The Beam/Grin flippening and what it means for MWC.

Chris Dev

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September 19, 2019

Since we began our journey, earlier this year, the two coins in the Mimblewimble space have been Grin and Beam. Grin has a much larger developer community than Beam, but worse economic characteristics and Beam has a supply cap with a very inflationary initial stock to flow ratio and a corporate structure that just appears tone deaf to the Bitcoin space. This is typified by their corporate website with C-Level executive titles and their founder tax on mining for the foreseeable future. Their logo is even an illuminati symbol. The decision to create MWC was, in fact, prompted by the fact that there was no investable Mimblewimble coin on the market at the time. As I have stated several times, had Grin taken our advice (almost literally on day one) and implemented a supply cap, I would have invested in Grin instead of building MWC.

Now, 9 months have passed, and the harsh reality that the most important property of money is scarcity begins to take hold. This is the reason that the market is favoring Beam over Grin. As of right now, Beam's market cap is $51 million and Grin $41 million. The market has spoken. Even though Beam's supply is limited it still has an inflationary stock to flow ratio. Beam's emission ratio right now is whopping 11.75% per month. Next year it will go down to approximately 4.2% per month. In stark contract, MWC will launch with an initial emission ratio of 1.2% per month and decrease linearly over the next four years when the first halving occurs after which the emission ratio will be 0.34% or 4.11% annual. Grin's emission ratio four years from now will be about 25% annually and Beam's emission ratio will still be in the double digits until their year 5 halving when it will finally get down to just over 8%. MWC will always have far better scarcity characteristics than these two coins.

In addition to the significantly better initial stock to flow ratio of MWC, we have set aside 2 million MWC to reward holders as part of the HODL program. This will (possibly completely) offset the inflation through a periodic payment to those who hold the coin for specified periods of time in the years immediately after launch. In addition to all this, we have both a competent dev and marketing team behind the coin with years of experience in their respective fields.

On top of all this, we gave away 30% of the MWC that will ever exist to one of the smartest class of investors the world has ever seen, yes the Bitcoin holders. I can't think of another group that I would want to align interests with than them. To appreciate that, think about the fact that 2,500 - 5,000 moderate to high net worth sophisticated Bitcoin investors will be downloading our beautifully designed wallet

in the coming months. When they see that it's easy to use and that the amounts of their transactions and addresses are not publicly displayed on the blockchain as they are in Bitcoin, what do you think they are going to do? I think it could get very interesting. When they find out they can safely and securely store their MWC using cold storage techniques and software that we implemented they might be pleased as well.

Also, we see more favorable tailwinds in the future. Grin has a large developer community and anything built for Grin can easily be ported over to MWC. We see many of the excellent Grin developers coming over to MWC when they realize the superior financial characteristics and the exciting things we're working on. This will only add to the network effects. We'd love nothing more than to fund these developers who are having understandable problems getting funded to work on Grin.

So this is where we stand and as we all know the launch of a coin brings with it volatility. There might be opportunities for people paying attention while the market digests what we have been talking about all year. Good luck to all.