Navigating the MELD Cross-Chain Token Ecosystem
The cross-chain $MELD Token is pivotal in the MELD ecosystem. Enabled by crypto bridges and MELD's innovative capabilities, MELD tokens flow from one blockchain to another. This cross-chain migration involves both burning and minting tokens.
MELD Digital takes the helm in these processes, vigilantly monitoring liquidity availability across various blockchains. It dynamically balances liquidity distribution to bolster the robustness and resilience of the MELD ecosystem.
MELD Digital optimizes bridging across chains, ensuring adequate liquidity is present on any chain at any time. This continuous optimization is vital for the MELD ecosystem's efficient operation, significantly enhancing user experience.
MELD Digital employs a multisig wallet model, limiting access strictly to authorized MELD team members. This provides an additional security layer, safeguarding the assets within the ecosystem.
MELD Digital manages the MELD treasury, which comprises unissued MELD tokens and ADA block rewards accrued from the ISPO. Its role emphasizes a strong commitment to a secure, balanced, and resilient ecosystem for all users.
When a user bridges their MELD token from one chain (Cardano) to another (Ethereum), the token is locked in a pool on the origin chain and subsequently issued on the destination chain. This bridging interaction doesn't involve any minting or burning. The total number of MELD tokens remains a constant 4 billion, minimizing security risks associated with minting or burning activities.
The EVM network employs an in-house developed token contract with key functionalities:
- Deterministic and vanity addresses of the contract in all EVM networks: 0x333000333b26ee30214b4af6419d9ab07a450400.
- Role-based access control for minting, burning, pausing, and unpausing.
- Support for meta-transactions following the GSN standard.
- No blacklist user functionality.
- No upgradeable contracts.
MELD's official native tokens are deployed across all supported networks, retaining the total supply of 4 billion MELD tokens. Initial bridging, involving minting and burning tokens, will be conducted securely via a multisig approach.
Given the difficulty and potential risks of bridging, MELD liaises closely with third-party bridges. These bridges have native MELD liquidity pools across multiple networks, allowing users to deposit their liquidity on network A and receive tokens on network B.
The MELD DAO, in tandem with MELD Digital, uses multisig wallets to mint and burn large numbers of tokens to balance MELD distribution across blockchains. The DAO uses the MELD treasury for this process.
If a large user group moves their tokens from one chain to another, e.g., from Ethereum to Cardano, the DAO will burn tokens on the Ethereum side and mint more on the Cardano side.
$MELD multi-chain token rebalancing graph
By using this approach, potential risks associated with publicly available mint and burn contracts are minimized and enhancing security with the multisig signing process.