A quick look at Merlin Chain token utility and economics

24-04-18 15:35

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Original title: "Quick Reading of Merlin Chain Token Utility and Economics: How to Distribute and Release?"
Original translation: Karen, Foresight News

Today, Bitcoin Layer2 project Merlin Chain officially opened the native token MERL airdrop claim, and announced the MERL utility, token economics and distribution plan.

What is the utility of MERL?

As the native token in the Merlin Chain ecosystem, MERL utilities include:

· Governance:MERL token holders have the right to shape the future of Merlin Chain by voting on key proposals;

· Staking:MERL can be staked to enhance the security of Merlin Chain, ensure operational integrity and reliable performance;

· Network Fees:MERL can be used to pay transaction fees on Merlin L3;

· Collator Delegation:MERL token holders can actively participate in the operation of the network by delegating their holdings to a Collator or running their own Collator by staking MERL;

· Native Liquidity and Collateral:MERL can be used as a Merlin Native liquidity and collateral within the ecosystem, thereby achieving smooth transactions and supporting lending mechanisms.

How are MERL tokens distributed?

The total supply of MERL is 2.1 billion, of which 20% will be airdropped to participants in the Merlin’s Seal event, but half will be unlocked at the TGE, and the rest will be released over five months. MERL is currently open for token claims. After users claim MERL tokens, the team will airdrop tokens from 14:00 to 16:00 on April 19th, Beijing time. In addition, the tokens allocated to users by MERL did not have a cliff (fully locked) at the time of TGE, but will be gradually released later. The coins allocated to private investors, consultants, and teams will have cliffs ranging from 6 months to 24 months. The specific allocation and release are as follows:

Merlin's Seal Event Participants: 20% of tokens will be airdropped to Merlin's Seal event participants. The TVL of this event reached $3.6 billion, of which 91% came from the Bitcoin native community (including $1.75 billion in BTC and $980 million in BRC-20 assets). In terms of token release, the MERL airdrop will unlock 50% of the total amount of this airdrop (a total of 210 million tokens) at the TGE, and 25%, 12.5%, 6.25%, 3.125% and 3.125% can be unlocked each month in the next 5 months.

Public Sale: 1% of the total MERL supply will be allocated for the public sale (People's Launchpad). In terms of token release, 50% will be released at TGE in the first month, and 25%, 12.5%, 6.25%, 3.125% and 3.125% will be released each month in the next 5 months.

Private equity investors:15.23% of the total supply of MERL will be allocated to private equity investors, with two issuance schedules. Among them, in the A round private equity (accounting for 1.33% of the total supply), there is a 6-month cliff (completely locked), and then released in 18 months; in the B round private equity (accounting for 13.90% of the total supply), there is a 12-month cliff, and then released in 18 months.

Advisors:3.00% of the total supply of MERL will be allocated to advisors. This part of the tokens has a 6-month cliff, and then released in 30 months.

Team:4.20% of the total MERL supply will be allocated to the team, and these tokens will have a 24-month cliff and then be released over 24 months.

Community:16.57% of the total MERL supply will be allocated as rewards to the supporting community in future ecosystem initiatives. These tokens do not need to be fully locked up, but will be released over 48 months.

Ecosystem:40.00% of the total MERL supply will be allocated through ecosystem grants and incentives to promote a thriving application environment on Merlin Chain. By rewarding contributors, builders, and partners, Merlin Chain aims to accelerate the development of innovative applications that leverage Bitcoin's security and prosperity. Tokens allocated to the ecosystem do not need to be fully locked up, but will also be released over 48 months.

The following chart shows the release of MERL in the next four years: