This episode reveals the deliberate, long-term strategy behind Monad's mainnet launch, showcasing how disciplined execution and a focus on organic growth can challenge the industry's reliance on short-term hype.
Monad Mainnet Launch: A Measured Success
- Keone Hon, founder of Monad, provides a candid assessment of the mainnet launch, rating it a "seven out of ten." He highlights that the core technology performed seamlessly, delivering on its promise of high performance and decentralization.
- Key Successes: The blockchain itself was stable and fast, with 400-millisecond block times providing users with rapid transaction processing and full finality on an L1. Keone notes that users were excited about the user experience and compatibility with existing wallets.
- Areas for Improvement: The primary challenge was the immense coordination required to align all ecosystem partners for a day-one launch. Keone explains that some infrastructure providers and developer tools, such as the debugging tool Tenderly, were not fully ready, which blocked some teams from deploying immediately. This underscores the logistical complexity of launching a new L1 ecosystem.
A Deliberate and Permissionless Go-to-Market Strategy
- Monad’s launch strategy deviated from common industry playbooks, particularly regarding token listings and liquidity incentives. Keone details the thinking behind these unique decisions, emphasizing a philosophy of permissionless access and organic growth.
- Broad Exchange Listings: The MON token was available on a diverse set of venues from day one, including centralized exchanges like Coinbase and Upbit, as well as decentralized platforms on other chains like Solana and Hyperliquid.
- Embracing a Multi-Chain Reality: Keone expresses a refreshingly open perspective on seeing the MON token traded on competing L1s. He dismisses the idea of gating the token to Monad's native chain, stating, "I don't see it that way. I don't think about that. I think it's just it's really can be win-win." This approach prioritizes broad distribution and accessibility over forcing user activity onto the native chain.
- Strategic Implication: Monad's approach signals a focus on becoming a foundational asset within the broader crypto ecosystem rather than a walled garden. For investors, this indicates a strategy geared towards long-term relevance and interoperability.
The Rationale Against Inflated TVL
- In a significant departure from recent L1/L2 launches, Monad intentionally chose not to run an ecosystem-wide pre-deposit campaign designed to boost Total Value Locked (TVL) on day one.
- Earning TVL Organically: Keone argues that TVL is only meaningful when driven by genuine, end-user demand. Flooding the ecosystem with capital before applications have a clear use for it creates a false metric of success.
- Avoiding the "Liability" of Subsidized Liquidity: He references a tweet from Monad's Head of DeFi, stating that "too much TVL is a liability on a new chain." Keone explains that subsidized TVL is transient; when incentives disappear, the resulting outflows create negative headlines and damage sentiment.
- A Focus on User Acquisition: Instead of incentivizing TVL, the Monad Foundation's "Monad Momentum" campaign focuses on user acquisition. This program encourages ecosystem projects to adopt traditional Web2 metrics like cost of user acquisition (CAC) and long-term value (LTV), promoting sustainable growth over vanity metrics.
A Multi-Pronged Token Distribution Strategy
- Keone outlines a thoughtful, multi-layered approach to token distribution designed to engage distinct user segments, from core contributors to the "crypto-curious."
- The Airdrop's Purpose: The airdrop targeted two key groups: core community members who contributed to the project's development and active on-chain users (DeFi power users, NFT holders, public goods contributors) to welcome them into the ecosystem.
- The Coinbase Token Sale: To reach a broader audience beyond the "crypto Twitter bubble," Monad partnered with Coinbase for the first token sale on its new platform. This initiative successfully onboarded over 85,000 participants, achieving the goal of wider, more decentralized token distribution.
- Strategic Insight: This dual strategy of airdrop and public sale demonstrates a sophisticated understanding of community building. By segmenting distribution, Monad aimed to reward loyalists while simultaneously expanding its user base, a crucial balance for long-term network health.
Ecosystem Building: Fostering Competition, Not Kingmaking
- Drawing lessons from his career in high-frequency trading at firms like Gecko and Jump Trading, Keone details Monad's commitment to credible neutrality in its ecosystem development.
- The Perils of Picking Winners: Keone recounts how his former employer, Gecko, declined after centrally assigning teams to specific markets, stifling internal competition. In contrast, Jump Trading thrived by allowing teams to compete freely, a philosophy he has embedded into Monad.
- A Level Playing Field: The Monad Foundation's role is not to "kingmake" but to "elevate the baseline level of support" for all builders, whether they are established multi-chain protocols or new, scrappy teams.
- Automating Support with Delta V: To scale support without creating bottlenecks, the team built Delta V, a proprietary platform described as a "social network for founders." It uses AI to summarize project updates and connect builders with investors and resources, automating ecosystem management.
Market Positioning and Long-Term Vision
- When asked why the world needs another blockchain, Keone’s answer is direct and focused on tangible results rather than abstract narratives.
- Execution is Everything: Keone dismisses the "midcurve" critique of launching a new L1, asserting, "I do just fundamentally believe that execution is everything." He argues that Monad's value proposition lies in its team's proven ability to ship a high-quality, performant product that opens up new design space for developers.
- Focus on Crypto-Native Adoption: Keone believes that for most enterprises, integrating with an existing, battle-tested blockchain with strong network effects is more practical than building on a new, corporate-backed chain. This positions Monad to compete for crypto-native developers and applications first.
- A "Grit and Grind" Mentality: Looking ahead, Keone emphasizes that the mainnet launch is just the beginning of a long journey. He anticipates a period of intense iteration and learning for the ecosystem, rejecting any notion of instant success and focusing on the hard work required to build a lasting platform.
Conclusion
Monad's launch strategy prioritizes execution, organic growth, and broad distribution over the inflated metrics that often define new chains. For investors and researchers, this disciplined approach signals a commitment to long-term sustainability, making Monad a project to watch for its substance rather than its short-term hype.
