The highly anticipated Layer-1 blockchain Monad has officially unveiled key details about its native cryptocurrency in a recently published technical document. The token, named "mon", will serve as the primary utility token for gas and transaction fees on the network. This release marks a significant milestone in Monad’s development, offering deeper insights into its architecture, consensus mechanism, and roadmap.
As interest grows around high-performance Ethereum Virtual Machine (EVM)-compatible blockchains, Monad stands out with its bold vision of achieving 10,000 transactions per second (TPS) through parallel execution — a leap forward from traditional sequential models used by networks like Ethereum.
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What Is Monad?
Monad is a Proof-of-Stake (PoS) Layer-1 blockchain designed to deliver extreme throughput while maintaining full compatibility with the Ethereum Virtual Machine (EVM). This means developers can deploy existing Ethereum smart contracts on Monad without modifications, enabling seamless migration and broader adoption.
Unlike Ethereum, which processes transactions sequentially — limiting it to roughly 10–15 TPS — Monad leverages parallel execution technology to process multiple transactions simultaneously. This architectural innovation allows the network to scale efficiently and handle thousands of transactions per second without sacrificing decentralization or security.
The newly released technical documentation describes Monad as an evolution of two established blockchain frameworks: HotStuff — known for its scalability and fault tolerance — and DiemBFT, the consensus engine originally developed for Facebook’s now-discontinued Diem project. By building on these proven technologies, Monad aims to combine performance with reliability.
Parallel Execution: The Engine Behind High Throughput
At the heart of Monad’s performance gains is its parallel execution engine. In traditional blockchains like Ethereum, transactions are processed one after another in a linear fashion. If one transaction interacts with a specific smart contract, all others that touch the same contract must wait — creating bottlenecks during peak usage.
Monad eliminates this limitation by allowing non-conflicting transactions to be executed concurrently. For example:
- A user swapping tokens on a decentralized exchange
- Another user minting an NFT
- A third party interacting with a lending protocol
If these actions don’t interfere with shared data states, they can be processed at the same time. This parallelization dramatically increases throughput and reduces latency, making Monad suitable for large-scale decentralized applications (dApps), DeFi platforms, and Web3 ecosystems requiring real-time responsiveness.
The Role of the "mon" Token
The native token of the Monad ecosystem, named mon, plays a central role in securing and operating the network. According to the technical whitepaper, mon will be used for:
- Paying gas fees for transactions
- Covering computation costs when executing smart contracts
- Incentivizing validators in the PoS consensus model
- Participating in future governance mechanisms
By aligning economic incentives with network security, Monad ensures that stakeholders have a vested interest in maintaining system integrity and performance.
While further details about tokenomics — including total supply, distribution schedule, and vesting periods — have not yet been disclosed, the team has indicated that more information will be released ahead of the public testnet launch.
Upcoming Public Testnet Launch
In the coming months, Monad plans to roll out its public testnet, opening access to developers and early adopters. Once live, users will be able to interact with the network using standard EVM-compatible wallets such as MetaMask, Trust Wallet, and others — lowering the barrier to entry and encouraging experimentation.
This phase will be critical for stress-testing the network's parallel execution capabilities under real-world conditions. Developers will also have the opportunity to deploy and optimize dApps tailored for high-speed environments.
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Backed by Top-Tier Investors and Experienced Builders
Monad was co-founded by former engineers from Jump Trading LLC, a renowned quantitative trading firm known for its expertise in low-latency systems and high-frequency trading. This background gives the team a unique advantage in designing ultra-fast blockchain infrastructure.
In February 2025, the project successfully raised $19 million in seed funding, led by Dragonfly Capital, one of the most influential venture capital firms in the crypto space. The investment underscores strong confidence in Monad’s technical approach and long-term potential.
With its combination of elite engineering talent, robust financial backing, and innovative architecture, Monad is positioned as a serious contender in the race to build the next generation of scalable Layer-1 solutions.
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Frequently Asked Questions (FAQ)
What is the name of Monad’s native token?
The native token of the Monad blockchain is called "mon". It will be used for paying gas fees, executing smart contracts, and securing the network via staking in its Proof-of-Stake model.
How fast is the Monad blockchain?
Monad aims to achieve up to 10,000 transactions per second (TPS) by leveraging parallel execution, making it one of the fastest EVM-compatible Layer-1 blockchains under development.
Is Monad compatible with Ethereum tools?
Yes, Monad is fully EVM-compatible, meaning developers can use existing Ethereum development tools like Hardhat, Remix, Truffle, and wallets such as MetaMask without any changes to their codebase.
When will the Monad public testnet launch?
The public testnet is expected to go live in the coming months of 2025, allowing developers and users to begin testing applications and exploring network features.
Who is developing Monad?
Monad is being built by a team of experienced engineers, many of whom are former employees of Jump Trading LLC, bringing deep expertise in high-performance computing and distributed systems.
What consensus mechanism does Monad use?
Monad uses a Proof-of-Stake (PoS) consensus model based on an evolved version of the HotStuff protocol and DiemBFT, ensuring both scalability and security.
With its cutting-edge parallel execution model, EVM compatibility, and strong backing from leading investors, Monad represents a promising advancement in blockchain scalability. As the project moves toward its public testnet launch, it continues to draw attention from developers, validators, and crypto enthusiasts eager to explore the future of high-speed decentralized networks.