Medals are independant from mmr. Your can't derank in medals as far as I understand and experienced it.
It keeps your highest point. I honestly dont see the point in medails if its not an accurate representation of your CURRENT skill. For all i know you could have been tryharding the first week of the new ranking system and after that not give a shit and lose all your games.
I kind of get what valve is trying to do, give incentive to tryhards to move up the ranks but not penalize the casuals to lose by deranking them. A trade off.
Medals show your potential, mmr shows your current form. You just have to understand it. Which is hard because no one really explains anything :P
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SO as the new mmr system dropped my mmr by 400(mother***ing valve) will my medal get derank too if i lose? cuz the system is the same of +25 -25 if i lose a certain amount of games will my medal become low level too ??