6. MLT Token

6.1. MLT token

The MLT token serves a utility purpose in the ecosystem. 400,000,000 MLT tokens are pre-mined and are either distributed in the market or locked, according to the token distribution table (§6.2).

6.1.1. Staking

The main token use case is the Mintlayer Dynamic Slot Allotment Mechanism: the blocksigners are users who “legitimize” the blocks created by signing them. They alternate in the creation of new blocks according to a selection algorithm.

The blocksigner group is dynamic: for participating in the auction, it is necessary to stake the MLT token. Every user can apply for the blocksigner role as long as they stake enough MLT Tokens (40,000 tokens, equal to 0.01% of the initial total token supply).

There is no Proof-of-Work: users have to stake their tokens and participate in a recurring auction that determines who qualifies as blocksigners for the next round. Each round lasts about 1 week (or every 1008 Bitcoin blocks). If the demand for participants is higher than the available blocksigner slots, users with more MLT tokens have a higher probability of becoming a blocksigner.

Blocksigners collect transaction fees from the blocks they create (mining), while the network users can pay fees in any token transferred on the Mintlayer, including MLT.

6.1.2. Community Engagement

Mintlayer is an open-source project. To encourage community-driven protocol, MLT token allows its holders to express their opinion regarding the development of the network. Users can help prioritizing roadmap events, suggest features, and more.

6.1.3. Ecosystem Tools

MLT token can be used pay network fees as well as the token issuance fee that users pay when issuing a token on Mintlayer.

RBB LAB services can be bought using MLT tokens:

  • Mintlayer smart contracts development
  • Security audit of Mintlayer smart-contracts
  • Software Engineering of decentralised application on Mintlayer

6.1.4. Farming

This approach strengthens the Mintlayer community:

  • In the first 10 years after the mainnet launch, each Mintlayer

    block will generate a reward for the block creators until the

    total supply reaches the 600,000,000 MLT hard cap

  • Newly generated tokens are collected by network participants

    staking a minimum of 40,000 MLT tokens, following the

    Mintlayer conensus rules.

  • Long-term believers will benefit from the commitment to the project, because the longer they participate in staking, the more MLT tokens they receive.

6.2. Token distribution

Pool name Token Amount Pool Share Vesting Type
Pre-seed 2,500,000 0.63% 4
Seed 54,600,000 13.65% 2
Fair launch 12,605,042 3.15% 2
Public sale 22,000,000 5.50% unlocked
Marketing and Listing 48,000,000 12.00% 1
Strategic sale - Long Vesting 52,000,000 13.00% 5
Strategic sale - Short Vesting 26,000,000 6.50% 2
Protocol Development 40,000,000 10.00% 4
Community Incentives 20,000,000 5.00% 3
Company Reserve 72,294,958 18.07% 5
Team & Advisors 50,000,000 12.50% 4

Vesting Types:

Type Unlock at TGE Unlock after TGE
1 12% 8% monthly over 11 months
2 10% 6% monthly over 15 months
3 10% 5% monthly over 18 months
4 0% 4 months locked, then unlocking 5% monthly over 20 months
5 0% 4 months locked, then unlocking 2% monthly over 10 months, then 4% over 20

The initial unlocked token supply is set to 39,080,504 MLT at the Token Generation Event.

6.3. Roadmap

Time Goal
Q1/2022 New node codebase to replace Substrate started
Q2/2022 Mobile wallet beta version (Bitcoin enabled)
Q3/2022 Mobile wallet support for Bitcoin Lightning Network
Q4/2022 Launch of “Lovelace” testnet Fullnode release candidate for Linux, Windows, Mac
MLS-01 and MLS-03 standards in testnet
Q1/2023 Mainnet launch
DSA Consensus System v.0
Q2/2023 Mobile wallet integration of MLT and MLS tokens
Free gas market for transactions
Q3/2023 WebAssembly Programmable Pools
Access Control List for MLS-01
Q4/2023 Basic Atomic Swap system
Q1/2024 Atomic Swap DEX with Distributed Hash Table
Q2/2024 Lightning Network Integration
Q3/2024 MLS-02 Confidential Transactions

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