Monochrome has launched an initial exchange offering for its platform token MCR and raised more than 550.

On September 27, Monochrome Exchange, an Australian digital asset management company founded by Jeff Yew, former co-founder and former chief executive officer of Binance Australia, launched an initial exchange offering for its MCR token and had raised more than $5,500,000 in USDT, according to Lookonchain monitoring reported by BlockBeats. The sale gives the project a larger public token distribution at the same time as it ties MCR to trading fees, priority access to issuance products, staking rewards, node participation and governance.

Token supply and distribution rules

The token has a total supply of 210,000,000 MCR. The public initial exchange offering accounts for 5% of that supply, or 10,500,000 MCR. Tokens bought in the sale will be locked for 1 month after the token generation event, then released linearly over the next 3 months.

Utility linked to trading, issuance and governance

The platform says MCR holders can receive discounts on spot and derivatives trading fees. They also get priority subscription rights for Digital IPO and token issuance offerings. In addition, holders can earn staking rewards, increase their quota weighting on Launchpad, take part in a node programme and participate in governance through the Monochrome decentralized autonomous organisation.

Buyback and burn design

The project has set a quarterly buyback and burn mechanism. Twenty percent of platform net profit will be used to repurchase MCR on the open market and burn the tokens. Twenty-five percent of Digital IPO fee revenue will also be added to the quarterly buyback and burn pool. The stated goal is to let platform business growth contribute to a continuing reduction in MCR circulating supply.

Earlier funding and licence background

Monochrome had previously raised $1,800,000 in a Series A round announced on September 13, 2021. The round was jointly led by Charlie Lee, founder of Litecoin; Samson Mow, chief strategy officer of Blockstream; Wei Zhou, former chief financial officer of Binance; and Kain Warwick, founder of Blueshyft and the DeFi protocol Synthetix. The company’s post-money valuation was about $15,000,000.

On August 18, 2022, Monochrome Asset Management received the first financial services licence in Australia, and that licence was intended for issuing crypto-related exchange-traded funds.

What the report shows

The September 27 data point shows the token sale had already crossed $5,500,000 in USDT at the time of the report, while the token supply, lockup and burn rules provide the structure readers need to judge how MCR may be used across the platform. The next public signals can be followed through changes in MCR circulation after the unlock schedule and through the buyback and burn pool as trading, staking and Digital IPO activity develop.