Mantle: How BitDAO's Economic Model Transformation Serves L2 Development
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Mantle: How BitDAO's Economic Model Transformation Serves L2 Development
Mantle's success will hinge on its ability to deliver on its technological promises and capitalize on the growing demand for LSDFi solutions.
Navigating Web3 tides with focused insightsAuthors: VIKTOR DEFI, Foxi
Compiled by: TechFlow
Mantle Network is a Layer 2 blockchain incubated by the BitDAO team. Like Optimism and Arbitrum, it is built using Optimistic Rollup technology. Through modularity, its own data availability layer (DA), decentralized sequencers, and other advantages, Mantle enhances network throughput and scalability.
The benefit of this Layer 2 solution lies in its ability to share security with the Ethereum mainnet, reduce transaction fees through modular "compressed blocks," and increase the total on-chain transaction throughput.
What sets Mantle apart from other L2 solutions:
1.Modular Data Availability: By leveraging EigenLayer, Mantle achieves higher transaction throughput than traditional L2s. Accessible data availability also means Mantle can scale throughput without compromising security or overburdening validating nodes—reducing processing demands and promoting decentralization.
2.Multi-Party Computation (MPC): Mantle uses MPC to minimize trust risks associated with L2 execution outcomes. By employing Threshold Signature Scheme (TSS) technology, dedicated nodes contribute multi-party signatures to enhance correctness of off-chain transactions. This enables shorter withdrawal challenge periods.
3.Decentralized Sequencer: Mantle will decentralize its sequencer to provide secure and trustless block production. By rotating among a permissionless set of sequencers, Mantle reduces the risk of single points of failure or censorship on the network.
Relationship with BitDAO, Token, and Treasury
BitDAO has rebranded to Mantle and plans to build an ecosystem on top of its Layer 2 solution. The $BIT token of BitDAO has been converted to the $MNT token at a 1:1 ratio.
Regarding its updated treasury and tokenomics model, here are some key highlights:
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Mantle was incubated by BitDAO, which holds a $2 billion treasury, ranking among the top three DeFi treasuries.
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$MNT tokens will be used for governance, node staking, and potentially as collateral within the Mantle ecosystem.
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During the token conversion, 3 billion $BIT tokens were burned, reducing the total token supply by 30%. Currently, only 51% of the $MNT tokens are in circulation.
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Mantle proposes establishing a $200 million ecosystem fund over three years to develop more than 40 projects. The initial $100 million will come from BitDAO’s treasury.
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Mantle proposes allocating 200,000 ETH for staking and ecosystem development. The Mantle Economic Council will decide how treasury funds are distributed.
How is the $MNT Token Allocated?
There has been no formal discussion yet regarding overarching goals or constraints for $MNT token distribution. The core contributors team has only provided estimates of potential priorities.
Overall, MIP-22 discusses key aspects of the $MNT tokenomics model, including token design, conversion ratios, and allocation priorities. Actual macro-level goals and limits may be determined through further governance discussions and proposals. For now, the focus appears to be on incentivizing users, partners, and core contributors through $MNT token allocations.
Conclusion
Mantle aims to improve transaction throughput and reduce costs by adopting multiple approaches, including Optimistic Rollup, EigenLayer-based modular data availability, multi-party computation, and a more decentralized sequencer. However, the real-world effectiveness of these solutions remains to be seen. In terms of ecosystem development, most dApps on Mantle currently focus on gaming, with fewer DeFi or infrastructure offerings. Major Ethereum protocols have not yet integrated with Mantle.
Mantle's success will depend on its ability to deliver on its technological promises and capitalize on the growing demand for LSDFi solutions.
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Viktor DeFi
