Recently, the overall cryptocurrency market has been sluggish, but the Layer 1 public chain project Monad continues to shine. According to news from Monad's official X account, its token sale on Coinbase has officially completed, raising a total of $269 million, with 85,820 participants.

The financing also reflects its global attention. Scott Shapiro, Coinbase's Product Director, mentioned in an interview that the initial public offering was quickly subscribed within hours of opening, indicating strong demand from retail investors. Previously, Monad had completed multiple rounds of financing, totaling over $225 million, which will be used for ecological development and expansion.

On Monday (November 24), Monad's mainnet officially launched. This article will outline everything you need to know about the Monad project.

Monad is a high-performance Layer-1 blockchain that is fully compatible with the Ethereum Virtual Machine (EVM), meaning existing Ethereum smart contracts and ecological tools can be directly migrated to Monad without significant modifications. The project aims to resolve the contradictions among throughput, decentralization, and security in traditional blockchains, becoming a new generation of high-performance blockchain infrastructure. Monad is developed by the Monad Labs team, whose core members come from the traditional financial giant Jump Trading, possessing rich experience in high-frequency trading system development.

In terms of technical architecture, Monad introduces parallel and asynchronous execution mechanisms, allowing it to handle a large number of non-conflicting transactions simultaneously, significantly enhancing transaction throughput. Its core database, MonadDB, is designed for high-performance state management, optimizing node performance through SSD storage, lowering hardware thresholds, and enabling more users to participate in network validation and ecological maintenance.

On the consensus layer, Monad adopts MonadBFT, an optimized version of the HotStuff protocol, supporting rapid transaction finality, which can be completed in about 1 second, and has defenses against tail-forks, thereby enhancing network security and fairness. Additionally, Monad's design also considers MEV risk resistance, providing a fairer environment for transaction execution.

The native token of Monad is MON, with a total issuance of 10 billion tokens. In terms of distribution, the token structure of MON is relatively balanced: 38.5% is allocated for ecological development to fund developers, community incentives, and validator delegation programs; 27% is allocated to team members; 19.7% to early investors; 7.5% for public offerings; 4% reserved for the treasury; and 3.3% for airdrops.

At the mainnet launch, approximately 10.8% of the tokens will enter circulation, while more than half of the tokens are locked at the start, and this portion of locked tokens cannot be used for staking in the short term.

Regarding token unlocking, team tokens have a one-year cliff period, followed by gradual linear unlocking. In terms of the inflation mechanism, the MON network issues tokens to validators and stakers through block rewards, for example, issuing 25 MON per block, with an annual inflation rate of about 1.58%. Additionally, the protocol adopts the EIP-1559 model: the base transaction fees will be burned, creating deflationary pressure on MON during periods of high network usage.

The competition in the entire public chain track has entered a heated stage, and this year, the market landscape has also shown certain differentiation characteristics. Among them, Solana remains one of the strongest competitors in high-performance public chains. Its active TPS, on-chain transaction volume, and active wallet numbers all maintain industry leadership, demonstrating significant advantages in high throughput and low fee scenarios, forming a relatively mature ecological closed loop. Meanwhile, Ethereum is also experiencing structural pressure from competition. As Layer-2 networks and new public chains continue to siphon users, Ethereum's transaction fee revenue has declined, on-chain activity faces challenges, and the pace of ecological updates has been forced to accelerate.

In this context, although Monad positions itself with "high performance and EVM compatibility" as its core selling point, the market's sensitivity to performance narratives has significantly decreased. High TPS is no longer a scarce indicator; for new public chains to truly break through, the key lies not in the technical indicators themselves, but in how to attract developers to continuously deploy, how to build a stable application ecosystem, and how to establish long-term user retention and value closed loops.

Although Monad officially launched its mainnet on Monday, and the market is full of expectations for its prospects, multiple factors indicate that the MON token may face downward price pressure after airdrops and exchange listings.

Affected by the overall decline in the cryptocurrency market

The MON token airdrop coincides with a period of overall sluggishness in the cryptocurrency market. Recently, various mainstream cryptocurrencies, including Bitcoin, Ethereum (ETH), and Solana (SOL), have seen their market values decline by double digits, with the total market capitalization of the entire cryptocurrency industry evaporating by over $1.2 trillion. Market panic is high, with the crypto fear and greed index dropping to its lowest point this year, while large-scale capital outflows have occurred in crypto ETFs.

Poor historical performance of newly issued tokens

From past airdrop experiences, the prices of new tokens typically decline significantly after launch. For example, Keeta's price has dropped 85% from its peak after the airdrop, currently standing at only $0.30. This project is similar to Monad, also focusing on high-performance trading and EVM compatibility. The WLFI token has dropped 54% since its launch, and Somnia also experienced a brief rise after the airdrop, only to fall to its historical low, evaporating millions in market value. Analysts believe that the sharp decline in Layer-1 and Layer-2 token airdrops is partly due to insiders cashing out, and partly due to oversupply and market competition pressure.

High internal token holding ratio, limited public benefits

Monad's token economic model shows that the team will receive 27% of the token allocation, investors account for about 20%, the treasury controlled by the team, Category Labs, accounts for 4%, while the public can only obtain 7.5%.

Monad has entered the Layer-1 track with a strong stance as a high-performance EVM-compatible chain, attracting global attention with its large financing scale, institutional backing, and Jump Trading background. Its parallel execution architecture, low-latency consensus, and developer-oriented optimization design give it a certain competitive edge technically. However, the public chain market is no longer in the incremental era of previous years; competition from Solana, Ethereum, and numerous new Layer-1s has made performance narratives no longer scarce. Whether the ecosystem can grow rapidly, whether developers will truly migrate, and whether users are willing to stay will be the key factors determining the success or failure of the Monad project.

Related: Coinbase launches token sale platform, with Monad as the first project

Original article: “A Clear Look at Monad: From Technical Highlights to Real-World Pressures, the True Test for This New Public Chain Is Only Just Beginning”

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