The document also systematically discloses a wealth of details that cannot be ignored, such as legal prices, the pace of currency release, market arrangements and risk tips。
Original title: How do we view Monad as a market arrangement? The 18-page sales document contains these core messages
By KarenZ, Foresight News
With the entry of Monad (Mon) tokens into the countdown of Coinbase ' s public sales, its 18-page disclosure document became the market focus。
This document, provided by the Monad Foundation subsidiary, MF Services (BVI), Ltd., provides a comprehensive picture of Monad, from project structure to financing, from token allocation to sales rules, to transparent vendor information and security risk alerts, which provide investors with key information necessary for informed decision-making, and also reflects the transparency of the project ' s operations。
IN ADDITION TO KEY DATA SUCH AS “2.5 BILLION US DOLLARS FDV”, “0.025 US DOLLARS PER UNIT” AND “7.5% SHARE OF PUBLIC SALES”, WHICH HAVE BEEN WIDELY QUOTED BY THE MEDIA, THE DOCUMENT SYSTEMATICALLY DISCLOSES A LARGE AMOUNT OF DETAILS THAT CANNOT BE IGNORED, SUCH AS LEGAL PRICES, CURRENCY RELEASE RHYTHMS, MARKET ARRANGEMENTS AND RISK TIPS。
Of particular concern is the fact that the multi-dimensional risks associated with the sale of tokens, the Monad Foundation, Mon tokens, Monad projects and their lower-level technologies are systematically listed in a considerable amount of space. For users interested in participating in MONAD, it is recommended that the document be read in depth and that rational investment choices be made。
The Monad Foundation, through its subsidiary MF Services (BVI) Ltd., sells publicly on Coinbase. MF Services (BVI) Ltd. is a wholly owned subsidiary of the Monad Foundation registered in the British Virgin Islands and is the seller of this token sale. The Monad Foundation is the sole director of MF Services (BVI)。
• Core contributor to MonadThe Monad Foundation and Category Labs, Inc. (formerly Monad Labs, Inc.)。
• Monad FoundationIt is a Cayman Islands Foundation company that works to support the development, decentrization, safety and extension of the Monad network by providing a range of services such as community participation, business outreach, education for developers and users, and marketing services. Category Labs, based in New York, provides core development services to the Monad client。
• Three co-founders of MonadJames Hunsaker, CEO of Category Labs, Karen Hon and Eunice Giarta. The next two are the Monad Foundation co-GM。
• The Monad Foundation is supervised by a board of directors, consisting of Petrus Basson, Keone Hon and Marc Piano。
:: Timeline for financing:
Pre-Seed: US$ 1960 million raised in June-December 2022
Seed wheels: $22.6 million raised in January-March 2024
ROUND A: $220.5 MILLION IN MARCH-AUGUST 2024
:: In 2024, the Monad Foundation received a $9 million donation from Category Labs to cover operating expenses for 2024-2026. This donation is part of the $262 million received by Monad Labs in various rounds of financing。
• The time of sale of token currency: from 22:00 on 17 November to 10:00 on 23 November 2025。
:: PROPORTION OF COIN SALES: UP TO 7.5 BILLION MON (7.5 PER CENT OF TOTAL INITIAL SUPPLY). SALES PRICE: MON 0.025 PER ITEM. TOTAL SALES WOULD RAISE $187.5 MILLION。
• A minimum subscription of $100 and a maximum of $100,000 (Coinbase One member may receive a higher amount under the terms of the Platform)。
:: FDV: $2.5 BILLION
• Introduction of “bottom-up” over-subscription allocations: to ensure widespread distribution and prevent large-scale monopolization, the document discloses a mechanism called “bottom-up filling”. In the case of over-recruitment, a bottom-up fully-filled mechanism will be used to maximize the distribution of sales participants while limiting the concentration of assets of large buyers。
• Example: In the case of the sale of 1,000 tokens, three users (small / medium / high) applied for 100/500/100 each, and in the first round of distribution, each received 100 (the remaining 700, fully satisfied by the low level of user). In the second round of distribution, the remaining 700 were divided equally between medium and high users at 350. Final distribution: 100 small, 450 medium and 450 high。
MON CURRENCY ECONOMIC MODEL IS SHOWN IN THE FOLLOWING GRAPH:
The following figure shows the expected release of tokens:
Overall, on the first day of the public launch of the Monad main network, approximately 49.4 billion MON coins (49.4 per cent) were unlocked. Of these, at the time of the public launch of the Monad main network, it was expected that approximately 10.8 billion MON tokens (10.8 per cent of the initial total supply) would be brought into open circulation through public sales and air drop distribution, and about 38.5 billion MON tokens (38.5 per cent) would be allocated to ecosystem development, which, although not locked, would be managed by the Monad Foundation, which would provide grants or incentives at the strategic level over the next few years and would be entrusted under the Foundation ' s Certification Scheme。
