The MERL token is the native cryptocurrency of the Merlin Chain ecosystem, supporting various aspects of network operation as a multi-purpose asset. From governance to staking, transaction fees, and ecosystem incentives, the MERL token ensures the security, operational efficiency, and sustainable development of the network.

Governance

The MERL token plays an important role in the governance structure of the Merlin Chain ecosystem, supporting a decentralized decision-making model. MERL token holders can vote on proposals that impact network operations and future directions, including network upgrades, protocol parameter adjustments, and resource allocation for ecosystem projects. This governance model ensures that the evolution of Merlin Chain is community-driven and reflects the collective will of participants.

Staking

By staking MERL tokens, participants contribute to the security and stability of the network, preventing threats such as Sybil attacks by using tokens as collateral. In return, stakers receive additional MERL token rewards.

This staking mechanism not only enhances the security of the network but also aligns the interests of participants with the long-term success of Merlin Chain. If a participant engages in malicious behavior, the staked tokens may be slashed, ensuring that only honest participants can contribute to the operation of the network.

Money Laundering

MERL tokens are used to pay for transaction fees on the Merlin network, especially playing a crucial role in future Layer 3 enhancements. This function is essential for the smooth operation of the network, not only promoting transactions but also providing sustained demand for the tokens. By using MERL tokens to pay for transaction fees, the economic incentive mechanism for maintaining network operations and development is ensured, allowing participants' contributions to receive corresponding rewards.

Ecological incentives and funding

40% of the total supply of MERL tokens is allocated for ecological incentives and funding, supporting the growth and innovation of the Merlin Chain ecosystem. Through programs like "Merlin's Adventure," these funds support developers and teams who are developing projects on the Merlin Chain.

These projects encourage the development of new applications and services by providing funding support, technical assistance, and networking opportunities, thereby expanding the utility and coverage of Merlin Chain.

Tokenomics & Distribution

The total supply of MERL tokens is limited to 2.1 billion, which is distributed across multiple categories and has different lock-up plans. The specific allocation is as follows:

• 20% is allocated to Merlin's Seal participants and will be gradually released over five months.
• 1% sold through People's Launchpad public sale.
• 15.23% is distributed to private investors, with a tranche release plan after unlocking.
• 3% is allocated to advisors with a 30-month lock-up period.
• 4.2% is allocated to the team, with a lock-up period of 24 months.
• 16.57% for future ecosystem programs and community rewards.
• 40% is used for ecological funding and incentives.

These allocations reflect a strategic approach, ensuring that token allocations support the growth, stability, and long-term viability of the network. The lock-up program prevents a large and sudden influx of tokens into the market, thus avoiding a potential impact on the value of the token.

Highlights

• As a governance token, MERL holders can vote on network proposals.
• Staking MERL enhances network security and aligns the incentives of participants with the success of the network.
• MERL is used to pay transaction fees within the network, supporting operational costs.
• A significant proportion of MERL is allocated for ecological incentives to promote the growth and innovation of the network.
• MERL's tokenomics design ensures a balanced distribution, supporting the long-term stability and growth of the network.