Monad token economy revealed! 50.6% locked, 7.5% supply for initial release on U.S. exchanges

Monad releases token economic model, using the new token listing platform of the largest compliant cryptocurrency exchange in the United States for the first public sale of MON tokens. The total supply is 100 billion tokens, with 50.6% (50.6 billion) locked at mainnet launch, and 7.5% available through exchange public sale at $0.025 per token. The token sale begins at 9:00 AM Eastern Time on November 17 and runs until November 22.

Details of Monad Token Sale Platform Launch

(Source: X)

As previously reported by The Block, the high-performance Layer 1 will start its token sale at 9:00 AM Eastern Time on November 17. This token sale, conducted on the platform of the largest compliant crypto exchange in the US, will cover over 80 countries including the US, and will continue until 9:00 PM Eastern Time on November 22. Approximately 7.5% of the total supply will be offered through the US’s largest compliant crypto exchange, at a price of $0.025 per MON, with a minimum bid of $100 and a maximum bid of $100,000.

On Monday, the US’s largest compliant crypto exchange launched a new “end-to-end token sale platform,” aimed at providing retail traders with a channel to participate in initial coin offerings (ICOs). Recently, this exchange acquired Echo and Sonar crowdfunding platforms created by well-known crypto trader and commentator Jordan “Cobie” Fish, investing about $400 million. Monad becomes the first project on this new platform, demonstrating the US’s largest compliant crypto exchange’s emphasis on this project.

“The token sale on the US’s largest compliant crypto exchange provides the Monad Foundation with a platform to conduct a public sale through its subsidiary MF Services (BVI), Ltd., allowing early purchase of MON tokens before the public mainnet launch on November 24,” the Monad Foundation stated, also revealing its mainnet launch date and tokenomics for the first time.

This timing arrangement means investors participating in the token sale will acquire tokens before the mainnet launch, though these tokens may not be tradable or transferable until then. The 7.5% public sale proportion is relatively high, indicating Monad’s intention to widely distribute tokens to build a community base. The $0.025 price implies a fully diluted valuation (FDV) of $25 billion, which is within a reasonable range for emerging Layer 1 projects.

Tokenomics Model: 100 Billion Total Supply and Distribution Structure

The total supply cap of MON tokens is 100 billion, allocated as follows: 38.5% for ecosystem development, 27% for the team, 19.7% for investors, 4% as Category Labs treasury reserves, 3.3% for airdrops, and 7.5% through the public sale on the US’s largest compliant crypto exchange.

The largest allocation (38.5%, or 38.5 billion tokens) for ecosystem development indicates Monad’s commitment to long-term ecosystem expansion. “The Monad Foundation will manage these resources over the coming years, distributing grants or rewards in strategic areas, and delegating according to the Foundation’s validator delegation plan,” the team wrote. This distribution approach is similar to successful Layer 2 projects like Optimism and Arbitrum, which also allocate large token portions for ecosystem incentives.

The team’s 27% share is moderate within the industry, providing sufficient motivation without excessive centralization. The 19.7% allocated to investors reflects Monad’s fundraising history. Founded in 2022, Monad raised $225 million to build an EVM-compatible network capable of matching Solana’s speed and Ethereum’s decentralization. This funding came from top crypto VCs including Paradigm, Electric Capital, and Dragonfly Capital.

Token Distribution Structure

Ecosystem Development: 38.5% (38.5 billion), for grants, rewards, and validator delegation

Team: 27% (27 billion), subject to vesting schedule

Investors: 19.7% (19.7 billion), with lock-up and unlock plans

Airdrops: 3.3% (3.3 billion), unlocked at issuance

Public Sale: 7.5% (7.5 billion), via the US’s largest compliant crypto exchange

Category Labs Treasury: 4% (4 billion), locked and subject to vesting

50.6% Lock-up Mechanism and Long-term Alignment Design

According to the Monday release of Monad’s tokenomics, the 3.3% allocated for airdrops and the 7.5% for public sale will be unlocked, along with a large portion reserved for ecosystem development. However, “all tokens for investors, team members, and Category Labs treasury will be locked on the first day of Monad’s public mainnet launch and subject to predetermined unlock and vesting schedules to ensure long-term alignment with the project’s success.”

From the date of Monad’s token issuance, 50.6% (506 billion tokens) will be locked. These tokens cannot be staked. Monad Labs has been renamed Category Labs. This large-scale lock-up mechanism is relatively rare in the industry, highlighting the team’s focus on reducing initial selling pressure. The 50.6% lock-up means the initial circulating supply will be approximately 49.4 billion tokens, mostly controlled by the ecosystem foundation, with only about 10.8% (airdrop 3.3% + public sale 7.5%) freely tradable in the market.

This design creates scarcity and price stability. When team and investor tokens are locked, they cannot cash out immediately at mainnet launch, reducing the common “dump at launch” phenomenon. The specific vesting schedule details have not been disclosed but are typically linear over 1 to 4 years.

Locked tokens that cannot be staked are also noteworthy. In PoS blockchains, staking usually offers additional rewards, but Monad chooses not to allow locked tokens to participate in staking, possibly to ensure network decentralization in the early stages and prevent the team and investors from controlling governance through large stakes.

Monad’s Technical Features and Market Positioning

Founded in 2022, Monad raised $225 million to build an EVM-compatible network that matches Solana’s speed and Ethereum’s decentralization. The ambitious goal is to combine three often conflicting features: EVM compatibility (developer-friendly), high performance (Solana-level TPS), and decentralization (Ethereum-level node distribution).

Monad’s core innovation is its parallel execution engine. Traditional EVM chains like Ethereum use sequential execution, processing transactions one by one. Monad employs optimistic parallel execution, allowing multiple transactions to be processed simultaneously, with conflicts detected and rolled back if necessary. This technology claims to achieve 10,000 TPS, far surpassing Ethereum’s 15-30 TPS. The mainnet is scheduled to launch on November 24, when these technical promises will be tested by the market.