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  • Writer's pictureEvîn Cheikosman

Tuesday Project Spotlight: Munch

Updated: Feb 26, 2023



THE PROBLEM

“Small market cap coins are vulnerable to large single transactions de-stabilizing the value. Yet, often tokens collected for distribution are stored in a private wallet for conversion in a single transaction. The problem arises when these tokens are converted to another currency in a single transaction. It can sink the token value for the community and risk the future of the project. Until this value can be exchanged into the resources and services charities need, all reported donations are unrealized and theoretical (1).”


THE PROPOSED SOLUTION

One way to protect investors and charities alike is to lock in the liquidity. This is MUNCH‘s preferred model.

MUNCH is a DeFi project that incorporates automatic donations into financial transactions. 3% of every MUNCH transaction is diverted, automatically converted to ETH, and then routed to a community-chosen and verified charity.


With MUNCH, the liquidity held in the pool token’s movement is locked with a time-based function. This means it can’t be moved or redeemed until six months have passed. This prevents presale token holders and founding developers from removing liquidity suddenly, and dropping the token value.

I

n addition, MUNCH has a fixed market cap with no additional token minting. The code of the contract is public so everyone can see standards created and verify the process.

All contributions from the community will maintain their entire transaction value, charitable projects can liquidate them without loss, and value for token holders is protected for the ongoing future of the project.

MUNCH’s original mission was to help reduce world hunger (hence the donut iconography). However, necessity (read: COVID) being the mother of invention, the project has evolved. The address set to receive donations is now altered in the token contract on a monthly basis and is decided by community vote. MUNCH users can select from a list of accredited charities to direct resources to, where they are most needed. Users can also view a history of all causes represented and all donations sent from the MUNCH community.

Previous beneficiaries include, :

At time of publication, MUNCH’s current charity was the Pediatric Cancer Research Foundation.


HOW IT WORKS

The biggest differentiator of MUNCH among other cryptocurrencies is that all fees are collected and converted to ETH at the point of transaction. Plus, donations are performed at the contract level without the interaction of MUNCH. Stated another way, MUNCH requires no action or decision making and sends donations directly to the charity’s wallet address. This means that donations do not destabilize the token’s value, and charities can either store the ETH or choose to auto-convert directly to fiat as soon as they receive the donations (2) Thus, because MUNCH does not require a team-owned wallet and liquidity injection (which are known flawed ways to donate with a charity token) (3), their process allows investors to be more flexible and effectuate trustless donations.

WHERE TO LEARN MORE

This short video gives a thumbnail about the project.


To date, there have been three AMA sessions on the project. Munch has restricted embeds of those AMAs, but the links to them are here:

For future videos, you can subscribe to Munch’s YouTube channel.

Munch’s smart contract audit report can be found here and you can read their FAQs here.

And, of course, you can connect with Munch on Discord, Twitter, and Instagram to see regular updates. They also have a subreddit and are on Telegram.

 
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