- Hayes warns Monad fits the high-FDV, low-float pattern that often exposes retail buyers to price drops when insider tokens unlock.
- Hon says Monad avoids VC-heavy models, stressing fast withdrawals, 170 validators and tech like MonadBFT and Async Execution.
- Monad cites open-source audits, new developer activity, and a fairer MON sale method aimed at reducing concentrated token buys.
Arthur Hayes and Monad CEO Keone Hon exchanged direct views over the future of the new L1 Monad after Hayes warned that high-FDV, low-float tokens could drop sharply when insider allocations unlock. Hayes argued the setup exposes retail holders to heavy losses, while Hon countered that Monad’s design and structure differ from past L1 launches.
Hayes Flags High-FDV Risks
Hayes said Monad fits a pattern he calls “high-FDV, low-float VC coins,” which often fall once locked tokens enter markets. He added that many new L1 projects struggle to remain relevant and said only Bitcoin, Ethereum, Solana and Zcash appear positioned to endure.
His comments led to wider debate about how new networks handle early token structures. To connect these concerns with the technical debate, Hayes’ remarks drew attention to the relationship between circulation, early supply control and retail exposure.
Hon Outlines Monad’s Architecture
Hon responded through a public message, saying Monad does not follow the VC-driven model cited by Hayes. He noted that the network processes withdrawals from Coinbase in one to two seconds due to its new tech stack.
He also said Monad uses 170 distributed validators and aims to deliver high throughput without reducing decentralization. Hon then linked these claims to the project’s internal design. He highlighted MonadBFT, which addresses tail forking issues in pipelined consensus.
He also pointed to Async Execution, which lets execution and consensus run separately, along with a JIT compiler, a new database called MonadDb, RaptorCast for propagation and parallel execution.
Token Distribution and Growing Ecosystem
Hon said the early ecosystem includes new applications built by emerging teams and stressed that the Monad codebase is fully open source and audited.
He added that the project launched the MON token through Coinbase’s token sales platform using a “fill from the bottom” method to reduce concentrated purchases. To close his response, Hon invited Hayes to test the network and offered to send him MON for evaluation.
