MKL Tokenomics

Overview

MKL, the utility token powering Merkle Trade, encourages sustained dedication and contributions to protocol expansion. By staking, users can earn protocol fees and engage in governance, granting them influence over pivotal decisions. Our tokenomics is designed to prioritize the Merkle community, ensuring maximum benefits for MKL holders as the protocol advances.

MKL Token Addresses

MKL Coin V1: 0x5ae6789dd2fec1a9ec9cccfb3acaf12e93d432f0a3a42c92fe1a9d490b7bbc06::mkl_token::MKL

MKL FA Token V2: 0x878370592f9129e14b76558689a4b570ad22678111df775befbfcbc9fb3d90ab

Token Distribution

The maximum supply of MKL is limited to 100,000,000 tokens, distributed according to the following breakdown:

• Community Incentives: 46,000,000 MKL (46%) This comprises incentives prior to the TGE, intended to acknowledge and reward early supporters. Additionally, ongoing incentive programs such as trading and MKLP incentives will be open to active protocol participants. Up to 9,500,000 MKL (9.5% of total supply) will be unlocked at TGE with the remaining tokens released over 6 years to encourage sustained user engagement.

• Growth Fund: 17,000,000 MKL (17%) For ongoing growth and expansion of the Merkle Trade ecosystem, funds will be allocated to strategic partnerships, marketing, liquidity provision, and other growth-related initiatives. Up to 4,000,000 MKL (4% of total supply) will be unlocked at TGE with the remaining tokens released over next 4 years.

• Core Team: 20,000,000 MKL (20%) Allocated to the core development team for their ongoing commitment, subject to a six-month cliff and 36-month linear vesting to align with the protocol’s long-term success.

• Early Backers: 14,000,000 MKL (14%) Allocated to the initial investors who provided crucial backing during the early stages of protocol development, with distribution subject to a six-month cliff and a 24-month linear vesting period to align with the protocol’s long-term success. Furthermore, a portion of the allocation is earmarked for future investors, ensuring availability for upcoming investment rounds.

• Advisors: 3,000,000 MKL (3%) Assigned to advisors for their guidance during protocol development, subject to a six-month cliff and 24-month linear vesting for protocol success alignment.

Token Unlock Schedule

Upon launch, there will be a circulating supply of up to 13,500,000 MKL (13.5%). This includes MKL holders from our TGE, pre TGE incentives, and the Growth Fund designated for strategic partnerships, marketing, liquidity provision, and other initiatives. The majority of the new MKL supply will become available through incentives (from the community incentives allocation) in the form of MKL emissions. These emissions will be active from launch and will be gradually unlocked over a period of 6 years post-TGE.

The detailed yearly unlock supply is as follows.

MKL Unlock Schedule Breakdown

Emission plays a critical role in tokenomics, striking a balance between preventing dilution and keeping a consistent token supply. Let’s outline how it will unfold over the course of the next 6 years.