BTC Savings Accounts
Last updated
Last updated
As mentioned in Payment and Processing, instead of instant payouts, users can convert a portion of their $MESI profits into BTC, which is then deposited into a dedicated savings account.
User selects the portion of payouts to convert into BTC savings, subject to two joint limits:
Up to 5% of last month's earnings can be converted. In the first month after launch, this will be a fixed amount for all users, then it will become user-specific.
Converted earnings are to a maximum BTC equivalent in USDC, which increases with user tiers. (See Tiers Breakdown for details.)
Before the conversion, users see an estimated BTC amount they will get, and need to approve that (note: it is an estimated amount and might differ from the actual obtained).
Once a user approves the conversion BTC is purchased instantly from an external exchange using a portion of MESI tokens. BTC is then stored in the MESI treasury, and users receive an off-chain BTC (mBTC) on their Mesi wallet, representing their BTC savings.
The claimable BTC balance starts at 0 and increases by 1/60 per day over time.
Some in-app payments can be covered using mBTC. When using mBTC for payments, the effective value is based on the unlocked BTC portion. Example:
1 BTC = $100,000
The user holds 0.01 mBTC
Only 2/60 unlocked
Effective payment value = $100,000 × 0.01 × (2/60) = $33
To withdraw BTC, users must maintain the account level that was needed to convert a portion of their savings to BTC in the first place. Example:
A Level 2 user can convert up to $100 into BTC.
If their level drops to 1 or 0, their BTC unlock schedule resets to 0, preventing withdrawals and in-app mBTC usage.
Once they regain Level 2, the unlock schedule restarts from zero.
BTC stored on behalf of the user by Mesi generates additional yield from Web3 opportunities such as staking, liquidity provision, lending, borrowing, and more. A portion of that yield is allocated back to mBTC, increasing the BTC users can withdraw.
MESI takes a share of the yield as part of its revenue model.
No fixed interest rates are promised - instead, claimable BTC balances users see on their wallets increase over time based on the duration of locked tokens and the actual yield accrued.
