Understanding the MOVE Token Economics Announced by the Movement Network Foundation

Source: Movement Network Foundation; Compiled by Wuzhu, Golden Finance

With the upcoming launch of the Movement Network public mainnet, the Movement Network Foundation now launches $MOVE – which will be used to achieve the long-term goals of the Movement Network.

The Movement Network public mainnet is the first Ethereum-based Move blockchain designed to provide high TPS, greater security, and near-instant finality.

Movement improves the Ethereum ecosystem by bringing Move's superior security features and the diversity of new developers and applications on the network to the world's leading smart contract platform. $MOVE will be used to achieve the goals of the Network Foundation.

As we approach the $MOVE Token Generation Event (“TGE”), we now present the utility and token economics of $MOVE:

Token Distribution

$MOVE will have a maximum supply of 10,000,000,000 tokens, with an initial circulating supply of approximately 22%. $MOVE will be available on the Ethereum mainnet and represented as an ERC-20. $MOVE will also be available on the Movement Network as the Movement Network public mainnet launches.

The majority (60%) of $MOVE will be allocated to the network community — covering the Ecosystem and Community, Foundation, and Initial Claims tranches. 40% of $MOVE tokens are reserved for the ecosystem.

• Staking Rewards:Reserved for future distribution of validator rewards on the network.

• Ecosystem Initiatives:Reserved for future distribution of grants to teams on the network. Grants are awarded based on the completion of certain pre-defined milestones.

• Incentives and Liquidity Provision:Reserved for future distribution of incentives for using the Movement Network and to provide liquidity to bootstrap the Movement Network DeFi ecosystem.

Initial Bond (10%)

10% of $MOVE tokens will be distributed to the Movement Network community through MoveDrop and other initial bond events.

Foundation (10%)

10% of $MOVE tokens are reserved to support the ongoing operations of the Movement Network Foundation as they manage the growth, development, and decentralization of the Movement Network Foundation.

Early Contributors (17.5%)

17.5% of $MOVE tokens are reserved for early contributors to the Movement Network - primarily from Movement Labs. These early contributors come from Engineering, Product, Community and Marketing, Business Development, Strategy, and other workstreams.

Early Supporters (22.5%)

22.5% of $MOVE tokens are reserved for early supporters of the Movement Network - those who provide financial, advisory, and strategic support to the Movement Network.

Token Utility

$MOVE is the utility token for the Movement Network ecosystem and will be used to achieve the long-term goals of the network. The Movement Network aims to develop various utilities for $MOVE, including the following:

Staking for Economic Security

The Movement Network aims to introduce a novel fast finality settlement mechanism, creating an alternative to validity and optimistic rollups. Fast finality will be enabled by a set of validators who stake $MOVE to confirm the correctness of the Movement Network state. In exchange for providing this economic security, active validators will receive $MOVE staking rewards.

Gas Fees

Gas fees on the Movement Network public mainnet L2 are denominated and paid in $MOVE, with a portion of these fees used to pay rent to settle transactions on the Ethereum mainnet. In the future, when teams build L2s using MoveStack, it is expected that these L2s will also use $MOVE to pay gas fees.

Governance and Decentralization

With $MOVE, we expect the community to play a key role in the decentralization of the Movement Network governance over time. Holders will be able to propose and vote on governance proposals to change certain network parameters and participate in future community initiatives.

Native Assets on the Movement Network

$MOVE is expected to be the native asset of the Movement Network. Applications built on the Movement Network can use $MOVE to implement:

• Asset Liquidity

• Collateral

• Payments

Roadmap

Movement Network’s TGE strategy highlights the importance of launching $MOVE, the native token of the Movement Network ecosystem, with the capabilities described above. In doing so, we create the foundational utility that our network relies on and ensure that users have the necessary resources to effectively participate in the Movement Network after launch.

As part of the $MOVE launch, we begin building economic security by introducing a liquid deposit contract. This process is integral to bootstrapping the network and is designed to be executed in multiple stages starting with the TGE and continuing through the Movement Network public mainnet launch:

• Mainnet Genesis:Network generation, where selected node operators will be able to run follower nodes.

• Deposit Contract on Ethereum Mainnet:Economic security begins to be built by allowing users to deposit $MOVE on Ethereum Mainnet into the liquid deposit contract.

• Bridging $MOVE to Movement Network:Facilitating the transfer of $MOVE to the Movement Network.

• Joining Validators:Selecting and joining validators that will help secure the network.

• Enable Staking:Open up full staking functionality to a wider user base.

• Add Penalty Mechanism:Implement penalties for malicious behavior to maintain network integrity.

Other roadmap projects will follow once the Movement Network public mainnet launches:

• Movement Stack

• Shared Sequencing

• MEVM

• Multi-Staking

Conclusion

The Movement Network represents a major evolution for the Ethereum ecosystem, bringing Move’s superior security guarantees to the world’s leading smart contract platform. With over 200 teams building on the Movement Testnet and a thriving ecosystem, $MOVE will play a vital role in delivering our vision of a more secure and efficient L2 solution. By combining the built-in security advantages of Move with the network effects of Ethereum, the Movement Network is enhancing Ethereum with next-generation smart contract capabilities.