What is Monad Crypto? Explanation for Newbie

Source: TokocryptoBlog Original Title: What is Monad Crypto? An Explanation for Beginners Original Link:

Introduction to Monad Crypto

Monad has become a topic of conversation among crypto investors thanks to the hype surrounding its ICO and token TGE. Monad positions itself as a solution to address the limitations of slow and expensive EVM blockchains by combining high speed with perfect Ethereum compatibility.

What is Monad Crypto?

Monad, developed by Monad Labs ( startup founded in 2022), emerges as a Layer-1 Ethereum solution designed to address speed and cost issues.

Monad is designed to achieve extreme performance:

  • Up to 10,000 transactions per second
  • Block time is only 400 milliseconds
  • Finality (transaction final confirmation) in under one second

This is far faster compared to Ethereum, which averages only 15-30 TPS, or even other blockchains that reach thousands of TPS but often experience disruptions.

What makes Monad unique is its full compatibility with the Ethereum Virtual Machine (EVM) at the bytecode level. This means that all Ethereum code, tools, and applications can run on Monad without any modifications.

Monad vs Ethereum: What is the Difference?

From the user's perspective, Monad looks very similar to Ethereum as it supports popular wallets like MetaMask or Phantom, and is compatible with block explorers like Etherscan. In fact, applications built on Ethereum can be migrated to Monad without code changes.

However, the main difference lies in performance and efficiency. While Ethereum still suffers from slow and costly throughput, Monad comes with a new architecture that allows for parallel execution and pipelining, achieving 10,000 transactions per second with a finality of only 800ms.

How Monad Crypto Works

Monad delivers exceptional performance by introducing parallel execution and superscalar pipelining into the Ethereum Virtual Machine (EVM).

Parallel execution allows for the utilization of multiple processor cores and threads to execute transactions simultaneously. Although the process runs in parallel behind the scenes, the final result remains consistent as in serial execution.

Superscalar pipelining works by dividing tasks into several stages and executing them in parallel. This concept is similar to the process of washing clothes: instead of completing one full cycle before starting another, each stage is run concurrently, thereby increasing efficiency.

With the combination of these two mechanisms, Monad is able to overcome the bottleneck that has long limited EVM blockchain, while also providing high scalability, faster transaction speeds, and lower gas fees.

Monad introduces pipelining in five main areas:

  • MonadBFT for fast and tail-fork resistant BFT consensus
  • RaptorCast for efficient block transmission
  • Asynchronous Execution to combine consensus and execution in parallel
  • Parallel Execution and JIT Compilation for efficient transaction execution
  • MonadDb for efficient state access

Monad vs Other Major Blockchains

Category Ethereum Monad Solana BNB Chain
Consensus Mechanism Proof of Stake MonadBFT Proof of Stake + Proof of History Proof of Staked Authority
Scalability Approach Layer 2, Sharding Parallel + Asynchronous Execution Proof of History + Parallel Execution Layer 1 infra, Layer 2 support
Transaction Speed ~15 TPS ~10,000 TPS (target) ~1,000-1,100 TPS actual ~180-414 TPS actual
Block Time 12 seconds 400 ms ~400 ms 750 ms
Finality 12-15 minutes 800 ms ~12.8 seconds ~1.875 seconds
EVM Compatibility Yes Yes (full bytecode) No Yes
Gas Fees Varied, high Very low (~$0.004-0.007) Very low (~$0.00025) Low (~$0.01)
Mainnet Status Live Testnet (mainnet akhir 2025) Live Live

Claim the main differences of Monad:

  • Fast block time: 400 ms — much faster than Ethereum (12s)
  • Fastest finality: 800 ms — shorter than other blockchains
  • Highest throughput among EVM chains: Target 10,000 TPS without sacrificing full compatibility
  • Transparent parallelism: Developers do not need to rewrite smart contracts to take advantage of parallel execution.
  • Testnet performance tested: >2.44 billion transactions processed

Monad Initial Coin Offering (ICO)

Monad is conducting an Initial Coin Offering (ICO) for its token on November 22, 2025, and successfully held the Token Generation Event (TGE) on November 24, 2025.

This ICO successfully raised a total of $431.5 million from 5 rounds:

  • Seed Round (initial 2023): $19 million
  • Strategic Round (2024): >$225 million
  • Funding Round (2024): >$225 million
  • Phase 2025: >$187 million at a price of $0.025

After the successful TGE and token distribution, the price of Monad reached $0.0487 (, rising 94% from the ICO price ) before stabilizing around $0.02940.

Monad Tokenomics

MON is the native token of the Monad Protocol used to pay network transaction fees and for staking to secure the Monad network.

Monad has a total supply of 100 billion tokens with the following allocation:

Allocation Group Status on Public Mainnet Token Amount Percentage
Ecosystem Development Unlocked 38,544,142,854 38.5%
Team Locked 26.989.187.887 27.0%
Investors Locked 19,683,237,451 19.7%
Public Sale Unlocked 7,500,000,000 7.5%
Category Labs Treasury Locked 3,952,848,412 4.0%
Airdrop Unlocked 3,330,583,396 3.3%
Total Initial Token Supply 100,000,000,000 100.0%

At the launch of the Monad Public Mainnet in November 2025, approximately 49.4 billion MON (49.4%) was immediately unlocked (, consisting of public sale distribution, airdrop, and ecosystem development allocation. Meanwhile, 50.6 billion MON )50.6%( remains locked, including team tokens, investors, and Category Labs Treasury.

All locked tokens have a minimum lock-up period of one year, with different vesting schedules according to category. Team tokens start to be released after one year and continue for 3-4 years, while investor tokens follow a four-year scheme with a one-year cliff and monthly unlocks.

All locked tokens are projected to be fully unlocked in Q4 2029.

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Conclusion

Monad Crypto presents itself as a modern blockchain solution that is fast, efficient, and compatible with the Ethereum ecosystem. With parallel execution technology, low gas fees, and support for large-scale applications, Monad has the potential to become one of the leading networks in the future.

MON-0.8%
ETH-2.7%
SOL-2.84%
BNB-0.89%
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