Key facts
- Monad Foundation offered a buyback program for locked MON tokens to select early investors.
- The program aimed to provide liquidity for investors with changing needs.
- Up to $60 million was allocated for the buyback, but most investors declined.
- Tokens repurchased by the foundation will remain locked according to their original vesting schedule.
- Monad is an Ethereum-compatible blockchain, and its MON token is used for transaction fees and network security.
The Monad Foundation recently concluded a program designed to offer liquidity to select early investors by allowing them to sell their locked MON tokens at a discount. The foundation had allocated up to $60 million for these potential buybacks. However, the foundation reported that the vast majority of investors approached declined the offer, signaling a strong commitment to the long-term prospects of the Monad network.
Any tokens repurchased by the foundation will remain subject to their original vesting schedules, meaning this buyback initiative does not accelerate the release of tokens into the market. Monad, which is building an Ethereum-compatible blockchain, uses its native MON token for transaction fees and network security. Early investors were allocated approximately 19.7 billion MON, representing nearly 20% of the total supply. These tokens were locked upon the launch of Monad's public network in November and are scheduled to unlock over a four-year period.
Despite a recent surge in decentralized finance activity on the Monad network, with total value locked climbing by nearly 150% to approximately $895 million in about six weeks, the MON token's price has lagged. On Tuesday, MON was trading around $0.021, below its public sale price of $0.025. The foundation stated that the buyback program was intended to provide liquidity for investors whose circumstances had changed, while ensuring that the remaining holder base remained aligned with the project's long-term goals.