Enzyme (MLN) Crypto Coin Explained: How It Works & Why It Matters
Oct, 8 2025
Enzyme (MLN) Fee Calculator
Fee Details
Enzyme charges a 0.25% access fee on transactions, paid in MLN. The fee is automatically burned, reducing the token supply.
Ever wondered what the buzz around Enzyme (MLN) really means? In plain English, it’s a set of tools that lets anyone - from hobbyist traders to big‑bank‑type institutions - build and run crypto investment funds without a middleman. Below we break down the building blocks, the token economics, and the practical steps you need to get started.
What is Enzyme (MLN)?
Enzyme Finance is a decentralized asset‑management protocol built on the Ethereum blockchain. It started as the Melon Protocol in 2016, rebranded to Enzyme in 2020, and now powers more than $150million in on‑chain portfolios. The native MLN token is an ERC‑20 utility token that grants access to the platform and funds ongoing development. Think of Enzyme as the “Shopify for crypto funds”: the protocol supplies the infrastructure, while you bring the investment strategy.
How the Enzyme protocol works
The system is split into two layers that talk to each other through smart contracts.
- Fund Layer: This is where you, the manager, interact. It consists of a Hub (the control panel) and a series of Spokes that hold the actual assets.
- Infrastructure Layer: Managed by the Melon Council DAO, this layer runs the "adapter", "engine", and "price source" contracts that connect assets to price feeds, purchase MLN for fees, and supply market data.
When you launch a fund, you create a Vault, the on‑chain wallet that actually holds tokens. Investors receive Shares that represent a proportional claim on the vault’s holdings. All actions-swaps, rebalancing, fee collection-are executed by the protocol’s smart contracts, meaning no central party can intervene.
MLN token mechanics & fees
The token does two jobs: it pays the platform’s usage fees and it acts as a deflationary lever.
- Access fee: 25 basis points (0.25%) of assets under management (AUM) are taken in MLN each time the fund processes a transaction.
- Burn mechanism: Collected MLN is automatically burned, shrinking supply and putting upward pressure on price.
- Dilution penalty: If a fund’s vault can’t cover the fee in MLN, shares are diluted by 50 basis points (0.5%). This encourages managers to keep enough MLN on‑hand.
As of October2025, one MLN trades around $7.72 with a daily volume of $7.5million. The token’s price has slipped 3.32% week‑over‑week but is still up 4.80% over the past seven days.
Key players and governance
The protocol’s development is led by Avantgarde Finance, a team that blends traditional finance experience with DeFi engineering. Governance decisions-like fee changes or new adapters-are voted on by MLN holders through the Melon Council DAO. The council also allocates grants to developers building on top of Enzyme, such as the Enzyme.Blue white‑label vault‑as‑a‑service offering. For options traders, the Enzyme.Myso suite provides on‑chain options protocols.
Below is a quick snapshot of how Enzyme stacks up against three well‑known peers. Enzyme’s fee is a touch higher than Harvest but lower than Bancor. Its AUM sits in the middle of the pack, and the MLN burn model gives it a built‑in scarcity advantage. If you’re comfortable using a wallet like MetaMask, the onboarding flow looks like this: For institutions, the process adds a few steps: request a white‑label Enzyme.Blue instance, run a security audit on any custom adapters, and configure multi‑sig governance through the DAO. Every crypto tool carries trade‑offs. Here are the main points you should weigh before committing capital. Balancing these risks against Enzyme’s professional tooling often comes down to your investment horizon and technical confidence. MLN is the utility token that pays the protocol’s access fee, fuels the burn mechanism, and grants voting rights in the Melon Council DAO. Yes. The web UI guides you through fund creation step‑by‑step. You only need a crypto‑compatible wallet and some ETH for gas. A 0.25% fee of the total assets under management is assessed on each transaction and is paid in MLN. The contract automatically burns the tokens. Absolutely. Enzyme.Blue offers white‑label services, compliance tooling, and a dedicated support channel for enterprises. The vault’s share balance is diluted by 0.5%. This protects the network from unpaid usage and nudges managers to keep MLN on‑hand.Enzyme vs. other DeFi asset‑management projects
Project
Native Token
Management Fee
AUM (USD)
Market Cap (USD)
Enzyme
MLN
0.25% (paid in MLN)
150M
≈1.1B
Yearn Finance
YFI
0.20% (paid in YFI)
285M
≈3.2B
Harvest Finance
FARM
0.15% (paid in FARM)
90M
≈650M
Bancor
BNT
0.30% (paid in BNT)
120M
≈900M
How to get started with Enzyme
Risks and considerations
Frequently Asked Questions
What does the MLN token actually do?
Can I create a fund without any coding knowledge?
How are fees calculated and when are they taken?
Is Enzyme suitable for institutional investors?
What happens if my fund can’t pay the MLN fee?
