After my previous report on Moonlite (see the story here) a few readers asked for more information regarding MoonLite’s Profit sharing scheme.
Moonlite is an ICO that will exploit efficiencies at every step to maximize its large-scale cryptocurrency mining farms using new technologies and Artificial Intelligence (AI). The result will be maximized cryptocurrency mining profits through economy-of-scale. The efficiency will be from cheap electricity supplies, customized algorithms, Artificial Intelligence (AI) on its mining rigs, maintaining a suite of the fastest machines through regular upgrades and optimizing machine performance (eg. through rig cooling systems and regular machine maintenance). The collective improvements in efficiency will yield increased hash rates for its mining efforts.
Cryptocurrency mining by MoonLite will target Bitcoin (BTC) Ethereum (ETH), Litecoin (LTC), BitcoinCash (BCH), and DASH. Mining proceeds will be divided in a 60:20:20 ratio initially with potential for token voters to vote for changes to the ratio later on.
MoonLite’s Profit Sharing Set-up
Moonlite will position itself to be “highly liquid” as it mines cryptocurrencies allowing it to move quickly to take advantage of the newest innovations occurring in mining hardware upgrades. The development team will be able to adjust and exploit opportunities for new hardware or technology upgrades that may occur and improve mining outputs.
The maximized efficiency and nimble approach to implement the latest cryptomining innovations shows that MoonLite is serious about obtaining the highest cryptocurrency yields. This will result in success for the company and project over time.
In the future when coins it has targeted have been (nearly) fully mined the profits previously realized will be invested in other cryptocurrency ICOs, crypto-hedge funds, and other traditional investments (crypto stocks, other stock market investments). MoonLite reserves the right to exercise an ICO to IPO in the future to re-task its business from cryptocurrency mining (that will be exhausted after the coins are completely mined out) to managing its own crypto-fund. Long-term holders will be rewarded in both of MoonLite’s phases as tokens will be swapped for stock shares in the company.
MoonLite’s Profit Sharing Distribution
As outlined in the MoonLite whitepaper on page 21 the profit distribution to token holders of MoonLite will occur in two ways: 1) Token Buy-Back and 2) Token Burn.
1) Token Buy-Back Information
Moonlite will allocate 35% of its annual corporate profits to buying back its MNL tokens at a premium rate. The buy back will give token holders a notable return (the action will decrease the available number of tokens).
The following token repurchase price calculation will be used:
{[(35/100) x Annual Corporate Profit] x [number of tokens held/total tokens]} + Current Token Price
This calculation means that MNL token holders that sell tokens in the repurchase will receive the current market price for their tokens plus their share of the equivalent of 35% of the corporate net profits (after interest, taxes, depreciation and amortization).
The first buyback will be offered to Pre-sale contributors only as a closed purchase offer. Any remaining distribution after the Pre-sale contributors buy back, will be offered to other token holders through a buy order on the public exchange.
2) Token Burn Information
All repurchased tokens from the token buy back will be immediately “burned” and taken off the market. Decreasing the total supply of MNL tokens will have the effect on the net asset value of the token that will increase over time.
Summary
Overall, MoonLite appears to have a very good road map and development plan for implementing a large-scale cryptocurrency mining operation with a well thought-out profit sharing set up to benefit the token holders. There is no doubt that the value of MoonLite assets will increase over time both from its large-scale mining operations which will translate into token holder profits and its planned profit sharing scheme.
More information about the senescence and use of older mining machines should be investigated by MoonLite. While they plan to mine bitcoin, ethereum, litecoin, and DASH coin there are many other coins that MoonLite could adapt older machines to mine such as Monero (XMR), Bitcoin gold (BTG), Ethereum Cash (ETC), Electroneum (ETN), Revain token (RVN), Vertcoin (VTC) and others. A cost-benefit analysis of the potential for mining other coins with older mining rigs should be conducted to see if mining other coins can give additional profits.
MoonLite is a unique ICO offering a profit sharing accrual through its token. MoonLite remains a very strong buy.
For more information about MoonLite see:
MoonLite website: https://www.moonlite.io/
MoonLite whitepaper: https://www.moonlite.io/wp-content/uploads/2017/11/Moonlite-Final-White-Paper.pdf
Social Media Links:
Bitcoin talk forum: https://bitcointalk.org/index.php?topic=2712054
Facebook: https://www.facebook.com/MNLCoin/
Telegram group: http://t.me/moonliteico
Twitter: https://twitter.com/MoonLite_ICO
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