# Mysten Labs Financial Model

Mysten Labs builds foundational web3 infrastructure (smart contract language, consensus, SDK) and monetizes via token stakes in partner networks.

- Canonical: https://finamodel.com/startups/mysten-labs
- Excel download: https://finamodel.com/startup-models/mysten-labs.xlsx
- Category: Crypto/Web3
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $300M
- Founded: 2022
- Geography: Not in deck (team previously at Facebook/Novi; global remit implied).
- Customer: B2B2C

## About the company

Mysten Labs develops foundational Web3 components, including the Move smart-contract language, Narwhal consensus technology, and a future Polaris developer platform. Rather than beginning with a single new chain, it planned to launch open networks or co-develop with existing L1 and L2 ecosystems.

Its economic model is token-based: partner networks grant token stakes in exchange for integration work, while Mysten can retain tokens from networks it launches. The deck records co-development agreements with Celo and Sommelier and targets additional partners, but provides no recurring SaaS revenue or disclosed token values.

Model partner agreements, token-stake percentages, grant values, vesting schedules, and token liquidation for operating cash. Keep mark-to-market treasury value distinct from cash realised, then layer R&D headcount and infrastructure burn beneath it. Partner count, vesting, token-price scenarios, launch timing, and liquidation rates determine runway far more than conventional ARR metrics.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- **Polaris web3 platform**: abstraction layer over L1/L2 complexity; lets developers build, deploy, and manage web3 products without dealing with underlying chain differences.
- **Core open-source components** (the actual IP):
  - **Move**: modern, safe smart contract language (from Diem/Facebook).
  - **Narwhal**: mempool/DAG-based consensus providing order-of-magnitude throughput uplift for PoS chains.
  - **KELP / Tusk**: mentioned in roadmap alongside Move and Narwhal; details redacted.
  - **Polaris SDK**: rich developer frameworks targeting 2024 release.
- **GTM strategy**: launch each component as a standalone open network (tokenized) or co-develop into existing L1s/L2s in exchange for token stakes - not a bottom-up "build a new L1" play (though Polaris L1 is a future phase).

## Revenue model

Two streams, both token-economics-based:
1. **Token launch / network ownership**: Launch open network projects with tokenization models; Mysten retains founding/protocol tokens.
2. **Co-development token stakes**: Partner L1/L2 networks grant Mysten Labs a stake (in partner network tokens) in exchange for integrating Narwhal, Move, KELP, or Tusk. Specific stake percentages/values are fully redacted.
   - 2021/22: stake in CELO and Sommelier networks for co-dev signed agreements.
   - 2023: targeting 3 additional networks.
   - 2024: targeting 4 additional networks.

No cash/SaaS/subscription revenue described. Revenue realization depends on token price at time of vesting/sale.

## Traction & metrics

- Co-dev agreements signed: Celo and Sommelier.finance.
- Narwhal: engineering complete Q4 2021; integration with major L1 targeted Q4 2021.
- Core protocol R&D complete on first project; testnet within 6 months.
- Token stake agreements reached in two partner networks (amounts redacted).
- No revenue, user, or transaction-volume figures disclosed.

## Competition / moat

Not explicitly addressed in deck. Implied moats:
- Pedigree: former Facebook/Novi Research leads; created Move language and Narwhal protocol.
- IP: proprietary protocol components (Move, Narwhal, KELP, Tusk) already in production R&D.
- First-mover lock-in: "first mover advantage" language used for L1 partner token grants.
- Academic depth: Chief Scientist George Danezis, 100+ papers, co-founder of Chainspace (acquired by Facebook).

## Team & funding ask / use of funds

**Team:**
- Evan Cheng - CEO; former Sr. Director R&D, Novi Research (Facebook); previously Apple; ACM Award 2012.
- Sam Blackshear - CTO; Principal Engineer Novi Research; tech lead of Move language; Facebook Fellowship 2014.
- Adeniyi Abiodun - COO; former Sr. Staff PM Novi Research; Oracle/VMWare blockchain product lead; founded bitcoin mining company 2012.
- George Danezis - Chief Scientist; Professor UCL; former Novi Research Principal; Chainspace co-founder (acquired by Facebook 2019); 100+ papers.

**Funding ask / use of funds:** Fully redacted - round size, valuation, and use of proceeds are not visible in deck.

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## Recommended financial model

- **Archetype + why**: **Token-economics treasury / protocol revenue model** - not a standard SaaS or operating P&L. Revenue is driven by (a) token grants from partners (mark-to-market holdings) and (b) own-network token launch proceeds. The closest analog is a crypto protocol treasury model combined with a venture-style portfolio of token positions. No recurring cash subscription exists.

- **Forecast horizon & granularity**: 2021–2025 annual (matching roadmap milestones); quarterly for 2022 near-term to track partner integrations against plan.

- **Key drivers & assumptions**:
| Driver | Value / Assumption |
| -- | -- |
| Co-dev partners signed per year | 2 in 2021/22, 3 in 2023, 4 in 2024 |
| Avg token stake per co-dev partner (% of partner network) | Unknown - redacted |
| Dollar value of token stakes at grant | Unknown - must be modelled with sensitivity to partner token price |
| Vesting schedule on partner token grants | 2–4 year linear vest, typical for protocol partnerships; confirm with company |
| Own-network (Polaris L1) token supply / Mysten reserve % | Unknown; 20–30% founder/protocol reserve, standard for L1s |
| Polaris L1 token launch date | 2024 |
| Token price appreciation | model flat (at grant price) as base; flex in scenarios |
| Treasury management / token liquidation rate | 10–20%/yr liquidation of vested tokens for operating cash |

- **Scenarios (Base / Bull / Bear - which variables flex)**:
  - **Base**: Partner count per roadmap; flat token prices at grant; standard vesting.
  - **Bull**: 2× partner count; token prices 3× at vest; Polaris L1 token valued at top-quartile L1 comparable at launch.
  - **Bear**: 1 partner per year (slow adoption); token prices -70% from grant (crypto bear market); Polaris L1 delayed to 2025.

- **Required sheets / outputs**:
  1. **Partnership pipeline**: year-by-year partner count, token stake %, token grant $ value at grant date.
  2. **Token treasury**: holdings by partner/own-network, vesting schedule, mark-to-market, liquidation plan.
  3. **P&L / cash burn**: headcount, R&D opex, G&A; cash from token liquidations vs. equity raises.
  4. **Runway**: months of cash given burn rate and liquidation schedule.
  5. **Sensitivity table**: portfolio value vs. token price × number of partners.
  6. **Scenario toggle**: Base / Bull / Bear on a single assumptions sheet.

## Frequently asked questions

### Is the Mysten Labs financial model free?

Yes. The Mysten Labs model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.