be 4% (20/5).
- Current $MCBASE Peg Price: $5.15
- Epoch length: 12 hours
- Starting rebase lag: 5
The rebase function is a public function that can be called by anyone once every 12 hours. Since this requires gas, anyone who calls the function will receive 5 $MCBASE as a reward for spending the gas.
What’s Next on the Menu?
1. ShareBox — Fair Distribution
As with any pegged currency, algorithmic or otherwise, the long-term validity of McBase’s core function is only valid for so long as there is sufficient liquidity to support the contractions/expansions required to bring McBase’s price back to the current peg.
Initial $MCBASE has been bootstrapped in return for 7% of the $MCBASE supply.
However, the majority of the liquid $MCBASE supply will be distributed to early adopters via an initial liquidity bootstrapping programme.
This liquidity bootstrapping event will be called the ShareBox and will reward liquidity providers with $MCBASE reward tokens with multiplier bonuses.
Stay tuned for more details on the Sharebox shortly after launch.
2. Drive Thru — Physical Redemption
In the same way that USD stablecoins are backed by physical dollars, $MCBASE will ultimately be backed by physical burgers.
Holders will soon be able to order physical Big Macs via the McBase Drive Thru.
More details coming soon.
Do We Recognise You From Somewhere?
McBase was originally launched in 2021 on Binance Smart Chain. Despite achieving multi-millions in TVL, the original project did not include a tax on token transfers, meaning the protocol was unable to create a lasting liquidity and marketing flywheel.
$MCBASE is now set for a fresh relaunch with these technical adjustments made. Transfers of $MCBASE will have a 5% tax on both buys and sells, with 2.5% automatically directed towards bootstrapping liquidity and 2.5% allocated towards future ecosystem development.
This, together with a home on Ethereum mainnet, puts McBase in a prime position to achieve the goals that the project originally set out to achieve.
Despite the above improvements, $MCBASE remains an experimental memecoin protocol with no underlying fundamental financial value. You must conduct your own due diligence before engaging with the protocol in any way.
$MCBASE Tokenomics
- Total Supply: 3,000 MCBASE
- Initial Liquidity: 1,750 MCBASE / 5 ETH (58%)
- Geyser Rewards: 950 MCBASE (32%)
- Early LP providers: 200 MCBASE (7%)
- Marketing and Community Development: 100 MCBASE (3%)
$MCBASE Links
🌐 Website: https://mcbase.finance/
📱 Telegram: https://t.me/McBasePortal
🐦 Twitter: https://twitter.com/Mcbase_Finance
📚 Medium: https://medium.com/@mcbase-finance
📈 DexScreener: https://dexscreener.com/ethereum/0xC39C02266aAcad9b1FF9c832c4Ee3F6F79DcC780
🍟 Contract Address: 0x43a9C989597eFeAdf11Faec609Ad8df7d3C18cDb
