What Is Enzyme (MLN)?
MLN is the native token of Enzyme, which is an Ethereum-based asset management platform. It essentially allows users to deposit their money into vaults, known as Enzyme Smart Vaults, that contain various investing strategies. Though users can also create their own vaults. Besides that, Enzyme offers a huge variety of DeFi protocols and tokens that allow users to earn yield in other ways, for example, by lending their assets to others.
Initially, Enzyme was known as Melon. However, in 2020, the company decided to rebrand to Enzyme. They only changed the name, the ticker symbol of the native token remained as it was before.
Enzyme is constructed out of smart contracts that run on Ethereum. Due to this reason, users have to pay transaction fees in ETH. However, the Melon Engine exchanges all ETH for MLN at a premium price and then burns the MLN tokens it has just bought to control the total supply and avoid MLN price decrease.
Use Cases of MLN Tokens
MLN is based on the ERC-20 token standard. It’s the utility token of Enzyme that allows users to access Enzyme Smart Vaults as well as build them. Besides that, MLN tokens allow users to participate in the governance process of the Enzyme crypto project.
If you want to see how the MLN price changes in real time, look at the Enzyme price chart above.
Tokenomics of MLN
The Enzyme tokens are inflationary since there is no max supply set. According to the original MLN token economics, 300,600 new tokens were distributed annually at a constant inflation rate, and any extra tokens were burnt. However, in 2021, there were some modifications made to the economic model of the Enzyme crypto project. This resulted in token emissions declining by 20% each year and all unused MLN tokens being burned after two years of inactivity.
One way or another, you should definitely keep in mind the fact that MLN price is subject to change, especially if you're planning to buy Enzyme tokens.
