Monad announces tokenomics model: over 50% locked at TGE, 3.3% allocated for airdrops.

On November 10, 2025, high-performance Layer 1 blockchain Monad officially announced its mainnet launch date and token economic model. Its native token, MON, will be the inaugural project on Coinbase’s new token issuance platform. The total supply of MON is 10 billion tokens, of which 7.5% will be publicly sold on the Coinbase platform from November 17 to 22 at a price of $0.025 per token. The individual subscription limit ranges from $100 to $100,000.

At project launch, 50.6% (5.06 billion) of the tokens will be locked, including allocations for the team (27%), investors (19.7%), and the Category Labs treasury (4%), all with scheduled unlock and vesting timelines. The ecosystem development fund (38.5%) will be managed long-term by the Monad Foundation through a validator delegation program.

Analysis of Monad Token Distribution and Lock-up Mechanism

Monad’s tokenomics reflect the project’s emphasis on long-term ecosystem development, notably with an initial lock-up ratio of up to 50.6%. Specifically, out of the 10 billion MON tokens, 38.5% are reserved for ecosystem growth, 27% allocated to the team, 19.7% to investors, 4% to the Category Labs treasury (the entity renamed from Monad Labs), and only 7.5% are available through the public sale, with 3.3% allocated as airdrops.

According to a statement from the Monad Foundation, “All tokens held by investors, team members, and the Category Labs treasury will be locked on the first day of the Monad mainnet launch and will follow a predetermined unlock and vesting schedule to ensure long-term alignment with the project’s success.”

This design significantly reduces initial circulating supply. Based on the public sale price, the initial market cap is approximately $187.5 million. For a Layer 1 project aiming to challenge Solana’s speed and Ethereum’s decentralization, with a fundraising target of $225 million, this valuation is relatively conservative.

Coinbase Launch and Platform Innovation

The MON token sale marks Coinbase’s debut of its new “end-to-end token sale platform,” a milestone among major US cryptocurrency exchanges. The platform will be accessible to users in over 80 countries, with a minimum subscription of $100 and a maximum of $100,000, all at a fixed price of $0.025 per MON, differing from traditional auction models.

This innovation is driven by Coinbase’s acquisition of Echo and Sonar crowdfunding platforms, which together raised approximately $400 million. These platforms were created by well-known crypto trader and commentator Jordan “Cobie” Fish. The Monad Foundation notes, “Coinbase’s token sale provides Monad Foundation with a platform through its subsidiary MF Services Ltd. to conduct the public sale of MON, enabling investors to purchase MON directly before the public mainnet launch on November 24.” This arrangement allows retail investors to participate in early-stage investments of high-quality blockchain projects under conditions similar to institutional investors.

Key Data of MON Token Economics

• Total Supply: 10 billion MON
• Initial Lock-up Ratio: 50.6% (5.06 billion)
• Coinbase Public Sale: 7.5% (750 million), $0.025 per token
• Subscription Range: $100 - $100,000
• Ecosystem Development Fund: 38.5% (3.85 billion)
• Team Allocation: 27% (2.7 billion)
• Investor Share: 19.7% (1.97 billion)
• Category Labs Treasury: 4% (400 million)
• Airdrops: 3.3% (330 million)

Technical Positioning and Market Competition Analysis

Founded in 2022 with $225 million in funding, Monad is an EVM-compatible network targeting core pain points in the current Layer 1 space. The project claims to achieve 10,000 transactions per second through parallel execution and ultra-optimized EVM, while maintaining full compatibility with Ethereum. If realized, this performance would surpass Solana’s measured throughput without sacrificing decentralization.

In terms of market competition, Monad enters a field with several strong players: Solana dominates high-frequency trading with its high speed and low fees; Ethereum maintains its DeFi leadership through a vast developer ecosystem and Layer 2 scaling solutions; and emerging Layer 1s like Aptos and Sui each have unique features.

Monad’s differentiation lies in its commitment to EVM compatibility—meaning existing Ethereum dApps can migrate with minimal cost and enjoy significant performance improvements. However, success hinges on attracting enough developers to build native applications, which is why the ecosystem development fund accounts for 38.5% of tokens.

Investment Value and Risks

Investors considering participating in the MON public sale should evaluate potential returns against risks. The fully diluted valuation (FDV) based on the public sale price is approximately $2.5 billion. Compared to other Layer 1 projects, this valuation is reasonable—Solana’s FDV is around $150 billion, and Avalanche’s is about $40 billion.

The core team comes from Jump Trading, bringing extensive experience in high-frequency trading and blockchain development. Nonetheless, risks include fierce competition among Layer 1 chains; historically, most Layer 1s struggle to maintain market share beyond Ethereum. Additionally, with team and investor allocations totaling 46.7% and gradual unlocks post-launch, there could be selling pressure. The actual performance of the mainnet remains to be proven.

Investors should consider MON as part of a high-risk, high-reward portfolio, with a suggested allocation of no more than 3-5% of total investments. Monitoring on-chain metrics and developer activity after launch is crucial.

Conclusion

Through a carefully designed tokenomics model and Coinbase’s platform debut, Monad demonstrates its ambition to build a high-performance, EVM-compatible chain. The high initial lock-up ratio and long-term vesting provide stability, while its technical strengths and market positioning will determine whether it can stand out in the competitive Layer 1 landscape. Rational assessment of its potential and risks is essential, along with preparedness for market fluctuations during its early stages.