Beam (BEAM), The Transition from Merit Circle (MC) and Its Privacy Aspects
Privacy, privacy and privacy
In late 2023, the Merit Circle DAO initiated a strategic transformation of its ecosystem, culminating in the migration from the Merit Circle (MC) token to BEAM. This transition, sanctioned through proposals MIP-28 and MIP-29, was aimed at improving the token’s utility and positioning it for future growth.
https://onbeam.com/
However, with the existence of another Beam (BEAM) known for its privacy-enhancing Mimblewimble protocol, some confusion has arisen regarding whether the two tokens share any privacy functionalities.
The migration process allows MC token holders to swap their tokens for BEAM at a 1:100 conversion ratio. The migration began on October 26, 2023, and will remain open for 12 months, giving holders ample time to transition. Here are the key points of the migration:
- Token Swap Rate: 1 MC = 100 BEAM.
- Migration Period: From October 26, 2023, to October 2024.
- Ecosystem Role: BEAM takes over all responsibilities that MC previously held.
- Circulating Supply Impact: Non-migrated MC tokens will remain active but will not benefit from BEAM’s functionalities. Over time, this will effectively reduce BEAM’s circulating supply.
The primary objective of this transition is to streamline governance, enhance usability, and provide a stronger foundation for future developments in the Merit Circle ecosystem.
A key source of confusion regarding BEAM is its similarity in name to Beam (BEAM), a privacy-focused cryptocurrency leveraging the Mimblewimble protocol.
- Privacy-Centric Beam (Mimblewimble):
- Uses Mimblewimble for confidential transactions.
- Ensures default privacy, meaning transactions are shielded by design.
- Competes with other privacy coins like Monero (XMR) and Zcash (ZEC).
- Merit Circle’s BEAM (MC Migration):
- A utility token within the Merit Circle DAO and gaming ecosystem.
- Designed for governance, staking, and rewards.
- Does not employ privacy-enhancing technologies like Mimblewimble or zk-SNARKs.
Key Differences Between the Two BEAM Tokens
| Feature | Merit Circle BEAM | Privacy BEAM (Mimblewimble) |
|---|---|---|
| Purpose | Gaming & DAO Utility | Private Transactions |
| Privacy Tech | None | Mimblewimble Protocol |
| Anonymity | No | Yes (by default) |
| Governance Role | DAO-based | No governance model |
| Circulating Supply Impact | Limited by migration | Standard crypto issuance |
Thus, the Merit Circle BEAM token is not a privacy-focused cryptocurrency like the Mimblewimble-based BEAM. Instead, it functions as an ecosystem utility token for gaming and decentralized governance.
The MC to BEAM migration is a major shift in the Merit Circle ecosystem, aimed at enhancing governance and usability. However, it is important to note that this BEAM token has no privacy features and is unrelated to the privacy-focused Beam blockchain that employs Mimblewimble.
For users looking for privacy-focused cryptocurrencies, the Mimblewimble BEAM remains a solid alternative, while Merit Circle’s BEAM is a governance and utility token primarily catering to Web3 gaming and DAO activities. Understanding this distinction helps avoid confusion and ensures that investors and users engage with the correct ecosystem based on their needs.
JONATHAN T.
I discovered that I still have a few MC coins (after migration period expired). Can I still migrate them somehow?
admin
Hello Jonathan,
After the migration period ends on October 26, 2024, it will no longer be possible to convert MC tokens to BEAM. It’s essential to adhere to the migration deadlines to ensure your tokens retain their intended utility within the Merit Circle ecosystem. I’m sorry about it.