**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

**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. **10%** of total supply Protocol development and ecosystem growth **10%** of total supply 4-year linear vesting schedule **5%** of total supply for \$MRDN/USDC trading liquidity & reserve for future listings **3%** of total supply for additional liquidity incentives **1%** of total supply to boot strap initial liquidity pool **1%** of total supply Community distribution ## Emission Schedule

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:** $y(x) = 0.02 \cdot e^{-13.9 \times 10^{-9} \cdot x}$ Where: * $y(x)$ = Cashback percentage at volume $x$ * $x$ = Cumulative transaction volume processed (USD) * $0.02$ = Initial cashback rate (2%) * $13.9 \times 10^{-9}$ = Decay constant (adjustable parameter)

Emission Milestones

| Tokens Emitted | Current Rate | | -------------- | ------------- | | **0** | **2.0%** | | **50M** | **1.0%** | | **100M** | **0.5%** | | **150M** | **0.25%** | | **200M** | **0.125%** | | **250M** | **0.0625%** | | **300M** | **0.03125%** | | **350M** | **0.015625%** |

**Key Parameters:** * **Total Emission Supply:** 700M \$MRDN tokens * **Per-Transaction Cap:** $5 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 ## Cashback Mechanism

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.

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

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 ``` ## 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 ### 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 ``` ## Token Utility

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 ## Trading & Liquidity

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 ## Long-term Sustainability

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

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