Monad Prioritizes Organic Growth Over Incentive-Driven TVL, Embracing "Brick by Brick" Development

Monad, the newly launched high-performance Layer 1 blockchain, is deliberately eschewing aggressive incentive-driven Total Value Locked (TVL) strategies, opting instead for a "longer path" of organic ecosystem development. This approach, articulated by a social media user identified as Abdul, emphasizes sustainable growth over rapid, potentially unsustainable, liquidity acquisition. The move positions Monad to build a robust foundation, drawing parallels to the early growth trajectories of established networks like Ethereum and Solana.

"Too much TVL is a liability on a new chain," Abdul stated in a recent social media post, addressing a "common question" regarding Monad's TVL figures. The statement highlights a critical perspective within the blockchain space, suggesting that early, incentivized liquidity can be fleeting if not supported by genuine utility and retention mechanisms. Abdul further explained, "attracting TVL with incentives is not the hard part, retention after incentives is the hard part."

Monad, which recently launched its mainnet on November 24, 2025, with a $225 million funding round led by Paradigm, aims to deliver 10,000 transactions per second (TPS) with full Ethereum Virtual Machine (EVM) compatibility. Despite its high technical capabilities and significant backing, the project's leadership appears committed to fostering an ecosystem where liquidity is productive and retained through intrinsic value rather than temporary boosts. This strategy seeks to avoid the pitfalls of "mercenary capital" that often leaves chains once incentives dry up, leading to instability.

The "brick by brick" philosophy championed by Monad suggests a focus on developer adoption, dApp creation, and genuine user engagement. Industry analysts often point to the challenges new blockchains face in converting initial, incentivized TVL into sticky, long-term capital. By prioritizing a more deliberate build-out, Monad aims to cultivate a resilient and self-sustaining decentralized finance (DeFi) environment, mirroring the foundational growth seen in early blockchain pioneers.