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Token Distribution

The $MRDN token has a carefully designed distribution model to ensure sustainable growth and proper incentive alignment across all stakeholders. Total Supply: 1,000,000,000 $MRDN Distribution Breakdown:
70% Emissions - 700M tokens
10% Treasury - 100M tokens
10% Team - 100M tokens
5% Liquidity & Listings - 50M tokens
3% Pool2 - 30M tokens
1% Closed Round - 10M tokens
1% uOS Airdrop - 10M tokens

Emissions

70% of total supply for $MRDN cashback emissions. Cashback starts at 2%, decays over time, and is capped at $5 of cashback value per eligible transaction.

Treasury

10% of total supply Protocol development and ecosystem growth

Team

10% of total supply 4-year linear vesting schedule

Liquidity & Listings

5% of total supply for $MRDN/USDC trading liquidity & reserve for future listings

Pool2

3% of total supply for additional liquidity incentives

Closed Round

1% of total supply to boot strap initial liquidity pool

uOS Airdrop

1% of total supply Community distribution

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Emission Schedule

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Exponential Decay Emission Model

How it works:
  • Continuous Decay: Cashback rate decreases exponentially with total network transaction volume
  • Volume-Based: Higher network usage naturally reduces emission rate over time
  • Smooth Transition: Emissions decay continuously leading to halving events
  • Economic Alignment: Early adopters receive higher rates while maintaining long-term sustainability

Decay Function

The cashback rate follows an exponential decay based on cumulative transaction volume: Cashback Rate Formula: y(x)=0.02⋅e−13.9×10−9⋅xy(x) = 0.02 \cdot e^{-13.9 \times 10^{-9} \cdot x} Where:
  • y(x)y(x) = Cashback percentage at volume xx
  • xx = Cumulative transaction volume processed (USD)
  • 0.020.02 = Initial cashback rate (2%)
  • 13.9×10−913.9 \times 10^{-9} = Decay constant (adjustable parameter)

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Emission Milestones

Tokens EmittedCurrent Rate
02.0%
50M1.0%
100M0.5%
150M0.25%
200M0.125%
250M0.0625%
300M0.03125%
350M0.015625%
Key Parameters:
  • Total Emission Supply: 700M $MRDN tokens
  • Per-Transaction Cap: 5ofcashbackvalue,paidin5 of cashback value, paid in MRDN
  • Halving Interval: Every 50M tokens emitted
  • Decay Constant: 13.9e-9
  • Volume Dependency: Transaction volume requirements scale with token price

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Cashback Mechanism

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How Cashback Works

Cashback rewards are paid in $MRDN tokens for eligible x402 payments settled on Base. The reward value follows the current cashback rate, but each transaction is capped at $5 of cashback value before conversion into $MRDN. 
Cashback Formula:
Total Payment × Current Cashback Rate = Cashback Amount (USD)
min(Cashback Amount, $5.00) = Capped Cashback Amount (USD)
Capped Cashback Amount ÷ $MRDN Price = $MRDN Tokens Received
$MRDN is distributed to the cashback contract every few minutes as rewards. The contract pays cashback FIFO: the first eligible transactions receive cashback first, until the newly distributed rewards for that window are used. Cashback is not paid for self-payments where the payer and recipient are the same address.

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Variable Token Payouts

Token payouts depend on market price:
  • Higher $MRDN Price: Fewer tokens received as cashback
  • Lower $MRDN Price: More tokens received as cashback

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Example Calculation

Service Payment: $1000 USDC on Base x402
Cashback Calculation: $1000 × 0.02 = $20.00 USDC value
Per-Transaction Cap: min($20.00, $5.00) = $5.00 USDC value
$MRDN/USDC Price: $0.50
$MRDN Tokens Queued: $5.00 ÷ $0.50 = 10 $MRDN

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Fee Structure

Transaction Fees

A 1% protocol fee is collected for x402 transactions on Base:
  • Fee Timing: Collected during Base x402 settlement
  • Fee Application: Applies only to x402 transactions on Base
  • No Fee on Permit Transfers: Apps such as pay.mrdn.finance use permit for gasless token transfers; the 1% protocol fee is not subtracted from those transfers
  • No Fee on Non-Base x402: The 1% protocol fee is not collected on x402 transactions outside Base
  • Fee Destination: Collected by protocol treasury
  • Purpose: Sustainable protocol revenue and ecosystem development funding

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Fee Distribution Example

Base x402 payment processed: $1000 USDC
├── Protocol Fee: -$10 USDC (1%)
├── Net to Recipient: $990 USDC
└── Cashback to Payer: up to $5 value in $MRDN, paid FIFO from reward distributions

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Token Utility

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Primary Use Cases

  • Cashback Rewards: Base x402 rewards paid in $MRDN
  • Network Participation: Incentivizes usage of Meridian payment infrastructure
  • Governance: Future governance rights for protocol decisions
  • Real Yield: Protocol-generated revenue provides sustainable returns

Economic Model

The tokenomics create a deflationary pressure through: - Decreasing Emissions: Halving cycles reduce new token supply over time - Usage-Based Rewards: Higher network usage increases token demand - Fee Collection: Protocol revenue provides sustainable funding model

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Trading & Liquidity

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Primary Trading Pair

The $MRDN token will be primarily traded against USDC:
  • Main Pair: $MRDN/USDC
  • Liquidity Pool: 5% of total supply allocated for initial $MRDN/USDC liquidity
  • Price Discovery: Market-driven pricing through decentralized exchanges
  • Stability: USDC pairing provides stable reference point for cashback calculations
  • Auto Liquidity Provision: USDC collected from Base x402 fees adds protocol owned liquidity

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Long-term Sustainability

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Balanced Incentives

  • Early Adopters: Higher cashback rates in early cycles reward pioneers - Long-term Users: Sustained value through decreasing supply inflation - Protocol Growth: Treasury and fee structure fund continuous development

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Emission Flexibility

The dynamic emission model ensures: - Early Adopters: Higher absolute emissions reward network pioneers - Long-term Sustainability: Emission rate decreases with remaining supply - Adaptive Schedule: Halving triggered by time or economic milestones provides flexibility