Cycle 1 & Future Cycles - Important Updates

This page explains the changes we’re making to the Cycle 1 end process and how future cycles will work.

It covers:

  • What’s staying the same

  • What’s changing

  • Why we’re doing this

  • A first look at the Vault Guardians concept

This is meant as a high-level overview. For full details, check the main docs pages like Cycle End Snapshot, Primary Vault Claims, and Keys to the Vault.

TL;DR Summary

  • Cycle 1 promises are still being honored. Snapshot, burn-to-claim, vault splits, Keys, etc all still apply.

  • There will be no new token for Cycle 2. We are not launching a new token or presale. $MONSTA continues as the token for Cycle 2 and beyond.

  • Cycle 1 → Cycle 2 includes a one-time $MONSTA airdrop. Burners in Cycle 1 get:

    • Their share of the C1 Primary Vault, plus

    • A one-time $MONSTA airdrop from a dedicated C2 airdrop pool.

  • Keys + Bonus Vault are Cycle 1 only. Keys unlock the Cycle 1 Bonus Vault via snapshot + airdrop, then become OG collectibles. No Keys game or Bonus Vault in Cycle 2+.

  • Future cycles are simpler and more “autopilot.” No new presales, no new tokens, no new Keys. Just:

    • $MONSTA

    • The vault

    • Rollover

    • Yield

    • And a small group of community Vault Guardians helping oversee the vault.

What Stays the Same

These are not changing:

✅ 12-Month Cycle Structure

  • Each cycle still lasts 12 months.

  • At the end of the cycle we:

    • Take a snapshot of token balances (and for Cycle 1, Key holdings)

    • Open a burn-to-claim window for vault rewards

✅ Cycle 1 Snapshot & Vault Mechanics

  • Cycle 1 snapshot is still on January 8th, 2026.

  • At Cycle 1 end, the vault is split as originally designed:

    • 60% → Primary Vault (C1 burn-to-claim)

    • 25% → Rollover Vault (seed for Cycle 2)

    • 15% → Bonus Vault (for Cycle 1 Keys)

  • Burn-to-claim (all-or-nothing):

    • The snapshot records how many $MONSTA you hold in each wallet.

    • To claim your vault share for that cycle, you must burn the exact amount recorded for you at the snapshot during the claim window.

    • If you burn less than your full snapshot amount, or don’t burn at all, you do not receive any vault payout for that cycle, and your entire share of that cycle’s vault is treated as unclaimed and rolls into the next cycle’s vault for remaining holders.

✅ Keys to the Vault (Cycle 1)

  • Keys still function as the Cycle 1-only bonus game.

  • Collecting all 12 Keys in a single wallet by the Cycle 1 snapshot makes you eligible for the Cycle 1 Bonus Vault.

  • You do not have to burn your Keys. They stay in your wallet as art / collectibles.

What’s Changing

1. No New Token for Cycle 2

Originally, future cycles were designed around new tokens and new raises each time.

We’re not doing that anymore.

Instead:

  • We stick with one token: $MONSTA

  • No new token launches for Cycle 2+

  • No new presale/fundraise mechanics for future cycles

This keeps things simpler, more honest, and more sustainable.

2. One-Time $MONSTA Airdrop (Cycle 1 → Cycle 2 Only)

In the original design, each new cycle would launch a new token, and a portion of that new supply would be airdropped to burn participants from the previous cycle.

We’re still honoring that idea for Cycle 2 — just with a different implementation:

  • Instead of launching a new token for Cycle 2, we’re keeping $MONSTA as the token.

  • Instead of using fresh new-token supply to fund the airdrop, we’re using a pool of existing $MONSTA sourced from:

    • Treasury-held tokens

    • Buybacks executed before the Cycle 1 snapshot

Because the total MONSTA supply is fixed and treasury/buyback reserves are finite, this type of “previous cycle burn → next cycle airdrop” can realistically only happen once. So:

Cycle 1 → Cycle 2 gets a $MONSTA airdrop. Future cycles do not have additional MONSTA airdrops built in.

How the C2 Airdrop Works

  • A dedicated Cycle 2 $MONSTA airdrop pool (A_pool) will be set aside before the Cycle 1 snapshot.

  • This pool is:

    • Excluded from Cycle 1 vault share calculations

    • Funded from leftover treasury tokens plus buybacks.

Who’s eligible?

  • Only wallets that fully burn their snapshot amount of $MONSTA during the Cycle 1 burn/claim window.

Among those eligible wallets:

  • Your share of the airdrop is proportional to how many tokens you burned compared to the total burned by vault claimers in Cycle 1.

