As blockchain technology grows increasingly multichain, the challenge isn’t just building secure and scalable applications but connecting them across ecosystems. That’s where Moonbeam enters the picture.
Positioned as Polkadot’s Ethereum-compatible smart contract platform, Moonbeam brings together the best of both worlds: Ethereum’s widespread developer tools and Polkadot’s seamless interoperability.
Let’s break down what Moonbeam is, how it works, the two networks that power it, its tokens and economics, and why this project matters in the broader Web3 landscape.
What Is Moonbeam?
Moonbeam is a Layer-1 smart contract platform built on Polkadot, designed to serve as the bridge between Ethereum-based applications and the multichain future.
Officially launched in January 2022, Moonbeam quickly gained traction by winning a Polkadot parachain slot through a crowdloan campaign that raised over 35 million DOT (worth $1.4 billion at the time).
Source: MoonBeam
That backing wasn’t just financial, it was a community validation of Moonbeam’s mission: to simplify cross-chain app development.
Unlike many chains that require custom tooling, Moonbeam is fully Ethereum-compatible. Developers can deploy Solidity smart contracts, interact with dApps using MetaMask, and tap into Ethereum libraries like Hardhat and Web3.js, all while benefiting from Polkadot’s speed, scalability, and security.
With an average block time of 5 seconds, finality within 30 seconds, and transaction fees as low as $0.019, Moonbeam is built for performance.
Through Polkadot’s cross-consensus messaging (XCM), Moonbeam allows seamless communication between parachains. That means dApps on Moonbeam can interact not only with Ethereum but also with other Polkadot projects like Acala, Astar, and HydraDX, unlocking true multichain experiences.
The Two Networks: Moonbeam and Moonriver
The Moonbeam ecosystem consists of two main networks, Moonbeam and Moonriver, each playing a distinct role.
Source: Moonbeam
Moonbeam is the mainnet deployed on the Polkadot relay chain. It’s the production-ready platform where serious dApps go live. Developers can access robust tools, build decentralised applications with full EVM compatibility, and plug directly into Polkadot’s ecosystem.
Moonbeam’s native token is Glimmer (GLMR), which powers everything from gas fees to governance.
Moonriver, on the other hand, is Moonbeam’s canary network on Kusama. Think of it as a testing ground with real economic conditions. New features, upgrades, and dApps are deployed here first before heading to Moonbeam.
It also runs as a parachain with its token, Moonriver (MOVR). While the functionality mirrors Moonbeam, Moonriver is community-led and moves at a faster pace, making it ideal for experimentation.
Both networks share the same tech stack and Ethereum compatibility, but Moonriver’s experimental nature allows it to serve as a proving ground for Moonbeam’s innovations.
Tokenomics: GLMR and MOVR
Moonbeam and Moonriver each have their native token with similar utilities but different token distributions and economic models.
GLMR: Glimmer Token
GLMR is Moonbeam’s utility token. It’s used to pay for smart contract execution, participate in governance, stake for network security, and cover transaction fees.
Source: Moonbeam
As of March 2025, there are roughly 700 million GLMR in circulation out of a 1 billion total supply, giving the token a market cap of approximately $180 million. At launch, GLMR reached a high of $19 but currently trades around $0.25, a reflection of broader market conditions.
Initial GLMR distribution included:
- 15% for the 2021 crowdloan contributors
- 10% for the Take Flight community event
- 20% for the team and advisors (subject to vesting)
- 16.7% for long-term protocol development
- 5% for liquidity programmes
- 14% and 12%, respectively, for seed and strategic funders
Moonbeam targets an annual inflation of 5% to maintain parachain slots and incentivise collators (block producers). Of all network fees, 80% are burned, providing deflationary pressure, and 20% go to an on-chain treasury governed via OpenGov, Polkadot’s upgraded governance framework.
MOVR: Moonriver Token
MOVR powers the Moonriver network and serves similar roles: covering transaction fees, staking, and participating in governance.
Source Moonbeam
At genesis, Moonriver’s total supply was capped at 10 million tokens, with no founders’ allocation. Instead, 30% of MOVR was distributed via a Kusama crowdloan, and the remainder was allocated to community initiatives, development programmes, and a parachain bond reserve.
MOVR shares the same inflation model as GLMR, with 5% annual inflation split between collator rewards, staking incentives, and parachain sustainability. Like GLMR, 80% of transaction fees are burned, with the rest directed to Moonriver’s treasury.
This economic alignment ensures that both networks remain self-sustaining while rewarding active participants and developers.
Features and Ecosystem Highlights
Moonbeam isn’t just about cross-chain dreams, it’s delivering them. The ecosystem now boasts over 250 projects, covering DeFi, NFTs, DePIN, RWAs, and gaming.
Key features include:
- XC-20 Tokens: These are ERC-20 compatible representations of native assets from Polkadot parachains, allowing seamless integration with EVM tools.
- Gasless Transactions: dApps can sponsor user fees for better UX.
- Moonbeam Routed Liquidity (MRL): Launched in 2023, MRL lets dApps tap into liquidity from external ecosystems.
- XCM-to-EVM Integration: Developers can call Polkadot-native functions directly from EVM-based dApps.
- Advanced Precompiles: On-chain randomness, batch transactions, and cross-chain calls enhance functionality beyond typical EVM limits.
Projects like Beamswap, Moonwell, StellaSwap, and EVRLoot are leading the way in DeFi and gaming. Meanwhile, Moonbeam is also pushing boundaries in RWAs through partners like Carbify and through decentralised infrastructure via Diode.
Source: Moonbeam
For builders, the appeal is clear: frictionless deployment, powerful tools, and access to multi-chain assets. For users, it means lower fees, faster finality, and truly decentralised experiences.
Moonbeam prides itself on being developer-first. Whether you’re porting over an Ethereum dApp or starting fresh, you’ll find familiar tools like MetaMask, Hardhat, Truffle, Remix, and Web3.js fully supported.
Moonbeam also offers test environments like Moonbase Alpha and a local dev node for rapid prototyping.
The governance system is powered by OpenGov, allowing GLMR and MOVR holders to propose and vote on referenda directly. From protocol upgrades to treasury spending, community members have full control, ensuring decentralisation in practice, not just in theory.
For early-stage builders, grants and funding are available to accelerate ideas into production. Both Moonbeam and Moonriver offer structured grant programmes for promising teams building impactful dApps.
As the blockchain world edges closer to a truly multichain reality, Moonbeam sits at the crossroads. It connects Ethereum’s massive developer base with Polkadot’s scalable, secure infrastructure.
Its native support for EVM, XCM, and developer tooling makes it one of the most practical options for launching multichain applications today.
With over $120 million in total value locked, integrations with Chainlink, The Graph, and Uniswap, and a $100 million ecosystem fund co-launched with Arrington Capital, Moonbeam is more than a concept, it’s an operational, growing Layer-1 hub.
And as Polkadot 2.0 continues to unfold, Moonbeam’s role as a bridge-builder across blockchains is likely to grow even more critical.
Conclusion
Moonbeam and Moonriver aren’t just another pair of Layer-1 chains, they’re foundational pillars for the multichain future.
By combining Ethereum familiarity with Polkadot innovation, they make it easier for developers to go multichain and for users to enjoy decentralised applications without compromise.
Whether you’re a builder, investor, or user, Moonbeam offers a gateway into a seamless, interoperable Web3, which is exactly what blockchain needs next.