Tokenomics

Overview Distribution and Vesting

The total supply of MERL will be 2,100,000,000 and will become accessible over four years, starting at the time of the Token Generation Event (TGE). The initial four-year post-TGE allocation of the total supply of MERL is as follows:

Distribution

Category	Percentage of Total Supply	Description
Merlin’s Seal Participants	20.00% (420,000,000 MERL)	Airdropped to participants in Merlin’s Seal event.
Public Sale	1.00% (21,000,000 MERL)	Allocated for the public sale via the People’s Launchpad.
Private Investors	15.23% (319,830,000 MERL)	Allocated to private investors in two rounds: A round (1.33%) and B round (13.90%).
Advisors	3.00% (63,000,000 MERL)	Allocated to advisors.
Team	4.20% (88,200,000 MERL)	Allocated to the team.
Community	16.57%(348,000,000 MERL)	Allocated for future ecosystem plans and community rewards.
Ecosystem	40.00%(840,000,000 MERL)	Allocated for ecosystem grants and incentives to foster a thriving application environment on Merlin Chain.

Vesting Schedule

Category	Initial Unlock	Release Schedule
Merlin’s Seal Participants	50% at TGE	Remaining released over 5 months: 25%, 12.5%, 6.25%, 3.125%, 3.125%
Public Sale	50% at TGE	Remaining released over 5 months: 25%, 12.5%, 6.25%, 3.125%, 3.125%
Private Investors	None	A round: After 6-month cliff, released over 18 months. B round: After 12-month cliff, released over 18 months.
Advisors	None	Released over 30 months after cliff.
Team	None	Released over 24 months after cliff.
Community	None	Released over 48 months.
Ecosystem	None	Released over 48 months.

Utility

MERL is the native token of the Merlin Chain ecosystem, playing a crucial role in governance, security, and the overall development of the ecosystem. Its multifaceted utility includes:

Governance

MERL token holders have the right to participate in the decision-making process for significant proposals within the Merlin Chain ecosystem through voting. This community-driven governance ensures that the ecosystem evolves in a manner that reflects the collective interests of its participants.

Staking

MERL can be staked to enhance the security of Merlin Chain. Staking MERL helps maintain the integrity and reliability of the network operations by preventing Sybil attacks, aligning stakers with the success of the ecosystem, and enabling slashing to penalize malicious actors. By staking MERL, participants contribute to the network's robustness and resilience.

Transaction Fees

MERL can be used to pay for transaction fees on the Merlin Layer 3 (L3). This utility provides a seamless and efficient way to facilitate transactions within the ecosystem, making MERL an integral part of the network's economic activities.

Delegating to Consensus Nodes

MERL token holders can delegate their tokens to consensus nodes or stake MERL themselves to operate a consensus node. This delegation process supports the decentralization and scalability of the Merlin Chain, ensuring a secure and efficient consensus mechanism.

Native Liquidity and Collateral

MERL can serve as native liquidity and collateral within the Merlin ecosystem. This functionality promotes smooth transactions and supports lending mechanisms, thereby enhancing the liquidity and financial stability of the network.

Summary

The multifold utility of MERL underpins its critical role in the Merlin Chain ecosystem, ensuring robust governance, security, and transactional efficiency. Through staking, transaction fee payments, governance participation, and serving as liquidity and collateral, MERL is pivotal to the ongoing success and development of Merlin Chain.