Formally:

Airdrop for you = A_pool * (your_burn / total_burned)

Where:

  • A_pool = total C2 airdrop pool

  • your_burn = the number of $MONSTA you burned in Cycle 1 (must match your snapshot amount to qualify)

  • total_burned = total $MONSTA burned by all eligible participants in Cycle 1

This lets us:

  • Keep the spirit of the original “next-cycle airdrop for burners” design

  • Do it without launching a new token

  • And be clear that, due to fixed supply and limited treasury/buyback capacity, this is a one-time airdrop specifically for Cycle 1 → Cycle 2.

3. Keys + Bonus Vault are Cycle 1 Only

For clarity:

  • Keys will not be used in Cycle 2 or later.

  • There will be no new Keys mints after Cycle 1.

  • There will be no Bonus Vault in Cycle 2+.

How the Cycle 1 Bonus Vault will be paid out:

  • At the same time as the C1 snapshot, we also snapshot Key holdings.

  • If your wallet holds:

    • At least one complete set (Keys #1–#12)

    • You will automatically receive a C1 Bonus Vault airdrop.

Distribution:

  • We count total full sets across all wallets.

  • Each full set = one equal share of the Bonus Vault.

  • Airdrop goes directly to the wallet that held the full set(s) at snapshot.

You do not need to connect to the dApp or manually claim.

After all that:

  • Keys become collectible OG badges only.

4. Future Cycles: Simpler, Vault-Focused Model

From Cycle 2 onward:

  • $MONSTA continues as the token

  • There are no new Keys and no new Bonus Vault

  • There are no further MONSTA airdrops planned

  • Cycles revolve around:

    • Primary Vault

    • Rollover

    • Yield generated via the vault’s Earn/staking strategies

Each cycle still:

  • Takes a snapshot

  • Lets you burn up to your snapshot amount to claim your share

  • Rolls forward unclaimed value into the next cycle’s vault

Think of Cycle 1 as the full game mode and Cycle 2+ as the mature, slow-burn, yield-backed phase.

5. No “Trading Ends” Cliff

Older wording implied something like:

“If you don’t burn, you have 12 months to trade before support ends and trading ends.”

That is no longer the model.

Now:

  • If you don’t burn in a given cycle:

    • You forfeit that cycle’s vault claim (this was always the case anyway)

    • Your unclaimed portion of that cycle’s vault goes to the next cycle’s vault

  • Your $MONSTA can continue to be held or traded and counts for cycle 2 vault share calculations.

6. Team Compensation & Involvement

Given real-life events, burnout, and market conditions, we’re adjusting how the team fits into this going forward.

  • There will be no ongoing team compensation after Cycle 1.

  • A small amount of treasury will be reserved for:

    • Infrastructure

    • Hosting

    • Essential maintenance / dev as needed

  • Remaining treasury assets will be deployed (prior to cycle 1 snapshot) into vault asset accumulation & token buy-backs which will be used to form the C2 airdrop pool. This pool will not be part of vault share calculations for cycle 1 and is effectively excluded from circulating supply for the sake of those calculations ensuring that cycle 1 holders potential vault shares are still maximized.

The protocol is shifting toward low-touch mode:

  • Taxes feed the vault

  • The vault generates yield via selected platforms ensuring continued compounding

  • Burn-to-claim cycles continue

  • A small group of community members (see below) help oversee vault management

We’ll still be around, just less intensely day-to-day, and without an expectation of constant modding / hand-holding.

Introducing: Vault Guardians 🛡️

To avoid everything depending on a single person forever, while also not handing the keys to random haters, we’re introducing a community-aligned structure:

Vault Guardians – a small group of trusted holders helping oversee the vault.

Think of them as:

  • A council of signers on the vault multisig

  • With clearly limited powers

  • And skin in the game as actual MONSTA holders

What Vault Guardians Do

Vault Guardians will help:

  • Propose and approve vault asset rotations

    • e.g., rebalancing CAKE → ETH, managing stablecoin mix, etc.

  • Select yield platforms within a conservative risk framework

    • Blue-chip assets

    • Major chains

    • Reputable Earn/staking platforms

They do not:

  • Touch user funds for salaries, giveaways, or random spending

  • Change taxes, contracts, or core protocol parameters

Their job is vault stewardship, not running the whole project.

How They’re Selected

  • Guardians will be selected via an application process.

  • Requirements will likely include:

    • Holding a meaningful amount of $MONSTA

    • Demonstrated alignment with the project

    • Willingness to sign and review proposals from time to time

The specific number (e.g., 5–7 Guardians) and the exact process will be detailed closer to launch of the Vault Guardian program.

How the Multisig Will Work (High Level)

Without going into full technical detail:

  • The vault will be controlled by a multisig wallet with a mix of:

    • Core team wallets (for now)

    • Community Vault Guardian wallets

  • A minimum number of signatures will be required to move or reallocate funds.

