pMID

pMID defines the initial conditions for MID’s ecosystem, serving as the gateway token distributed during the Pre Round. Its direct relationship with USDC provides participants a stable, risk-mitigated entry point before the main protocol functionalities go live.

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Key Features of pMID:

1. Pre-Round Access to USDC: Before the core services commence, participants can acquire pMID with USDC, effectively locking in stable value.

   During the Pre-Launch phase, participants acquire pMID by contributing USDC (or another stable asset) to the protocol with the intention of initializing the ecosystem. Initially, one might think that pMID can be freely redeemed back into USDC at any time before the main services go live, ensuring participants can maintain full liquidity. However, there is a more nuanced mechanism:

   • Locked Until Outcome is Determined: Once participants commit their USDC in exchange for pMID during this pre-launch round, those funds become “locked” until the round’s outcome is finalized. Two scenarios arise:

     1. If the Round Fails (Does Not Reach Hardcap): Should the pre-launch round fail to hit the necessary hardcap, the process is considered unsuccessful. In this case, participants can redeem their pMID back into USDC, effectively retrieving their funds. Since the round failed, no MID is distributed, and the protocol’s main functionalities do not activate.

     2. If the Round Succeeds (Hardcap Reached): When the pre-launch round successfully meets the hardcap, the protocol transitions towards its main operational phase. However, until this success is formally confirmed, no assets can be moved into the treasury or liquidity pools. Only after the protocol is officially launched and conditions are met, the next steps (such as initializing bonding, staking, and activating AI-driven parameters) take place.

   • No Asset Migration Before Success Confirmation: Before achieving success in the pre-launch phase, the protocol’s operational team cannot deploy the USDC or other contributed assets into the treasury’s strategies, liquidity pools, or interest-bearing instruments. Everything remains in a holding pattern to ensure participant funds are safe and either fully refunded (in the case of failure) or properly utilized after a successful launch.

   Rationale:

   • This mechanism prevents any partial or premature asset movement.

   • Participants are assured that if the initial conditions (hardcap) aren’t met, they get their USDC back.

   • If the round succeeds, their pMID will then convert into MID as per the initial issuance logic. Only after this confirmation can assets move into the treasury or liquidity pools without exposing participants to undue risk.

2. Hardcap Consideration:

   • Hardcap: $1M The hardcap for pMID distribution is strictly set at $1,000,000. By not launching before reaching this threshold, the protocol guarantees that enough capital and participants are engaged to ensure a robust and fair starting point.

3. Transition at Launch: Once the hardcap is reached and the main services commence, certain adjustments occur:

   • AI-Enforced Parameters: AI agents may introduce restrictions on pMID → USDC redemption or adjust bonding parameters to prevent unlimited arbitrage and ensure the bond price remains stable.

   • From Simple Conversion to Sustained Stability: With the protocol live, MID’s value maintenance, bond pricing, and staking rewards align with real-time data analyzed by AI agents. The focus shifts from mere initial fairness to ongoing stability and growth.

4. Transparent and Value-Backed Start: With the pMID phase, participants know exactly how much pMID is available and how to convert it to MID (once the protocol launches) under clear, universal conditions. By linking pMID to USDC, the system provides a baseline of trust and security, free from hidden deals or private sales.

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By imposing a strict hardcap prior to launch and providing an initially unrestricted pMID ↔ USDC relationship, Midgard ensures both fairness and practical value. The moment the protocol goes live—only after meeting the hardcap—participants enter a robust, AI-optimized ecosystem ready to maintain MID’s stable, asset-backed value.

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