Written by: Alex Liu, Foresight News
On November 26, Beijing time, the Movement Foundation announced the launch of the Movement network utility token MOVE. Movement is a Layer 2 public chain built on ETH, aimed at bringing the Move language into the Ethereum ecosystem. With the Sui coin price hitting new highs and Aptos making frequent moves, the Move public chain is gradually gaining momentum, and the TGE seems to have timed it well.
When will the tokens be issued?
The Movement Foundation has not announced a specific TGE time, but we can glean clues from relevant exchange information — Bybit Convert will launch MOVE on December 4, and the TGE will be earlier than this time, likely at the end of this month or in early December.
Token economics?
The total supply of MOVE tokens is 10 billion, with an initial circulation of about 22%. 60% of the total will be allocated to the community, including the ecosystem and community (40%), foundation (10%), and initial airdrop (10%).
Early contributors will receive 17.5%, and early investors will receive 22.5%. The MOVE tokens will gradually unlock over 60 months and will have their TGE on the Ethereum mainnet. The team and investors will not be able to participate in staking initially. The Movement Foundation states that after the MOVE token is launched on the mainnet (coming soon), holders of MOVE will be able to cross-chain to the Movement Network.
The 10% initial airdrop ratio is relatively good compared to recently launched projects, and the 60-month (5 years) lockup date spans a complete cryptocurrency '4-year cycle'. A longer token unlock period can force the team into long-termism and 'BUIDL' rather than relaxing after the token issuance.
The team and investors will not be able to participate in staking initially, and in response to criticism from TIA regarding 'investors selling staking rewards to break even,' they have provided corresponding measures, which is relatively pragmatic.
Token utility?
MOVE tokens will participate in staking, gas fees, decentralized governance, and other use cases as the native asset of the Movement network.
Staking for economic security
Once the Movement public mainnet is launched and staking is enabled, validators on Movement will be able to stake MOVE. As a reward for providing economic security to Movement, active validators will receive MOVE staking rewards.
Gas fees
The gas fees on the Movement network will be priced and paid in MOVE, with part of the fees used to cover the transaction settlement costs on Ethereum.
In the future, networks built using Move Stack are also expected to use MOVE to pay gas fees.
Governance and decentralization
MOVE holders will be able to propose governance proposals and vote on them to change certain network parameters.
Network native asset
MOVE will become the native asset of the Movement mainnet. Applications built on Movement can use MOVE for:
Provide liquidity
As collateral
Payment
More
Who will receive the airdrop?
The initial airdrop will account for 10%, and the primary targets for the airdrop are expected to be testnet participants, partner ecosystem projects, etc.
It is worth noting that the active addresses on the Movement testnet have exceeded 15.8 million, with a total of 680 million transactions (an average of over 40 transactions per address). Airdrop earnings for testnet addresses should not be expected to be too high.
The share of partner ecosystem projects is subjectively guessed by the author to be:
Active DeFi users in the Aptos ecosystem. Movement mainly supports Aptos Move, and most Aptos ecosystem projects are preparing to deploy to Movement.
POL stakers. Movement will integrate with Polygon's AggLayer solution to solve liquidity fragmentation issues.
First TGE, then mainnet?
Why will the MOVE token be launched before the Movement public mainnet?
To correctly initiate 'post confirmations'. Post confirmations is a mechanism that allows Movement to achieve finality in one second (or less).
The realization of Movement's 'post confirmations' mechanism requires pre-established economic security. By using MOVE tokens to establish economic security through liquidity deposit contracts before the public mainnet, Movement can achieve one second of finality through the 'post confirmations' mechanism upon launch.
Roadmap
Phase 1: Network genesis, MOVE token TGE, launch liquidity deposit contract
Phase 2: Launch of the Movement mainnet, achieving fast finality, MOVE token staking
Phase 3: MOVE Stack, MEVM, shared sequencer
Phase 4: Multi-asset staking