And all investors, team members and coins from the Category Labs Treasury are locked on the first day of the public launch of the Monad main network and follow a clear timetable for unlocking and releasing. These tokens will be locked for at least a year. All locked tokens in the initial token supply are expected to be fully unlocked by the fourth anniversary of the open launch of the Monad main network (fourth quarter of 2029). Locked tokens cannot be pledged。
It is worth mentioning that the document shows that in the future, after the launch of the network, the Monad Foundation may continue to airdrop to stimulate the exploration and use of the Monad network and applications and protocols within the ecosystem。
:: INFLATION: 25 MON IS NEWLY GENERATED PER BLOCK AS A CERTIFYER/GUARANTOR INCENTIVE, WITH AN ANNUALIZED INFLATION OF ABOUT 2 BILLION (2 PER CENT OF THE INITIAL TOTAL SUPPLY) AIMED AT STIMULATING NETWORK PARTICIPANTS AND ENSURING NETWORK SECURITY。
Deflation: All base transaction costs (Base Fee) are destroyed. This mechanism offsets inflationary pressures in part by reducing the flow of supplies。
MF Services (BVI) Ltd. details the business cooperation and liquidity support programme to ensure good liquidity and transparency when tokens are listed。
MF Servicees (BVI) Ltd. has entered into loan agreements with five market dealers, namely, Cyant Arb, Auros, Galaxy, GSR, Wintermute, for a total of 160 million MON coins. Of these, CyantArb, Auros, Galaxy, GSR have a loan term of one month (which can be renewed monthly) and Wintermute has a loan term of one year. At the same time, the project introduced a third party, Coinwatch, to monitor the use of borrowed coins to ensure that funds were used to improve market liquidity rather than irregularities。
In addition, MF Services (BVI) may deploy up to 0.2% of the initial MON token supply as the initial liquidity of the DEX pool。
In the Web3 area, transparency and legitimacy of market arrangements have been at the heart of market concerns, and traditional projects often trigger a crisis of investor confidence due to the lack of disclosure of information about the market. And Monad's disclosure in Coinbase ICO, with transparency at its core, broke industry practice。
In addition, the monitoring by Coinwatch will ensure to the greatest extent possible that the currency of the loan is actually used for market purposes, demonstrating the importance that the project attaches to regulating operations。
4 Loans from market vendors are for a period of one month, renewed monthly, and only Wintermute provides a one-year commitment. This structure reflects Monad’s caution:
:: Flexibility: Short-term contracts allow the project to adapt flexibly to market conditions and may not be renewed at the end of the month if a marketer is underperforming。
Risk hedge: Wintermute ' s 1-year commitment provides a stable long-term basis for market liquidity。
This mix shows that the project seeks to ensure both initial liquidity and an excessive reliance on a particular marketer or commitment for a long period of time。
Compared to the total supply of 100 billion, only 0.16 per cent of the $160 million in market loans were made. This proportion is very small and may include:
:: Avoiding excessive market intervention
:: Control of dilution of tokens
• Market considerations: reliance on real transaction demand rather than excessive marketing to maintain price stability。
IN ADDITION, THIS CAUTION IS FURTHER CONFIRMED BY THE FACT THAT THE FOUNDATION WILL USE UP TO 0.2 PER CENT (200 MILLION UNITS) FOR INITIAL DEX LIQUIDITY。
However, as can be seen from the Monad 18-page sales document, the projecter struck a very conservative and even slightly cautious balance between " initial price discovery" and "permanent decentrization."。
These loans were valued at only $8.27 million at current pre-market prices of 0.0517. This may not be enough to support liquidity in the face of greater sales pressure。
IN ADDITION, THE FOUNDATION TAKES UP 0.2 PER CENT (200 MILLION UNITS) FOR INITIAL DEX MOBILITY AND SAYS "MAY" RATHER THAN "MUST". SUCH A SCALE ONLY ENSURES THAT THE OPENING IS NOT INSTANTANEOUS AND DOES NOT SUPPORT CONTINUOUS DEPTH. AT THE SAME TIME, THE AUTHORITIES HAVE POINTED TO RISKS SUCH AS DEX AND CEX LIQUIDITY, AMOUNTING TO EARLY EXEMPTION。
FOR INVESTORS, THIS MEANS THAT MON TOKENS MAY BE SUBJECT TO HIGHER VOLATILITY IF THEY ARE NOT SUPPORTED BY SUFFICIENT NATURAL TRADING DEPTHS AND ORGANIC PURCHASES. IT WOULD THEREFORE BE WISE, IN ADDITION TO FOCUSING ON THE BASIC ASPECTS OF THE PROJECT AND THE LONG-TERM VISION, TO REMAIN VIGILANT ABOUT THE INITIAL LIQUIDITY AND PRICE DISCOVERY MECHANISMS OF THE MARKET。