Monad, an Ethereum rival, offered early investors up to $60 million to cash out. Almost all said no
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Summary
The Monad Foundation conducted a program to buy locked MON tokens from select early investors at a discount, offering up to $60 million. Despite this, almost all early investors declined the offer. Any repurchased tokens remain locked according to their original vesting schedule, meaning they do not enter the market prematurely.
Why it matters
The offer was designed to provide liquidity to early investors who might want to exit before their tokens unlocked while maintaining alignment among long-term holders. This attempt at balancing liquidity and token supply management highlights challenges in supporting investor needs without disrupting market dynamics.
Key context
Monad is a newer blockchain compatible with Ethereum, using its MON token for transaction fees and network security. Early investors were allocated about 19.7 billion MON tokens locked for a year after the public network launch in November, with gradual monthly unlocks over four years. November is the first time these early investors can normally sell their tokens. MON’s market price has lagged compared to last year’s public sale price, despite significant growth in decentralized finance (DeFi) activity on the Monad network.
Key numbers and entities
The Monad Foundation offered up to $60 million to buy back locked MON tokens from early investors. Around 19.7 billion MON tokens, nearly 20% of the original supply, were allocated to early investors and locked. MON traded at approximately $0.021 on Tuesday, down about 16% from $0.025 during last year's public sale. Roughly 11.8 billion MON tokens are currently circulating, valuing the token market at about $250 million. Total value locked in Monad-based DeFi apps increased to $895 million from $360 million in about six weeks.
What remains unclear
The Foundation has not disclosed the exact buyback price, the total amount spent from the $60 million budget, or the number of investors who participated. Without this information, it is uncertain how steep the discount was and why nearly all investors rejected the offer. The source flags these as open questions.