What is Monad (MON)?
Monad is a Layer 1 blockchain that uses the Proof of Stake consensus mechanism, highly compatible with EVM. The project has successfully raised $224 million in total, led by Dragonfly Capital. So what is Monad? Let's dive into the article below!
Key Takeaways
- Monad is a next-generation Layer 1 blockchain that leverages the Proof of Stake (PoS) consensus mechanism.
- Monad developed a Parallel Execution mechanism that is still highly compatible with EVM
- A key innovation of Monad lies in its Parallel Execution engine, which enables the network to process transactions simultaneously rather than sequentially.
What is Monad?
Monad is a next-generation Layer 1 blockchain that leverages the Proof of Stake (PoS) consensus mechanism while maintaining full compatibility with the Ethereum Virtual Machine (EVM).
A key innovation of Monad lies in its Parallel Execution engine, which enables the network to process transactions simultaneously rather than sequentially. This architectural breakthrough empowers Monad to achieve throughput of up to 10,000 transactions per second (TPS), significantly outperforming most existing EVM-compatible chains.
Developed by the Jump Trading LLC team, Monad aims to be the fastest, cheapest, and most secure EVM Layer 1.
How does Monad work?
Monad was built and developed by former members of Jump Trading LLC with the goal of turning Monad into a secure EVM Layer 1 blockchain with fast transaction processing and low cost. Recognizing the limitations of Sequential Execution from previous blockchains, Monad developed a Parallel Execution mechanism that is still highly compatible with EVM.
Parallel Execution
Monad uses Parallel Execution to process multiple transactions at once instead of one at a time like Ethereum. Basically, Monad blocks still retain a linear set of transactions like Ethereum and the execution results of these transactions are also the same.
However, Monad will use optimistic execution to keep the transaction outputs accurate. Subsequent transactions start running even if the previous transactions in the block have not been completed. If a transaction uses stale data, it will be flagged to be rerun with the latest updated information.
This checking is done by comparing the input and output of the transaction using Optimistic Concurrency Control (OCC) and Software Transactional Memory (STM) techniques to maintain data integrity while maximizing speed.
MonadDb
MonadDb is Monad’s custom database for storing state, unlike Ethereum clients that rely on B-Tree or LSM-Tree combined with Merkle Patricia Trie (MPT), which is less efficient.
MonadDb directly implements the Patricia Trie both in memory and on disk, while also supporting asynchronous I/O through Linux’s io_uring. This enables Monad to execute multiple transactions in parallel, reducing latency and processing overhead compared to traditional databases
MonadBFT
MonadBFT is a 2-phase BFT algorithm built on an optimistic response model with linear communication cost in the normal case and quadratic communication cost in case of synchronous timeouts. Similar to most BFT algorithms, communication occurs in phases.
In each phase, the leader sends a signed message to the voters, who then send a signed response to the next leader. MonadBFT leverages Pipelining, a capability that allows Monad to stack transaction stages instead of executing them one at a time to increase transaction execution speed and net transaction throughput of the network.
Shared Mempool
Shared Mempool is a pool of memory that is divided into multiple shards, and each shard is responsible for storing a subset of the transactions in the mempool. This allows the mempool to process transactions more efficiently and scale to larger numbers of transactions.
In Monad, Shared Mempools are used to store transactions that have been submitted but not yet executed. When a new transaction is submitted to the network, it is routed to the shard based on the hash of the transaction. The transaction is then stored in the shard's memory pool until it is executed.
Nodes in Monad are responsible for processing transactions in their assigned shard. To do this, nodes continuously select transactions from the shard's memory pool and execute them. Nodes then forward the executed transactions to the rest of the network.
Deferred Execution
In most existing blockchains, the leader selects a list of transactions from the mempool and executes them to determine the new state. The leader then publishes a block with the transaction in the new state which is verified and executed by other nodes participating in the consensus.
With Deferred Execution, Monad has separated the execution process from the consensus process. Instead of executing transactions during consensus, Monad executes them first and stores the results.
Carriage Cost & Reserve Balance
Users must pay a fee to have a transaction included in a block, called a carriage cost. For each address, nodes maintain two balances:
- Reserve balance: Used to pay the carriage cost.
- Execution balance: Used to pay the transaction execution cost.
Carriage cost is deducted from the Reserve balance when a transaction is included in a block. Additionally, it is deducted from the Execution balance when a transaction is executed and is returned to the Reserve balance after the block delay has passed.