  • At least one core signature will be required in early phases (to prevent malicious captures), but Guardians will still have real influence—we won’t be able to move vault funds alone.

There will also be:

  • A simple inactivity rule, so if a Guardian disappears for a long time, they can be replaced

  • A documented scope for what the multisig is allowed to do (and not do)

The goal is to share responsibility, lower individual risk/burden, and keep the vault functional even if individuals step back.

Why We Made These Changes

Short version: we want Based Monsta to be simpler, cleaner, and built to actually last, instead of relying on endless new tokens, presales, or 24/7 team grind.

1. Make Value Flow Cleaner & More Sustainable

The original design with new tokens every cycle, new raises, and more moving parts was fun on paper—but in practice, it adds:

  • Extra complexity for holders

  • Extra overhead for the team

  • Extra room for confusion and drama

By keeping one token ($MONSTA) and focusing everything around:

  • The vault

  • Rollover

  • Yield

  • And a one-time C2 airdrop bridge

…we turn Based Monsta into something that’s much easier to understand, easier to operate, and easier to stick with long term.

Less “which token am I supposed to hold now?” More “I hold MONSTA, here’s how my vault share grows.”

2. Match the Current Market Environment

The market we’re in now is very different from when we first sketched out multi-token, multi-raise cycles.

Right now:

  • People are more cautious about new launches and endless versions of tokens

  • Attention is fragmented

  • Liquidity isn’t infinite

Instead of trying to force a “new cycle, new raise, new ticker” meta into a market that doesn’t really want it, we’re doubling down on:

  • One token

  • A growing, yield-backed vault

  • A clear, repeatable cycle model

It’s a more conservative structure that still rewards long-term holders and active participants, without needing hype launches every 12 months.

3. Respecting Time, Energy, and Mental Health

Running full-send everything, all the time, with heavy community management, new games, new launches, and constant fire-fighting is not sustainable forever—for anyone.

These changes:

  • Reduce the need for constant hands-on modding and event-running

  • Remove the pressure to design and ship a brand-new token/raise every cycle

  • Let the protocol do more of the work on its own (via taxes → vault → yield → rollover)

That doesn’t mean disappearing. It means:

  • The system is designed to keep functioning even when we’re not living in Telegram 24/7

  • The team can choose when/how to be involved, instead of being forced into permanent overdrive

4. Bringing in Aligned Help (Vault Guardians)

Instead of relying on a single person to make every vault decision forever, we’re introducing Vault Guardians:

  • A small group of trusted, aligned holders who help oversee vault allocations and yield strategies

  • Operating through a multisig with clearly defined powers and limits

That gives us:

  • Shared responsibility instead of “one person decides everything”

  • More eyes on risk and opportunities

  • A structure that can keep working even if individual people step back for a while

It’s all about maturing the protocol and tightening the design so it can actually run for multiple cycles without depending on constant chaos and fresh raises.

What You Should Do as a Holder

Before January 8th, 2026 (Cycle 1 Snapshot):

  • Decide how many $MONSTA you want to be holding at snapshot time.

  • If you’re in the Keys game, make sure your full set is in a single wallet before the snapshot.

  • Remember: whatever the snapshot records for your wallet is the exact amount you’ll need to burn if you want to claim your C1 vault share and C2 airdrop.

After Snapshot (January 10th → January 31st, 2026):

  • You can trade or move your tokens if you want.

  • But if you plan to claim your vault share, you must, by January 31st, 2026:

    • Hold (or rebuy back) up to your exact snapshot amount, and

    • Burn that full amount through the dApp.

Choose not to burn, and you won’t receive any C1 vault payout or the C2 airdrop—your entire share for that cycle rolls into the next cycle’s vault.

This is where the game theory comes in:

  • Some players might sell after the snapshot to take advantage of higher prices, then try to buy back cheaper during volatility and still complete their full burn before the deadline.

  • It can work… or it can backfire if price runs away. That risk is fully on the player.

The burn-to-claim window opens from January 10th 2026 to January 31 2026

After Cycle 1:

  • Decide if you want to keep stacking MONSTA and positioning for future cycles.

  • If you’re long-term aligned and want to help shape vault strategy, consider applying as a Vault Guardian once that program is formally opened.

The Deep Dive

Take a listen to this audio overview designed to help users better understand the cycle end dynamics and game theory involved.

23MB
MONSTA_Burn_Strategy_The_Snapshot_Dynamics.m4a
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If you’ve read this far, you’re probably one of the people we’re designing this “long-term mode” for. 🧪

Thanks for riding with us through Cycle 1 — Cycle 2 is about taking everything we’ve built and making it work harder for the people still here.

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