Mintlayer is a Proof of Stake blockchain that operates as a sidechain to Bitcoin, designed to enable decentralized finance (DeFi) activities with direct Bitcoin interoperability. By simplifying token creation and supporting a range of tokens and assets, Mintlayer enhances Bitcoin’s capabilities and streamlines the integration of DeFi applications and multi-currency transactions. ^[1]

Overview

Mintlayer is a Proof of Stake blockchain that functions as a sidechain to the Bitcoin network, allowing direct interoperability without a master/slave relationship. It simplifies DeFi activities with Bitcoin, eliminating the need for wrapped versions or smart contract languages like Solidity. Tokens on Mintlayer are created by embedding extra data into a UTXO, making tokenization straightforward. This approach and Bitcoin's liquidity facilitate future DeFi developments, such as real-world asset tokenization. ^[2]

Mintlayer's Proof of Stake system requires participants to lock tokens and uses a pool-based protocol to increase network participation. Those without the 40,000 ML needed to run a pool can delegate to existing pools to help secure the network and earn rewards. Mintlayer blocks are produced every 120 seconds on average, limited to 1MB. Staking pool rewards are distributed through accounts to avoid excessive outputs, which could increase node memory usage and result in large transactions. ^[2]

Features

Mintlayer Wallets

• Mojito: Mojito is a Bitcoin wallet that supports the Mintlayer network, available for Android and iPhone and as a browser extension for Chrome, Firefox, and Edge. It supports HD Wallets and the Lightning Network for fast payments and handles BTC and ML tokens. Future updates will include support for any token issued on the Mintlayer Network and the ability to delegate ML tokens to staking pools.
• Node GUI: Node GUI is a full-node graphical user interface that allows running a staking pool from a desktop computer.
• Wallet CLI: The Wallet CLI is an interactive, command-line wallet for Mintlayer, designed for professional node operators proficient with the command line.
• Wallet RPC: The Wallet RPC is designed for developers, exposing a port for programmatic command sending once operational. It is ideal for exchanges, marketplaces, e-shops, and similar platforms. ^[3]

Security Tokens

Mintlayer's MLS-01 tokens offer versatile tokenization technology to digitize Bitcoin securities. Tokenizing security involves representing ownership rights or credits in a token, typically guaranteed by the issuer. Issuing assets on Mintlayer exposes them to Bitcoin's liquidity, allowing direct interaction from the blockchain. Tokens can represent various assets, including real estate, luxury goods, and stablecoins, though legal classifications may vary by jurisdiction. Mintlayer’s architecture provides tools for decentralized finance with a simpler tokenization system than other projects. The MLS-01 standard, similar to ERC-20, allows token creation without writing smart contracts. Creating a token on Mintlayer involves filling a few data fields in a transaction, costing 100 ML, and requires no technical expertise. ^[4]

Mintlayer tokens, including MLS-01, are designed for DeFi contexts with features like multi-sig and whitelists for KYC compliance, which is beneficial for security tokens. Mintlayer’s smart contract environment enables additional functionalities, such as transaction taxes and dividends, replicating key features from Ethereum. Alongside MLS-01, Mintlayer offers NFT tokens under the MLS-03 standard, which share basic MLS-01 features but are non-fungible and suitable for various DeFi and on-chain applications. ^[4]

ACL Rules

Access control lists (ACLs), or whitelists, limit a token’s transferability by default, allowing any address to transfer and use the token unless the token creator sets or updates an ACL. ACLs ensure compliance with specific company policies or legislation, enabling the trading and transfer of security tokens. A basic ACL implementation restricts token transfers to addresses within the ACL, with the ability to add or remove addresses as needed. More complex rules, such as minimum transfer amounts or transfer taxes, can be implemented through smart contracts. Similar behavior to ACLs can be achieved using Mintlayer's multi-sig functionality, requiring owner approval for transactions and allowing recipient address verification offline. This centralized approach aligns with the securities market's need for centralized entities to maintain public lists, offering flexibility for token issuers to adapt their policies or handle complex approval systems offline. ^[4]

ML Token

The ML token is a utility token within the Mintlayer ecosystem. It pays transaction fees and additional costs, such as token creation. ML tokens also allow users to stake and participate in the network as block producers, earning rewards through the consensus protocol. Mintlayer's consensus protocol utilizes pools for block production, enabling users to participate and earn rewards regardless of the number of ML tokens they hold. A pool requires a minimum of 40,000 ML tokens, which any user can delegate to earn rewards. Each block produced for the first ten years will include a block reward. Mintlayer allows ML token holders to influence network development as an open-source project by prioritizing roadmap events and suggesting features. Additionally, ML tokens are used to pay network and token issuance fees on Mintlayer. ML tokens can also purchase RBB LAB services, including Mintlayer smart contract development, security audits, and decentralized application software engineering. ^[5]

Tokenomics

400,000,000 ML tokens were pre-mined and had the following distribution: ^[5]

• Company Reserve: 26.73%
• Seed: 13.65%
• Strategic Sale - Long Vesting: 13%
• Team & Advisors: 12.50%
• Marketing & Listing: 12%
• Protocol Development: 10%
• Strategic Sale - Short Vesting: 6.50%
• Community Incentives: 5%
• Pre-seed: 0.62%

Partnerships

Salus

On May 18th, 2024, Mintlayer partnered with Salus to develop the Thunder Network, a Layer 3 (L3) solution to enhance Bitcoin's scalability and privacy. Thunder Network integrated the Ethereum Virtual Machine (EVM) to facilitate the development of Bitcoin-connected decentralized applications (DApps). The partnership combined Mintlayer's expertise in scalability with Salus' zero-knowledge (ZK) technology to ensure secure and private transactions. ^[6]

Launchpool Labs

On March 2nd, 2023, Mintlayer partnered with Launchpool Labs, a project incubator connecting stakeholders of the crypto community. The goal of the Incubator Program was to support early-stage projects by providing essential financial and technical services. ^[7]

Forint Finance

On January 13th, 2023, Mintlayer partnered with Forint Finance, the developer of Swappy, a cross-chain swap and decentralized exchange. Swappy offered a DEX with cross-chain capability and featured an on-ramp for customers to deposit funds via debit or credit card. ^[8]

Metaverse 4 Finance

On January 10th, 2023, Mintlayer partnered with Metaverse 4 Finance, dpixel, and Sella Group's venture incubator. Mintlayer served as a scale-up partner for the Metaverse 4 Finance event, assisting in selecting startups and providing grants and mentorship to the winners. ^[9]

Seed Venture

On August 1st, 2022, Mintlayer partnered with Seed Venture. Seed deployed on Mintlayer to enable the minting of SEED tokens, which were airdropped to holders on Ethereum and Polygon. ^[10]

Portal DeFi

On May 2nd, 2022, Mintlayer and RBB Lab announced a collaboration with Portal DeFi, backed by Coinbase. Both projects aimed to provide tools for secure decentralized finance agreements that maintain privacy, allowing users to interact directly without relying on intermediaries or centralized authorities. ^[11]

BlockInvest

On January 25th, 2021, BlockInvest, a FinTech project specializing in financial instruments, partnered with Mintlayer to enhance financial processes for real estate owners and investors using blockchain technology. ^[12]