BTC L2 star appears, taking a quick look at Merlin Chain token utility and economics

Compiled by: Karen, Foresight News

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

What does MERL do?

As the native token in the Merlin Chain ecosystem, MERL utility includes:

• Governance: MERL token holders have the right to shape the Merlin Chain by voting on key proposals Future;
• Staking: MERL can be pledged to enhance the security of Merlin Chain and 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 Collator or by staking MERL to run their own Collator;
• Native flow Liquidity and Collateral: MERL can be used as native liquidity and collateral within the Merlin ecosystem, enabling 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 Merlin’s Seal event participants, but half will be unlocked during TGE, and the rest will be released in five months. MERL is currently open for token applications. After users apply for MERL tokens, the team will conduct a token airdrop at 14:00-16:00 on April 19, Beijing time. In addition, the tokens allocated to users by MERL do not have cliff (complete lock-up) during TGE, but will be gradually released later. The coins allocated to private equity 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 the tokens will be airdropped to Merlin’s Seal event participants. The event generated $3.6 billion in TVL, 91% of which came from the Bitcoin-native community ($1.75 billion of BTC and $980 million of BRC-20 assets). In terms of token release, the MERL airdrop will unlock 50% of the total airdrop amount (a total of 210 million coins) during TGE, and 25%, 12.5%, 6.25%, 3.125% and 3.125% can be unlocked every month in the next 5 months.

Public Sale: 1% of the total supply of MERL 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 every month in the next 5 months.

Private investors: 15.23% of the total supply of MERL will be allocated to private investors, with two issuance schedules. Among them, in the Series A private placement (accounting for 1.33% of the total supply), there are 6 months of cliff (fully locked) and later released in 18 months; in the Series B private placement (accounting for 13.90% of the total supply), there are 12 1 month cliff, then released in 18 months.

Advisors: 3.00% of the total supply of MERL will be allocated to advisors. These tokens have a 6-month cliff and will be released in 30-month installments.

Team: 4.20% of the total supply of MERL will be allocated to the team. These tokens have a 24-month cliff and will be released in 24-month installments.

Community: 16.57% of the total supply of MERL will be allocated to supporting communities as rewards in future ecosystem plans. This part of the tokens does not need to be fully locked, but will be released in 48 months.

Ecosystem: 40.00% of the total supply of MERL will be distributed through ecosystem grants and incentives to promote a thriving application environment on the Merlin Chain. By rewarding contributors, builders, and partners, Merlin Chain’s goal is 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, but are released over 48 months.

The picture below shows the release status of MERL in the next four years:

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