Today, Bitcoin Layer2 project Merlin Chain officially opened the airdrop of its native token MERL and announced the MERL utility, token economics and distribution plan.
What is the use of MERL?
As the native token in the Merlin Chain ecosystem, MERL’s utilities include:
Governance: MERL token holders have the power to shape the future of Merlin Chain by voting on key proposals;
· Staking: MERL can be staked to enhance the security of Merlin Chain, ensuring operational integrity and reliable performance;
Network fees: MERL can be used to pay for transactions 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 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 participants of the Merlin's Seal event. However, half will be unlocked at TGE, and the rest will be released over five months. MERL is currently open for token applications. After users apply for 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 will not have a cliff (fully locked) at TGE, but will be gradually released afterwards. The coins allocated to private investors, consultants, and teams will have cliffs ranging from 6 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 TVL of this event reached 3.6 billion US dollars, of which 91% came from the Bitcoin native community (including 1.75 billion US dollars of BTC and 980 million US dollars of 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 time of 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 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 each month in the next 5 months.
Private placement investors: 15.23% of the total supply of MERL will be allocated to private placement investors, with two issuance schedules. In Series A private placement (1.33% of the total supply), there is a 6-month cliff (fully locked), which is then released over 18 months; in Series B private placement (13.90% of the total supply), there is a 12-month cliff, which is then released over 18 months.
Advisors: 3.00% of the total MERL supply will be allocated to advisors. These tokens will have a 6 month cliff and will be released over 30 months.
Team: 4.20% of the total MERL supply will be allocated to the team, these tokens have a 24 month cliff and are then released over 24 months.
Community: 16.57% of the total MERL supply will be allocated to support the community as rewards in future ecosystem initiatives. This portion of tokens does not need to be fully locked, but will be released over 48 months.
Ecosystem: 40.00% of the total supply of MERL 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, but are released over 48 months.
The following chart shows the release of MERL in the next four years:
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