Written by: Asher, Odaily Planet Daily
'Token farmers' are about to feast on 'big bowls of pork rice'. This morning, the Magic Eden Foundation announced ME token economics, where a total supply of 12.5% will be used for airdrops, all of which will be unlocked at TGE. Meanwhile, Magic Eden co-founder and CEO Jack Lu stated on X that the ME token will go live in a few weeks, and future community-first features will be launched to reward loyal users, who can earn ME tokens through daily use of Magic Eden products.
Due to the impact of Magic Eden's announcement of ME token economics, pre-market data from Whales Market shows that ME (Magic Eden) is currently reported at 2.5 USDT, with a 24H increase of 150% and a 24H trading volume exceeding 200,000 USD. Some major point-earning users in the Magic Eden community are quite satisfied with the current pre-market price performance, even believing that ME's opening may reach 3 to 4 dollars.
ME pre-market price situation
However, the floor price of Magic Tickets briefly rose to 0.24 SOL this morning before quickly retreating, and is currently back to the level before the release of ME token economics news, currently reported at 0.179 SOL.
Magic Tickets floor price K-line chart
Next, Odaily Planet Daily will promptly inform everyone about the Magic Eden project, ME token economic model, and preparations before the official token claiming.
Project Introduction
Source: Official Twitter
Magic Eden is a multi-asset on-chain trading platform that unifies market and user experience through the ME token and Magic Eden wallet, as well as a stronger business model.
Magic Eden co-founder Zedd stated in a blog: 'Magic Eden's core focus is on actual user activity, rather than merely trading volume, as this metric can be easily influenced by incentives. We focus more on analyzing user activity and real revenue. Blur has performed excellently in incentivizing liquidity, which we believe is a clever strategy. However, we have always believed that the platform we pursue should not solely rely on liquidity incentives. We prefer to focus on user activity and revenue, as these indicators can more accurately reflect the platform's health. Additionally, we are aware that overly relying on trading volume as a measure may carry risks.'
According to official data, Magic Eden's cross-chain NFT and token trading volume has reached 600 million USD, and the newly launched mobile product Magic Eden Wallet has 300,000 monthly active addresses. Furthermore, Magic Eden is the number one DEX in the Bitcoin ecosystem, with rune and inscription trading volume accounting for over 80%; on the other hand, it is also the leading NFT platform with the highest revenue and user share (60% revenue share and 29% user share).
Magic Eden related data
Token economic model
According to official information, Magic Eden's native token ME has a total supply of 1 billion tokens, and the token distribution will be released over 4 years, with more than half allocated to the community, detailed distribution as follows:
Initial token airdrop: 12.5 million tokens, accounting for 12.5% of the total supply, will reward users from the Bitcoin, Solana, and EVM ecosystems, all of which will be unlocked at TGE and distributed to users through Magic Eden's mobile dApp. Any unclaimed amount will be returned to ME participants as part of community distribution for future rewards;
Community and ecosystem: 37.7 million tokens, accounting for 37.7% of the total supply, of which 22.5% will be used to reward active users of the ME protocol, mainly distributed through reward programs; the remaining 15.2% will be used for ecosystem development, including passionate advocates and creators who wish to develop and support the protocol;
Contributors: 26.2 million tokens, accounting for 26.2% of the total supply, will be allocated to project contractors, consultants, and company employees, with over 60% of these tokens locked for at least 18 months after TGE, and subsequently released linearly;
Strategic participants: 23.6 million tokens, accounting for 23.6% of the total supply, will be allocated to all strategic participants who provided significant guidance during the formulation of the ME Foundation protocol, and this portion will be locked for at least 12 months after TGE, with subsequent linear unlocking.
ME token economics
According to the token release chart, ME will be fully distributed within 4 years, at which point all ME tokens will be in full circulation, with most allocated to the community.
ME token release chart
Meanwhile, Magic Eden will appoint a security committee consisting of 5 members to oversee the multi-signature wallet to ensure the community and protocol are protected from security issues. This committee can execute emergency actions as well as delayed non-emergency actions.
Speculations on the exchange of diamonds and tokens
Although the ME token allocates 12.5% of the total supply for this airdrop, 'token farmers' are more concerned about the exchange ratio between the diamonds they earned and the tokens. The total supply of diamonds is 17 billion, and if calculated based on full circulation, the exchange ratio would be 136:1.
According to feedback from admins in the official Discord channel, the total number of diamonds earned by users online still has a certain gap with the target of 17 billion diamonds. Therefore, many users speculate that the exchange ratio between diamonds and tokens may be close to 100:1. This means that an account with 10,000 diamond points can redeem approximately 100 ME tokens. Based on an off-market trading price of 2.5 USD, the value of this airdrop is approximately 250 USD.
Response from channel admins in the official Discord regarding the total amount of diamonds
Preparations before token claiming
With the announcement of the Magic Eden token economic model, the date for the token airdrop is also approaching. To ensure that 'token farmers' can successfully claim their tokens as soon as possible, Odaily Planet Daily has organized the following points of attention based on official information:
Before TGE, users can check which wallets are eligible through the eligibility checker, and users can also connect their wallets at this time, similar to the TestME application process (the TestME application process can refer to this article: Magic Eden is about to open testME airdrop claims, take you through the process in advance);
On the day of TGE and thereafter, there will be a claiming period during which eligible users can claim and stake ME tokens.
Therefore, similar to the test token claiming process, the official token claiming will require users to download and install the Magic Eden official wallet on their mobile devices.
It is worth mentioning that the previous test token TestME claiming indicated no monetary value, and users participating could ensure their wallets were correctly linked and prepare for the official ME token claiming, with over 250,000 wallets claiming in the first instance.
In addition, the ME token economic model allocates 37.7% of its share to the community, which is likely to be used for subsequent Magic Eden point farming activities or airdrop rewards. Therefore, even if users miss this airdrop, there will still be opportunities to prepare in advance for the second season of Magic Eden's token airdrop activities, and let us look forward to the opening performance of Magic Eden's token ME, the most active trading platform in the current NFT market.
Summary
Currently, Magic Eden is the leading NFT platform with the highest revenue and user share, surpassing Blur and OpenSea (which will launch v2 in December). Although releasing the token economic model at this time and planning to issue tokens in the coming weeks, along with potential second season point-earning 'token farming' activities, may attract considerable attention from users in the short term, it is difficult to inject sustained attention and liquidity into the NFT sector amidst the current 'surge in Meme coins' environment.
If Magic Eden wants to reignite the NFT market through token issuance and continuous token reward activities, it is undoubtedly a challenging goal. Currently, interest in NFTs in the market has significantly declined; even in the community, the term NFT has become more of a subject of mockery, with user interest nearly cooling off. As a 'pioneer in NFT market token issuance,' Blur once brought a wave of discussion about whether excessive financialization signals the elegy of NFTs, and whether not embracing financialization also leads to chronic death. Perhaps whether the NFT industry can rise again is not just a question for NFT trading platforms to ponder.