Reserve balance is a budget for pending transactions and exists to ensure that only transactions that have been paid for are included in blocks.
What is the vision of Monad?
According to Ethereum Scan, the Ethereum network currently processes around 12–30 transactions per second (TPS). This limitation has long been a bottleneck for scalability, restricting the growth of applications that require high throughput such as decentralized exchanges, gaming, or real-time financial services.
Therefore, Monad's main mission is to support the development of the cryptocurrency ecosystem. According to Monad, their MVP will achieve 10,000 TPS through innovation and proper implementation of the set process.
In addition, the project also believes that if the dependency estimation algorithm and consensus mechanism are improved, the result can reach around 400,000 TPS under ideal conditions.
Monad Tokenomics & Fundraising
Tokenomics
Currently, Monad has not announced any official tokenomics for the project. Whales Market will update immediately when the official Monad website announces.
Fundraising
Monad has raised a total of ~$250 million, including $19 million from Seed Round at 14 Feb, 2023 and $225 million at 9 Apr,2024 from leading investment funds such as Paradigm and Dragonfly.
Monad Ecosystem
Currently, Monad is building and developing its own ecosystem with outstanding projects in each area as follows:
- DeFi: Ambient, iZUMi Finance, Aori,...
- Infrastructure: LayerZero, Wormhole, Pyth Network,...
- Game/NFT: Monadians, Blocknads, Poply,...
- Oracle: Pyth Network, Switchboard,...
- AI: AIT Protocol, Monadata,...
- Tools: Metadrop, Parsec,...
- Wallet: Metamask, Backpack,...
- Cross-chain bridge: Wormhole, LayerZero,...
Monad (MON) Listing Information
Here are important details revealed to MON:
- Listing time: TBA
- Confirmed CEX Listings: TBA
- Pre-market Price (Whales Market): TBA
Monad Roadmap & Team
Roadmap
Currently, Monad has not announced any official roadmap for the project. Whales Market will update immediately when the official Monad website announces.
Team
Monad is developed by Jump Trading, a team with over 7 years of experience working together. The leaders include:
- Keone Hon: Co Founder and CEO
- James Hunsaker: CTO
- Eunice Giatar: COO
How to add Monad Testnet to Metamask?
Here is the guideline to add Monad Testnet:
- Step 1: Open Metamask & Click on the "Add a Custom Network" button.
- Step 2: Add the Network name, add a RPC URL by clicking the "Add RPC URL" button.
- Step 3: Enter the RPC details: https://testnet-rpc.monad.xyz
- Step 4: Enter the Chain ID, Currency Symbol, add the Block Explorer URL by clicking the "Add a block explorer URL" button.
- Step 5: Enter the Block Explorer URL: https://testnet.monadexplorer.com
- Step 6: Finally you can click on the "Save" button.
Conclusion
Monad is an innovative new blockchain that promises to speed up smart contracts and decentralized apps while also lowering costs and increasing efficiency. Monad attempts to tackle Ethereum's major difficulties while staying compatible with its ecosystem through parallel execution, an efficient virtual machine, and an enhanced storage system.
If Monad succeeds, it could become a major player in the blockchain space, offering a faster and more scalable solution for developers and users worldwide.
Disclaimer: This article is for informational purposes only, not investment advice, and Whales Market is not responsible for any of your investment decisions.
FAQ
1. How to trade $MON (Monad) on Whales Market?
If you want to trade $MON (Monad) on Whales Market, you can either create an offer or buy/sell from other users’ offers. For full details, please read the Whales Market docs. Whales Market is the leading pre-market DEX to trade pre-TGE tokens and allocations, with over $300 million in volume, no middlemen, fully trustless and on-chain.
2. Who are Monad backers?
Monad backers include Paradigm, Coinbase Ventures, Electric Capital and Greenoaks.
3. How much has MONAD raised?
Monad has raised $225M from Paradigm, Coinbase Ventures, Electric Capital and Greenoaks.
4. When is MONAD TGE?
Monad’s TGE has not been officially announced, but the foundation recently teased an image indicating a CoinMarketCap listing date of September 29, 2025 - leading the community to believe the TGE will occur in September
5. What is Monad (MON)?
Monad is a high-performance Ethereum-compatible L1. Monad materially advances the efficient frontier in the balance between decentralization and scalability.
6. When is Monad listing?
Currently, Monad hasn't announced any plans for CEX listing.
7. What is Monad Airdrop?
Monad will have an airdrop program for those who claimed roles in their Discord and took place in Testnet activities.