Monad (MON)

Tokenomics & Utility

What MON does and how it was distributed

MON has two everyday network jobs. Users spend it to pay transaction fees, including fees for sending assets or interacting with smart contracts. Validators stake MON to participate in securing the network, while other holders can delegate tokens to validators. Staking rewards are paid as new MON enters the supply. (static-assets.coinbase.com)

The initial supply was 100 billion MON. Its launch allocation was divided among ecosystem development (about 38.5%), team members (27%), investors (19.7%), the public sale (7.5%), the Category Labs treasury (about 4%), and an airdrop (3.3%). “Initial supply” matters here: the network also creates block rewards. Its fee system burns the base portion of transaction fees, removing those coins from supply. New issuance and fee burning therefore act in opposite directions. (static-assets.coinbase.com)

An allocation being unlocked does not mean every coin is held by the public. At launch, ecosystem-development tokens were unlocked but managed by the Monad Foundation for uses such as grants, incentives, and validator delegation. Team, investor, and Category Labs treasury allocations were locked for at least the first year after launch and follow further release schedules. Locked tokens cannot be staked. These distinctions help explain how the project funds development while tokens move into use over time. (static-assets.coinbase.com)

MON also has a role in network decisions through validator delegation. Protocol changes take effect when enough stake-weighted validators adopt updated software. The project’s token disclosure describes no direct onchain proposal vote for MON holders. Holding the coin therefore differs from holding a share of the foundation or Category Labs. (static-assets.coinbase.com)