Merkle Network Tokenomics Explained
Merkle Network uses MERKLE tokens to reward Merkle Node operators for transferring the data from the source blockchain to the destination blockchain, while maintaining the integrity & readability of the data and uptime guarantee of the node operators. Users and smart contracts looking to use the Merkle network to transfer data between the chains pay the Node operators in Merkle tokens.
Furthermore, MERKLE tokens will also strengthen the node network through staking tokens to operate nodes. Staking will act as a collateral in the network for node operators and act as a deterrent for bad actors to enter the ecosystem. There will be a need for a consensus of node operators to maintain the network and the addition of nodes will need for additional token lockups as the network grows.
Supply Information
The maximum supply of MERKLE tokens is 60,000,000 with deflationary supply linked to the use of network. A part of the fees generated on the network will be burned.
Below table provides the breakdown of the tokens into multiple utility pools.
Token swaps
Merkle network was conceptualised while the core team was working on identifying ways to scale the application by leveraging layer 2/alternative blockchain. Since the previous project of the core team (Ethverse) was discontinued due to legal issues arising from working on third party games, the team made a choice to build Merkle network instead of ceasing operations altogether. All the existing ETHV tokens holders will receive 1:1 token swaps with MERKLE tokens as our commitment to our community and dedicate our efforts to deliver value to our token holders.
Release Schedule
Tokens from all the allocation pools will be subject to a release schedule. The tokens migrating from ETHV will have an initial 30% release and the remaining tokens unlocking every block for 2 months. The users will be able to withdraw the unlocked from the swap contract after the MERKLE token is listed on exchanges. The remaining tokens are subject to 1 year vesting and team tokens subject to 2 year vesting schedule with monthly unlocks.
Important Links
Website: https://merkle.network/
Twitter: @merkleNetwork
Telegram: t.me/merkleNetwork
Announcements: t.me/merkleNetwork_announcement
