> For the complete documentation index, see [llms.txt](https://modulr.gitbook.io/modulr.cloud/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://modulr.gitbook.io/modulr.cloud/tokens-and-economy/tokenomics.md). # Tokenomics ## eMDR Token Info eMDR is Ethereum Modulr. It's an ERC-20 token backed 1:1 by MDR on the native chain. Once Modulr's mainnet launches (scheduled for late 2026), users will be able to bridge back and forth between eMDR on Ethereum and MDR on Modulr. Think of it in the same way that Bittensor TAO has TAO on their core blockchain, but it's called wTAO when it's Ethereum-based wrapped TAO. Same thing with Modulr, except the Ethereum-wrapped token (eMDR) came first and the native token (MDR) launches next. eMDR has a capped supply of 1,000,000 tokens with the following distribution schedule. #### Initial eMDR Token Distribution | Allocation | Percentage | | ------------------ | ---------- | | Initial Liquidity | 15.00% | | Future Liquidity | 10.00% | | Seed Sale | 5.00% | | Strategic Sale | 10.00% | | Marketing & OPEX | 15.00% | | Treasury & Testnet | 35.00% | | Team | 10.00% | #### eMDR Vesting Schedules * **Initial Liquidity:** 100% Unlocked at TGE * **Future Liquidity:** Multi-Sig Locked * **Seed Sale:** 20% TGE | 10-day cliff + 5 months linear * **Strategic Sale:** 30% TGE | 10-day cliff + 3 months linear * **Marketing & OPEX:** 25% TGE | 6 months linear * **Treasury & Testnet:** Multi-Sig Locked * **Team:** 12 month cliff + 12 months linear As of this writing (late Nov. 2025), \~85% of eMDR tokens are already in circulation. The tokens that have not yet been unlocked are largely from the Marketing & OPEX and Team allocations. *** ## MDR Token Info \[UPDATED] MDR will inherit the same capped token supply of 1,000,000 tokens as eMDR. Since both eMDR and MDR are Modulr tokens, they will share this total supply of 1M tokens. The supply of eMDR + MDR can never be greater than 1,000,000.
For example (assuming all vesting unlocks have finished), if there are 750,000 eMDR tokens in circulation, then there would be 250,000 MDR in circulation. This is because whenever someone bridges eMDR to MDR, the eMDR is first burned and an equal amount of MDR is issued on Modulr's mainnet to maintain the static 1,000,000 token cap across chains. This is a 1:1 bridge conversion—not a supply expansion. ### Static Token Supply Modulr's current token model is designed around a **static 1,000,000 token supply**. Network participation programs, grants, [Modulr. Missions](/modulr.cloud/testnet-and-participation/modulr-missions.md), service-provider compensation, and other ecosystem activities are intended to be funded through treasury resources, operational budgets, or tokens acquired from the ecosystem—rather than through passive staking rewards or holder-based emissions. Modulr is not currently using a staking model or passive holder-reward model. ### **Introducing: The Modulr Ecosystem Fund** Over a third of the original eMDR token allocation was reserved for Treasury, grants, and task-based participation programs. Going forward, this original allocation, plus additional funds from Marketing & OPEX and Future Liquidity—a total of 40% of eMDR/MDR supply—will be dedicated towards our new Modulr Ecosystem Fund. #### **Modulr Ecosystem Fund** 1. **Builder & Developer Grants**\ Support for tools, integrations, robotics projects, AI deployments, and open-source contributions built on Modulr. 2. **Provider Programs**\ Compensation for verified integration work by robotics fleets, AI model providers, compute providers, and enterprises connecting with Modulr's Modules. 3. **User Growth & Engagement**\ Optional, discretionary programs for documented testnet tasks, feedback, validation, teleoperation sessions, AI usage, community referrals, ambassadors, and [Modulr. Missions](/modulr.cloud/testnet-and-participation/modulr-missions.md) participation. 4. **Product Development & R\&D**\ Funding for platform upgrades across robotics, teleoperation, AI/compute layers, storage, Modules, UX improvements, and security/audit/bug bounties. 5. **Marketing & Ecosystem Expansion**\ Strategic campaigns, content partnerships, demos, regional community growth, and brand collaborations. 6. **Validator Programs**\ Support for early validator onboarding, compensation for verified network work, and decentralization programs as the network scales. The Ecosystem Fund supports network growth, builder activity, and ecosystem programs through discretionary, task-based allocations from treasury resources. Fund use is operational in nature and does not create token-holder entitlements, revenue share, yield, or investment returns. These programs will roll out progressively beginning with testnet in Q4 2025. #### **Treasury & Network Operations** Modulr may use treasury resources to support network operations, service-provider compensation for verified completed work, grants, [Modulr. Missions](/modulr.cloud/testnet-and-participation/modulr-missions.md), liquidity needs, infrastructure, and other ecosystem programs. Modulr may acquire tokens from the ecosystem when needed to support network operations, grants, Missions, liquidity needs, service-provider compensation, validator/operator programs, or other ecosystem activities. These actions are operational treasury decisions and should not be understood as price support, investment returns, revenue share, yield, or token-holder compensation. Treasury activity is operational in nature and should not be understood as a promise of token appreciation, holder returns, revenue share, yield, passive income, or any investment outcome. #### **Machine & Network Economics** Machine-generated activity on Modulr is part of the network's service economy. Robots, operators, validators, builders, AI providers, compute providers, storage providers, Module operators, and other service participants may receive compensation for verified work, completed usage, or service delivery under applicable program rules. Treasury activity related to machine or network activity is operational and does not create revenue share, yield, passive income, guaranteed rewards, or token-holder entitlements. *** The Modulr Ecosystem Fund and tokenomics plan create a long-term framework for network utility: MDR is intended for accessing and operating Modulr services, with compensation tied to verified work and published program rules—not passive token ownership. #### **Utility Token Disclaimer** eMDR and MDR are utility tokens for accessing and operating Modulr network services. They are not investments, securities, revenue-sharing instruments, or guarantees of profit, yield, passive income, token appreciation, or compensation.