Trading of MVD stopped & ETH migration

When we launched Metavault DAO a few months ago, we were aware that market conditions might continue to be challenging, especially for new projects.

Convinced of our product and team, launching regardless was a risk we decided to take with open eyes. Looking back how far we have come in such a short time, there is little we would have done differently if presented with the same choices again.

The one big lesson we have learned is that Metavault DAO/MVD and its positioning in our overall strategy, does not benefit from being traded on the open market.

These conclusions explained in our last blog post remain unchanged, now is time to give further information what these changes mean to the individual MVD holder. It is important to us that everyone’s expectations are realistic and based on the full picture.

If you plan to hold your MVD until after the Ethereum migration to exit your MVD position at pre crash levels, we need to disappoint you: this will not be possible short term.

While we might reach those prices at some point in the future, we don’t expect those levels of the redeem price (see below) in the near future (this is part of the reason for our rage quit offer).

We feel we need to make clear that there are no plans to have MVD trading on “the open market” ever again. As explained in the previous article, all trading pairs have been removed and MVD will only be available at https://app.metavault.org and this will not change after the migration to Ethereum!

Why we don’t have plans for MVD to be traded on open markets again:

We decided against wasting resources and energy on market making / price protection to protect MVD and secure our roadmap.

From the very start we were aiming for Metavault to be a recognisable brand with many arms over various ecosystems and ventures, also outside the crypto sphere. With these goals in mind, but also aware of the general macro environment, we feel it’s in everyone’s best interest if we manage our funds as efficiently as possible. Our focus is even more on building great products now.

How MVD can be exchanged form now on:

MVD can be exchanged against the treasury, effectively working like a liquidity pool.

When acquiring MVD via bonds= MVD tokens are minted

When redeeming MVD against treasury= MVD tokens are burned

Value of MVD:

Volatility will be reduced and the value of MVD will be based on the actual treasury backing from now on, taking the risk-free-value as well as the treasury holding structure into account. This mechanism is much closer to the ownership share structure of a traditional VC.

Mint MVD value= backing including all treasury holdings.

Redeem MVD value= risk-free-value of treasury holdings.

Both those values will depend on the treasury backing that will vary over time.

In conclusion: the Mint value of MVD will be significantly higher than the redeem value, this mechanism takes future rewards into account and discourages short term trades.

Thank you for taking this journey with us, we understand everyone that wants to redeem against the treasury and wish you well. To all who are staying: we are excited to build innovative products together and drive true decentralisation!

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Metavault DAO is a blockchain-based, community governed investment platform and decentralized venture capital fund.

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Metavault DAO

Metavault DAO is a blockchain-based, community governed investment platform and decentralized venture capital fund.