Momentum ($MMT ) is the native token of the decentralized finance (DeFi) protocol operating on the Sui blockchain (Layer 1). The protocol serves as a liquidity engine and manages a decentralized exchange (DEX) in the form of a Concentrated Liquidity Market Maker (CLMM).
Ecosystem Development: Sui and Momentum
Momentum is directly linked to the development of Sui, which has seen significant adoption growth in recent months. Although Sui is a new platform (launched in 2023), its ecosystem development (Total Value Locked – TVL and the number of unique addresses) shows a steady upward trend. Momentum, as a key protocol in the Sui DeFi layer, contributes to this development:
Liquidity (TVL): The increase in the value of locked assets (TVL) in Momentum is closely correlated with the dynamic growth of liquidity across the Sui ecosystem in recent months.
Adoption: Sui focuses on usability and ease of integration (e.g., through features such as zkLogin), which translates into a growing user base in dApps that Momentum also benefits from.
Benefits of Holding MMT Token
Benefits for MMT token holders focus on passive income and governance participation, with their amount depending on network activity and decisions made:
Transaction Fees (Yield): Holders of locked MMT (earning veMMT) receive 100% of the transaction fees generated by the pools they voted on. The potential profit amount is therefore directly related to the trading volume in these pools.
Staking Rewards: Holding and locking MMT is a form of staking. Users earn newly issued MMT tokens, and their reward pool is determined based on veMMT voting (the so-called gauge voting), which makes this profit dynamically regulated by governance.
Unlike fixed rewards in older protocols, in the Momentum model, rewards are variable and depend on the active engagement of veMMT holders in protocol governance.
