Emissions

How emissions are allocated to voters and liquidity providers, and how rebases protect long‑term lockers.

Initial supply and tail emissions

Monswap will launch with an initial supply that will be disclosed soon (final tokenomics), aligned with Monad’s broader tokenomics and ecosystem goals. After genesis, the protocol transitions to tail emissions—a gradual, ongoing issuance designed to sustain liquidity and governance over time without excessive inflation.

Emission split

Emissions are shared between liquidity providers (LPs) and single stakers (voters). To keep the system balanced, the voter share is capped so that the split does not exceed 50:50 at any time.

Voter (rebase) emissions scale with the ratio of vote‑escrowed supply to total token supply:

Rebase = weeklyEmissions × (1 − veTotalSupply ÷ tokenTotalSupply)^2 × 0.5

Intuition: when ve‑locking participation drops, the rebase share rises (within the cap), attracting more lockers; when ve participation is high, the rebase share naturally tapers. This makes the DEX a dynamic incentive machine, nudging the system toward healthy equilibrium.

Rebase explained

Rebases help protect long‑term holders from dilution. As weekly emissions increase token supply to pay LP rewards, a portion is redirected to ve‑lock holders. Combined with trading fees and bribes, ve‑lock holders can offset or even fully neutralize net dilution over time (outcomes vary by market conditions).

This rebase accrues linearly throughout each epoch and can be claimed by lockers.

Emission rewards to LPs

Each epoch, emissions for LPs are allocated proportionally to votes. If Pool A receives 50% of votes, it earns 50% of that epoch’s LP emissions.

  • Rewards accrue continuously and are claimable throughout the epoch.

TL; DR

  • Initial supply will be disclosed soon and is aligned with Monad’s tokenomics; ongoing tail emissions follow.
  • Emissions split between LPs and voters; voter share scales with ve/total supply and is capped to ≤ 50%.
  • Rebase formula: weeklyEmissions × (1 − veTotalSupply ÷ tokenTotalSupply)^2 × 0.5.
  • Rebases accrue linearly during the epoch and help offset dilution for ve‑lock holders.
  • LP emissions are distributed by votes; stake LP tokens to earn and claim rewards.
  • Staking and voting are foundational: earn via fees, bribes, and rebases while maintaining exposure to your principal and keeping capital working in‑protocol.
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