Liam Wells
October 8, 2025 AT 21:05Enzyme (MLN) purports to deliver a decentralized asset management protocol, yet the underlying fee architecture warrants meticulous scrutiny; the 0.25% access fee, denominated in MLN, is automatically burned, thereby exerting a deflationary pressure on the token supply, which is ostensibly advantageous, but the practical ramifications are far more nuanced; the fee calculation, being contingent upon both assets under management and transaction volume, introduces a variable cost component that may erode net returns for institutional participants; further, the opacity of the smart‑contract implementation obscures the exact mechanism by which the burn is executed, raising concerns regarding auditability and potential exploitable vectors; the model also presupposes a sufficiently liquid MLN market to absorb continual token burns, an assumption that may falter under sustained high‑frequency trading; in addition, the governance structure, while ostensibly decentralized, is weighted heavily toward early token holders, thereby entrenching a power asymmetry; the tokenomics, as delineated in the whitepaper, allocate a non‑trivial portion of future emissions to the foundation, which could dilute the intended scarcity effect created by the burns; moreover, the reliance on external price oracles for valuation introduces an additional layer of systemic risk, particularly in volatile market conditions; the fee schedule does not differentiate between passive and active strategies, thereby penalising low‑turnover portfolios that would otherwise benefit from a stable fee regime; the cumulative effect of these design choices suggests a misalignment between the protocol’s purported ethos of equitable asset management and the fiduciary realities faced by end‑users; additionally, the burn mechanism, while aesthetically appealing, fails to address the broader liquidity concerns inherent in a token that serves both utility and speculative functions; further analysis reveals that the projected revenue streams for token stakers are predicated on optimistic assumptions regarding transaction growth; should market activity stagnate, the incentive structure may become untenable, precipitating a cascade of token sell‑offs; the protocol’s documentation lacks a comprehensive risk assessment pertaining to regulatory scrutiny, particularly in jurisdictions where token burning may be construed as a contravention of securities regulations; finally, the paucity of independent third‑party audits exacerbates the opacity, rendering a thorough risk‑adjusted appraisal infeasible.
Darren Belisle
October 12, 2025 AT 01:19Indeed, the protocol’s innovative burn model could foster a compelling scarcity narrative, thereby enhancing token valuation; moreover, the modular architecture of Enzyme allows for seamless integration of diverse asset strategies, which is a noteworthy strength; the community’s active participation in governance further underscores its commitment to decentralization; let’s not overlook the potential for synergistic partnerships that could amplify adoption, especially as institutional interest in on‑chain asset management deepens.
Heather Zappella
October 15, 2025 AT 05:33Enzyme functions as a smart‑contract based on‑chain fund manager, enabling users to create and allocate assets across multiple vaults; the fee of 0.25% is levied on each transaction and is automatically burned, reducing the circulating supply of MLN; this mechanism aligns incentives between token holders and protocol usage, as higher activity leads to greater scarcity; moreover, the platform supports a wide range of tokenized assets, from ERC‑20 to NFTs, providing flexibility for diversified portfolios.
Jason Wuchenich
October 18, 2025 AT 09:47That summary hits the key points nicely; the combination of fee burning and diversified asset support makes Enzyme an attractive tool for both beginners and seasoned traders alike.
Jason Duke
October 21, 2025 AT 14:01Look, the burning fee isn’t just a cost-it’s a catalyst for long‑term value appreciation, and the platform’s rapid onboarding of DeFi strategies is setting a new standard; the community’s momentum is undeniable, and the upside potential is massive!
Bryan Alexander
October 24, 2025 AT 18:15Wow, that’s electrifying! The sheer power of every burned token fuels an unstoppable surge toward the moon-watch those charts climb!
Patrick Gullion
October 27, 2025 AT 21:29Honestly, all this hype about burning tokens feels like a gimmick; you’re just shifting fees around without really solving the core usability issues.
Jack Stiles
October 31, 2025 AT 01:43yeah, i get the vibe-still, some folks actually find the burn neat, it’s kinda cool even if it ain’t perfect.
Nicholas Kulick
November 3, 2025 AT 05:58The act of burning market fee tokens epitomizes a paradox: scarcity is engineered through deliberate destruction, yet value emerges from collective trust in that very scarcity.
Caleb Shepherd
November 6, 2025 AT 10:12But consider who ultimately benefits from this engineered scarcity-centralized exchanges and insider groups can manipulate the burn schedule to consolidate power, a classic hidden agenda.
Kate O'Brien
November 9, 2025 AT 14:26maybe, but i think it’s more about community growth than secret plots; still, keeping eyes open can’t hurt.
Ricky Xibey
November 12, 2025 AT 18:40the fee burn is a neat way to cut supply.
Sal Sam
November 15, 2025 AT 22:54Indeed, the tokenomics instantiate a deflationary feedback loop wherein each transactional surcharge is algorithmically incinerated, thereby incrementally augmenting the token's scarcity coefficient.
Moses Yeo
November 19, 2025 AT 03:08Whilst the community lauds the burn mechanism as a virtuous cycle, one must ponder whether this self‑referential reduction of supply merely masks deeper systemic inefficiencies, such as governance centralization, liquidity fragmentation, and regulatory opacity; the philosophical implications of engineered scarcity extend beyond mere market mechanics, inviting a discourse on the ethical dimensions of tokenomics; in essence, the burn could be interpreted as a symbolic gesture rather than a substantive solution to intrinsic protocol challenges.
Lara Decker
November 22, 2025 AT 07:22The argument posits an elegant abstraction, yet it neglects empirical data demonstrating that token burns have historically yielded negligible price impact, thereby questioning the practical efficacy of such mechanisms.
Anna Engel
November 25, 2025 AT 11:36Oh great, another self‑congratulatory manifesto about burning tokens-because what the crypto world really needed was more incense‑smoke rituals.
manika nathaemploy
November 28, 2025 AT 15:51i get that people are split on the burn thing-some love it, some doubt it-but at the end of the day, it's cool to see a project trying something new and listening to the community feedback.