2.5 Tokenomics

This short paragraph serves to make tokenomics even clearer by explaining word by word the meaning of each term used and the strategies implemented with tokenomics.

2.5.1 Total Supply

The total supply refers to the maximum number of MRN tokens that will be minted. Under no circumstances will it be possible to create additional MRNs. In the event that the evolution of the protocol makes it necessary to migrate to a new token, the value of the total supply will always and only remain that communicated in this tokenomics.

2.5.2 Airdrops

The airdrop item refers to the tokens that will be distributed on some previously selected wallets. For the success of the project, this airdrop will follow the same unlocking and vesting rules provided for those who have bought MRN tokens privately. Specifically 6 months of locking from the TGE (on the mainnet) and then 12 months of linear vesting starting from the day following the end of the locking. This strategy is necessary to ensure fair entry conditions for those who want to participate in private and therefore the success of the project. Holders of the airdrop will be able to check how many tokens they will be entitled to the XXX link.

2.5.3 Private Sale

By Private Sale we mean a sale of tokens linked to the Merlin Protocol project at conditions different from those present on the market (both in terms of time and in terms of price). The tokens sold through the Private Sale, precisely by virtue of the special conditions of sale, will be subject to a 6-month locking period from the TGE and a further 12-month vesting period. In this vesting period they will be convertible into the MRN token for 1/365 of the total per day.

2.5.4 Advisors

This item refers to the tokens that will be assigned to important figures who will help the team in the success of the MERLIN PROTOCOL project. These tokens will be subject to a 12-month locking period and a subsequent 12-month vesting period.

2.5.5 Team

This entry refers to the tokens that will be assigned to the team. These tokens, to ensure the success of the project in the medium and long term, will be subject to a locking period of 18 months from the TGE and a subsequent vesting period of a further 12 months from the end of the locking period.

2.5.6 LP at the start

This entry refers to the tokens that will be inserted in pairs with a USDC token at the creation of the Liquidity Pool following the TGE on the main net.

2.5.7 Rewards & Marketing

Here we find the tokens allocated to give rewards to the community and for future marketing campaigns.

2.5.7 Rewards & Marketing

Here we find the tokens allocated to give rewards to the community and for future marketing campaigns.

2.5.8 Staking*

This item contains the tokens that will be given as a reward to those who choose to lock their MRNs for a certain period of time. The tokens allocated as rewards will be more than proportional as the chosen lock time period lengthens. For the success of the project, pools for stacking are already foreseen in the first 5 years of the life of the project by the TGE and, subsequently, they will go on to self-feed thanks to the buy back strategies of the MRNs that the DAO will have to vote in such a way as to make them operational.

2.5.9 Liquidity Mining*

Under this heading we find the strategies to make the LP wider and deeper. In particular, those who make both MRN and USDC available in the liquidity pool will be entitled to an additional reward paid in MRN which will be added to the rewards already distributed by the pool deriving from the CEX exchange commission. As for stacking, Liquidity Mining is foreseen for the first 5 years from the TGE according to the token allocation and, subsequently, it will be fed by the MRN buyback mechanism should the DAO so decide.

2.5.10 Conditional Dilution

For the success of the project and to gradually increase the circulation of the MRNs, part of the inflation will pass from the so-called conditional inflation. These are the necessary conditions for which further MRNs can be placed in LP thus guaranteeing the success of the project in the long term. Conditional dilution is capped at a maximum of 2% of the total supply per year for 5 years. In the event that 2% is not diluted in a year because the conditions necessary for introduction are not met, the DAO will be able to decide the fate of the advanced MRNs, for example by burning them, allocating them for stacking or subsequent farming, for marketing, etc.

2.5.11 Conditional dilution for LP widening

To ensure that the LP is always wider, thus allowing more people to be able to buy and sell their MRNs at a fair market price, we have studied the conditional dilution on a time condition to broaden the LP. Specifically, each month a quantity of MRN equal to 0.1% of the total supply will be introduced into the LP. The proceeds will be put back into the LP paired with additional MRNs. In doing so we will increase the c.d. depth of the LP ensuring that more MRN can be traded within lower volatility than USDC. This strategy on the one hand allows you to increase the depth of the LP and on the other tries to avoid speculation and price manipulation by potential whales.

2.5.12 LP expansion

Here the MRN tokens are calculated which are part of the strategy described in the previous point and which will be reissued in pairs with USDC in the LP.

2.5.13 Listings

This entry contains the tokens that will be used for future listings on the CEXs.

2.5.14 Miscellaneous and Possible

The tokens allocated for various and any further not envisaged in this document.