Can anyone explain the benefits of Minting for the treasury and personally? And also wrapping MEMO for a relative newbie frog please.
Minting is kind of a mixed bag. when you mint, you are buying a TIME token at a discount. The treasury gets the money ahead of time and then creates a new TIME token. It does dilute the cost slightly, but the treasury gets to hang on to the capital and earn money on it for the 5 days it takes to mature.
Wrapping is for tax purposes in the US. According to the IRS, every time you are paid a rebase, you are getting new coins, so that’s a taxable event. If you wrap your MEMO, you are no longer getting new coins, you’re just increasing the value of your wMEMO. You won’t get taxed until you unwrap them. Hope that helps.
Pretty much what was said above.
Minting gives the treasury the assets that you are trading in exchange for a discount on TIME.
wMEMO can be used at different place to get extra rewards at extra risk. Some say it helps with tax, some say it doesn’t change anything, but you should consult an expert and not strangers on the internet for that.
thanks for the reply. So if i mint do I get any gains from it or just benefit from the treasury being stronger?
Thanks for the reply, so where can I put wMEMO for extra reward?
There’s a few places. Not 100% as some are not worth. I would try asking in the Discord in the degens and apes channel.
You can borrow against your wMEMO on Abracadabra Money and use the borrowed funds to generate additional rewards. If you are new to this space I would recommend doing some research first before opening a leverage position. If you over leverage yourself it puts you at risk of being liquidated which is never pretty and you could loose a fair chunk of investment.
There are plenty of online tutorials around how to use your wMEMO to generate additional rewards, and even more around Abracadabra Money (probably a better starting point).
Good luck mate!
Actually, a good first read would be this.
Thanks mate. Much appreciated. Sometimes it’s hard to get the right info as a newbie frog. So thanks again.
Hahaha all good mate. Totally understand. I would also recommend having a read through Wonderland Money’s documentation. I think its important to understand how the protocol works and can deliver the APY it claims to - that was key for me before I invested. Initially I thought it was too good to be true, but when you understand how the excess TIME that is generated for each TIME minted, and how it is distributed to those staking their TIME, it made a lot of sense. Also the concept of rebasing / general compound interest if you are not already familiar with it.
In my opinion it is super important to understand what you are putting your money into, so that you can made an educated decision on how much to invest. That way, if things do head south, its not like you blindly put your money into something that is high risk without doing your research (i.e. there is nothing more you could have done).
Happy reading - feel free to reach out if you’ve got any questions.
This is also a pretty decent article that explains how it it all works / why and how the APY is so high.
Awesome. Thanks mate. I’ve done plenty of reading but bcos my knowledge isn’t so much it kinda gets fuzzy. But the bits I do understand it makes perfect sense even though the risk is high. Thanksbfor the support and I may just take you up on that offer.
Nice mate!! Good to hear you doing your research. Doesn’t take long to get your head around it all.
Keeping in mind that the docs are outdated and being reworked.