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Marlin is a layer-0 protocol focussed on network-layer performance and security. Think of it as SilverPeak for blockchains or Akamai for decentralized storage. This means that Marlin could be a backend to Polkadot, Near, Solana, xDai, Matic, Filecoin - at the same, supporting them from the ground up. Check out this article for a high level overview.

Validators, miners and communities of different blockchains are thus important stakeholders in the Marlin network. After several months of hard work, we’re happy to share the distribution mechanism of our network tokens POND and MPOND to facilitate inclusive governance, provide strong economic security and foster development of a critical piece of web 3.0 infrastructure.

Design Rationale

Being at the base layer imposes strict requirements on Marlin to provide strong security and decentralization guarantees expected by blockchains. Not unlike blockchain platforms themselves which require years of real-world testing to display their characteristics before an ecosystem develops around them, the deployment of the Marlin network is the first step in its goal to establish itself as the de facto incentivized networking layer.

Incentives and consequently the nature of token ownership affect the evolution of a network. Hence, it is important to ensure that tokens are distributed in a way that ensures that the network develops to meet its envisaged purpose. Some factors that went into the design of the Marlin Token distribution include:

The Network Tokens

The Marlin economy uses two Ethereum-based tokens - POND and MegaPOND (MPOND). While POND is initially transferable, MPOND is not (with a few exceptions such as the token distribution contract and transfers to/from a bridge). The bridge allows conversion from 1,000,000 POND to a 1 MPOND and vice versa while imposing certain restrictions (described later).

The total supply of POND is 10 billion. Thus, there can only exist up to 10,000 MPOND.

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As an example (find actual numbers in further sections): if there exist 6 billion POND in circulation, 6000 MPOND is locked in the bridge to back future conversions. Correspondingly, 4 billion POND is locked in the bridge to back the 4000 MPOND distributed amongst users.

Note 1: MPOND is also referred to as LIN.

Note 2: The MPOND-POND design is similar to the MSRM-SRM design used by Serum.

The Token Utility

A Marlin node relays and caches data. Every Marlin node is required to stake at least 0.5 MPOND. The node receives staking rewards and fees based on its performance. Both MPOND and POND can be delegated towards other Marlin nodes. In such cases, delegators share a portion of their rewards with the node operator.