MKL Tokenomics and Roadmap

5 min readMar 22, 2024

As Merkle Trade continues to innovate a new genre of gamified perpetuals trading, we’re excited to share key updates and developments regarding the protocol’s governance token with our community. Our journey is marked by careful planning and strategic decisions, ensuring that we deliver the best to early supporters. In this spirit, we are introducing the MKL token and its detailed tokenomics.

Introducing MKL

What is MKL exactly?

MKL, the utility token powering Merkle Trade, encourages sustained dedication and contributions to protocol expansion. By staking, users can earn protocol fees and engage in governance, granting them influence over pivotal decisions. We will soon provide comprehensive details on utilities and staking for transparency. Our tokenomics is designed to prioritize the Merkle community, ensuring maximum benefits for MKL holders as the protocol advances.

Token Distribution

The maximum supply of MKL is limited to 100,000,000 tokens, distributed according to the following breakdown:

Community Incentives: 46,000,000 MKL (46%)
This comprises incentives prior to the TGE, intended to acknowledge and reward early supporters. Additionally, ongoing incentive programs such as trading and MKLP incentives will be open to active protocol participants. Up to 8,000,000 MKL (8% of total supply) will be unlocked at TGE with the remaining tokens released over 6 years to encourage sustained user engagement.
Growth Fund: 17,000,000 MKL (17%)
For ongoing growth and expansion of the Merkle Trade ecosystem, funds will be allocated to strategic partnerships, marketing, liquidity provision, and other growth-related initiatives. Up to 6,000,000 MKL (6% of total supply) will be unlocked at TGE with the remaining tokens released over next 4 years.
Core Team: 20,000,000 MKL (20%)
Allocated to the core development team for their ongoing commitment, subject to a six-month cliff and 36-month linear vesting to align with the protocol’s long-term success.
Early Backers: 14,000,000 MKL (14%)
Allocated to the initial investors who provided crucial backing during the early stages of protocol development, with distribution subject to a six-month cliff and a 24-month linear vesting period to align with the protocol’s long-term success. Furthermore, a portion of the allocation is earmarked for future investors, ensuring availability for upcoming investment rounds.
Advisors: 3,000,000 MKL (3%)
Assigned to advisors for their guidance during protocol development, subject to a six-month cliff and 24-month linear vesting for protocol success alignment.

Token Unlock Schedule

Upon launch, there will be a circulating supply of up to 14,000,000 MKL (14%). This includes MKL holders from our TGE, pre TGE incentives, and the Growth Fund designated for strategic partnerships, marketing, liquidity provision, and other initiatives. The majority of the new MKL supply will become available through incentives (from the community incentives allocation) in the form of MKL emissions. These emissions will be active from launch and will be gradually unlocked over a period of 6 years post-TGE.

Further details on the unlock schedule for MKL, along with community emissions, are provided below.

MKL Unlock Schedule Breakdown

Emission plays a critical role in tokenomics, striking a balance between preventing dilution and keeping a consistent token supply. Let’s outline how it will unfold over the course of the next 6 years.

What’s To Come For Merkle Trade

As Q1 draws to an end, it marks a significant juncture for Merkle Trade, prompting us to consider our future direction. This is an ideal moment to share upcoming developments that will shape our journey forward, guiding our continued growth and ensuring our ongoing success in the market.

Wen TGE?

The TGE originally slated for Q1 has been rescheduled. We believe that taking the necessary time to ensure a successful launch is vital in the ever-changing crypto landscape. Looking ahead to a Q2 launch fills us with optimism. Our primary goal is to strengthen Merkle Trade to secure market share prior to the TGE, ensuring a strong launch and offering maximum benefits to our early supporters.

Roadmap Highlights for Q2

Merkle Gears Marketplace
Embedded within the app, the Merkle Gear Marketplace functions as a specialized platform catering to the buying and selling needs of users interested in Merkle-branded gear. Here, users can explore a diverse selection of Gear providing benefits and edge to your trading experience
Swap & Deposit, AA Multichain Deposit
The Swap & Deposit feature, coupled with AA Multichain Deposit, streamlines deposit processes, improving user onboarding significantly. These enhancements aim for intuitive transactions, easing users into the platform with efficiency and accessibility.
Web2 Onboarding
A decentralized social login system, removing the need for a cryptocurrency wallet or additional tools. Users can access the platform with existing social media accounts, enhancing convenience and accessibility while promoting adoption within the decentralized ecosystem.
Dual Price Feed Integration
Integrating an extra price feed to enhance redundancy and resilience. By incorporating two separate feeds, we fortify our platform against disruptions, ensuring uninterrupted functionality even if one feed malfunctions.
Risk Management Upgrades
Incorporating an Auto-deleveraging (ADL) mechanism to mitigate tail risks for liquidity providers while also providing traders with reduced trading fees.
TGE & Staking
The introduction of the MKL token involves launching it on multiple DEX’s and prominent CEX’s to ensure fair and accessible distribution across diverse user demographics. Moreover, there will be a simultaneous launch of Staking utility, allowing users to earn yield right from the outset.

There is an abundance of exciting developments on the horizon from the Merkle Trade team, and what you’ve experienced so far is just a glimpse of what’s to come.

We’re fully committed to becoming the largest decentralized hub for leveraged trading, making sure that Merkle Trade is the go-to trading venue for everyone. Your interest and support mean the world to us as we journey together. Thanks for joining us on this adventure, and keep an eye out for more updates coming your way!

Website: https://merkle.trade

Documentation: https://docs.merkle.trade

Discord: https://discord.gg/vJ7WtSmRD6

Twitter: https://twitter.com/Merkle_Trade

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Disclaimer

The content above is neither a recommendation for investment and trading strategies nor does it constitute an investment offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.

Any forward-looking statement made in this article is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable securities laws, the team undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.