Monad

Blockchain Financials

Network revenue on Monad consists solely of Real Economic Value (REV), which is a standardized metric that tracks blockchain value accrual generated by user activity. REV consists of transaction base fees, priority fees, and MEV tips that users pay for transaction execution, measuring the monetary demand to transact onchain.

From the perspective of token holders, REV is the "top line" metric of a blockchain as it represents the amount of value paid into the system that token holders are ultimately eligible to earn, net of any operating expenses.

The operating expenses, or Operator Payments, consist of the value allocated to the infrastructure providers responsible for running the network, such as validators. The payments aim to cover the real-world costs of maintaining the network plus some margin to incentivize participation.

Therefore, Token Holder Net Income is the remaining value distributed to the token holders and is calculated as REV less any Operator Payments.

MON Financials

From the perspective of the token holders, REV is the "top line" metric of a blockchain as it represents the amount of value that users pay for transaction execution and the value that token holders are ultimately eligible to earn, net of any operating expenses.

Network Revenue

Network Revenue for Monad consists solely of Real Economic Value (REV), which tracks blockchain value capture generated by real user activity. REV consists of in-protocol transaction fees that users pay for execution. Therefore, it measures aggregate demand to transact.

Network REV does not include any Token Issuance.

Monad uses an EIP-1559 fee model with three fee components. The Base Fee is dynamically adjusted based on network demand and is entirely burned, returning value to all token holders via deflation. The Priority Fee (tip) is an optional fee users pay for faster transaction inclusion and goes directly to the block-producing validator. MEV Tips are out-of-protocol payments for MEV capture or protection and also flow to validators.

Operator Payments

Payments to operators refer to the value allocated to the infrastructure providers responsible for running the network. These payments generally cover the real-world costs of maintaining the network plus some margin to incentivize participation.

Monad uses a delegated proof-of-stake consensus where validators are compensated from three sources: Priority Fees and MEV Tips from transaction execution (which go directly to the block producer) and a Commission on MON Issuance (a percentage of staking rewards withheld by validators before distributing the remainder to delegators). The aggregate commission rate varies as each validator sets their own rate.

In this model, inflation is not a cost in its entirety — only the portion that does not flow to token holders is a cost. The portion that does flow to token holders (via delegator rewards) is simply a value transfer from non-stakers to stakers.

Token Holder Net Income

Token Holder Net Income = REV - Operator Payments. It measures the value that accrues to the token holders after considering payments to operators.

Importantly, the Token Holders is the aggregate position of both stakers and non-stakers. Stakers receive both token burn benefits and staking rewards, while non-stakers only benefit from token burn (deflation).