To list a masternode project on Midas, you must agree to their Terms of Service. Most people skim through the TOS, assuming that it’s basic and standard. The coin devs I’ve spoken to, did not realize that Midas would be free to sell all rewards from the Instant Share node that are not dispersed. For newer projects, this could amount to thousands of dollars per day!
Below is a snippet from the TOS:
“8. To list a coin to the platform, the project team is required to provide collateral equal to one MN and process payment of the necessary listing fee, paid in MIDAS.…..
Rewards not proportionally dispersed to new Investor’s shares from the Instant Share node are handled by Midas”
As a coin developer, not only are you required to provide collateral for a full node and pay a listing fee (both of which are common in the shared masternode service space), but you also give up the right to unfilled instant share rewards, unfairly and often unknowingly enriching Midas.
Let’s backtrack for a moment. Nearly two months ago, Midas implemented “Midas-Lock-In”, which allows investors the ability to lock 150 Midas coins on the platform and in exchange pay “Zero Fees” on their masternode investments. Midas touted this Lock-In as revolutionary and made statements that all investors will flock to Midas, making them the largest masternode service in existence.
In theory, the idea of zero fees sounds fantastic. However, we all know that servers, bandwidth and employees are not free, and must be paid for. Not surprisingly, many discord users began to question how Midas could afford to do this <spoiler> it’s at the expense of masternode projects and coin developers </spoiler> Midas released an
https://mn.investments/how-can-midas-afford-zero-fees/ in an effort to explain how they could afford to offer free masternode hosting.
The table below is taken from the above referenced
https://mn.investments/how-can-midas-afford-zero-fees/:
https://cdn-images-1.medium.com/max/1600/1*8v3txgR4iy3pGWhsAsPi5Q.pngMasternode Revenue: 4.87 BTC a month! How is that possible with “Zero Fees”? thankfully, they clarify where that estimated 4.87 BTC comes from in this Article and is shown below:
https://cdn-images-1.medium.com/max/1600/1*57wQa9r-C9iWH1EDeJnP0A.pngBut then in conversation they state this:
https://cdn-images-1.medium.com/max/1600/1*
dJ5wCEe5snLrP2n7Ew_NdQ@2x.jpegHmm apparently they don’t know how they operate or better yet they clearly lie to developers!
BTC in BTC out: New revenue stream we are going to discuss
Selling fees is typical, all services do this to cover costs. However, Midas is selling Instant Rewards, (historically at a rate 5 times that of their normal service fees), they are raking it in from the Developer provided masternode. This tactic is allowing them to provide a “Zero-fee” feature for their own investors but killing the projects themselves as they are forced to continually sell the project’s coins. But now they are adding a new feature!
BTC-IN BTC-OUT so what is this exactly??? Instead of Midas selling unallocated Instant Rewards on an exchange, they plan to sell those coins to Midas platform users, hmmm sounds good right? No its just as bad!
Here is their intentions from their own mouth:
https://cdn-images-1.medium.com/max/1600/1*
2z0rmWWSvySaF_VAisc3wQ@2x.jpegI won’t begin to try to explain revenue vs. profit but clearly when you make something from nothing it’s pure profit and keeping Unallocated Instant rewards and selling them at all and keeping the return is obviously profit!
Unless explicitly acknowledged as allowed by the coin developers, Midas should not sell those unallocated rewards for their own benefit, to begin with!
The coin developers we’ve spoken with, were unaware that Midas was keeping and selling these unallocated Instant Rewards. This thread from a respected coin developer details the deceptive practices:
https://bitcointalk.org/index.php?topic=5054792https://cdn-images-1.medium.com/max/1600/1*NL6W2OfA2oTkJrQsXRYQTA.png
Here are some developers that found out after the fact along with the questions I asked them:
1) Did you review their TOS for listing?
2) Did you agree to let them keep Unallocated Instant MN rewards?
3) Did they inform you that they were selling them for revenue?
4) Did you know that they are using this method to support their no fee service?
5) Do you know how the BTC -in BTC-out system will be funded?
https://cdn-images-1.medium.com/max/1200/1*
7zzv28qakQ_9r2NMAJL4Cw@2x.jpeghttps://cdn-images-1.medium.com/max/1200/1*
Qd2Vz5DRoM-DldTg8NinpA@2x.jpeghttps://cdn-images-1.medium.com/max/1600/1*
RPYgDuw9Va2AinciAxe5PA@2x.jpegThink about it, if a coin developer took a portion of their own premine, created a masternode, took those rewards and sold them; investors would throw their arms up in an uproar! That is exactly what Midas is doing, essentially flooding the market and the only one profiting is Midas!
I then made this statement: The fact that you keep those Unallocated rewards and not sending them back to the developers is still a problem.
The response from Midas indicates that they see nothing wrong with this:
“No it’s not at all. It is what you do with them and how you treat those coins that is far more important. This generates revenue — vital for any business. This revenue ensures that we can continue to develop, both investment features and strengthen security and supported by a professional team.”
In closing, Midas is profiting at the expense of developers and attempts to cover it up by using fancy explanations when truly they are taking advantage of coin developers and the projects they represent. Midas is attempting to corner the market, allowing them to monopolize the shared masternode space and continue to corrupt the Altcoin Market!
Protect yourselves and your projects, don’t be fooled by Midas!
