Article reprinted from: Odaily Planet Daily
Original | Odaily Planet Daily (@OdailyChina)
Author | Asher (@Asher_0210)
The "big pork leg rice" for the "money-grabbing party" is about to start. This morning, the Magic Eden Foundation announced the economics of the ME token, of which 12.5% of the total supply will be used for token airdrops, and all will be unlocked at the TGE. At the same time, Magic Eden co-founder and CEO Jack Lu posted on X that the ME token will be launched in a few weeks, and community priority features will be launched in the future to reward loyal users. Users can earn ME tokens through daily use of Magic Eden products.
Affected by 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 24-hour increase of 150% and a 24-hour trading volume of over 200,000 US dollars. Some big score-boosting users in the Magic Eden community are quite satisfied with the current pre-market price performance, and even think that ME has a chance to hit 3 to 4 US dollars when it opens.
ME pre-market price situation
However, the floor price of Magic Tickets briefly rose to 0.24 SOL this morning and then quickly fell back. It has now fallen back to the level before the release of the ME token economics news, temporarily reporting 0.179 SOL.
Magic Tickets Floor Price K-line Chart
Next, Odaily Planet Daily will be the first to let you know about the Magic Eden project, the ME token economics model, and the preparations before the official application for the token.
Project Introduction
Image source: Official Twitter
Magic Eden is a multi-asset on-chain trading platform that unifies the market and user experience, as well as a more powerful business model, through ME tokens and the Magic Eden wallet.
Magic Eden co-founder Zedd said in a blog post: "Magic Eden's core focus is on the actual usage of users rather than pure transaction volume, because the transaction volume indicator is easily affected by incentives. We are more focused on analyzing user activity and actual income. Blur has performed well in incentivizing liquidity, which we think is a clever strategy. However, we always believe that the platform we pursue should not rely solely on liquidity incentives. We prefer to focus on user activity and revenue because these indicators can better reflect the health of the platform. In addition, we also realize that over-reliance on transaction volume as a metric can be risky."
According to official data, Magic Eden's current cross-chain NFT and token transaction volume has reached $600 million, and the monthly active addresses of its latest mobile product Magic Eden Wallet have reached 300,000. In addition, Magic Eden is the No. 1 DEX in the Bitcoin ecosystem, accounting for more than 80% of the rune and inscription transaction volume; on the other hand, it is also the largest NFT platform with the highest revenue and user share in the NFT ecosystem (revenue share accounts for 60%, user share accounts for 29%).
Magic Eden Stats
Token Economic Model
According to official information, Magic Eden's native token ME has a total supply of 1 billion tokens. The token distribution will be released within 4 years, of which more than half will be allocated to the community. The specific distribution is as follows:
Initial token airdrop: 12.5 million, accounting for 12.5% of the total supply. This part will be rewarded to users of the Bitcoin, Solana, and EVM ecosystems. All will be unlocked at TGE and distributed to users through Magic Eden’s mobile dApp. The unclaimed amount will be returned to ME participants as part of the community allocation as a future reward;
Community and Ecosystem: 37.7 million, accounting for 37.7% of the total supply, of which 22.5% of the total supply will be used to reward active users of the ME protocol, mainly through the reward program; the remaining 15.2% of the total supply will be used for ecosystem development, including enthusiastic advocates and creators who want to develop and support the protocol;
Contributors: 26.2 million, accounting for 26.2% of the total supply. This part will be allocated to project contractors, consultants and company employees, and more than 60% of the tokens in this part will be locked for at least 18 months after TGE and unlocked linearly thereafter;
Strategic Participants: 23.6 million, accounting for 23.6% of the total supply. This portion is allocated to all strategic participants who provided important guidance in the development of the ME Foundation protocol, and this portion will be locked for at least 12 months after TGE and unlocked linearly thereafter.
ME Token Economics
According to the token release chart, ME will be distributed within 4 years, at which time all ME tokens will be fully circulated and the majority will be distributed to the community.
ME Token Release Chart
At the same time, in order to ensure that the community and the protocol are protected from security issues, Magic Eden will appoint a 5-member security committee to oversee the multi-signature wallet, which can perform both emergency actions and delayed non-emergency actions.
Speculations on the exchange of diamonds and tokens
Although 12.5% of the total supply of ME tokens is used for this airdrop, the "fleecing party" is more concerned about the exchange ratio between the diamonds they brushed and the tokens. The total supply of diamonds is 17 billion. If calculated based on the full circulation of diamonds, the exchange ratio is 136:1.
According to the feedback from administrators in the official Discord channel, the total amount of diamonds swiped by users across the network is still a certain distance away from the target of 17 billion diamonds. Therefore, many users speculate that the exchange ratio of diamonds to tokens may be close to 100:1. This means that an account with 10,000 diamond points can be exchanged for about 100 ME tokens. Based on the over-the-counter trading price of $2.5, the value of this airdrop is about $250.
The channel administrator's response to the total amount of diamonds in the official Discord
Preparations before claiming tokens
With the announcement of the Magic Eden token economic model, the token airdrop date is approaching. In order to ensure that the "money-grabbing party" can successfully claim the tokens as soon as possible, Odaily Planet Daily has compiled the following points of attention based on official information:
Prior to the TGE, users can check which wallets are eligible via the Eligibility Checker, and users can also connect their wallets at this time, similar to the TestME application process;
On and after the TGE day, there will be a claiming period during which eligible users can claim and stake ME tokens.
Therefore, similar to the test token claiming process, you will need to download and install the Magic Eden official wallet on your mobile phone when claiming official tokens.
It is worth mentioning that Magic Eden’s previous test coin TestME claim stated that it had no monetary value. By participating, users can ensure that their wallets are correctly linked and prepared to accept official ME token claims, but more than 250,000 wallets claimed it in the first place.
In addition, 37.7% of the shares in the ME token economic model are allocated to the community, and these tokens are likely to be used for subsequent Magic Eden points swiping activities or airdrop rewards. Therefore, even if you miss this airdrop, you still have the opportunity to prepare for the Magic Eden Season 2 token airdrop event in advance. Let us also look forward to the opening performance of Magic Eden, the most active trading platform in the NFT market, and its token ME.
summary
Currently, Magic Eden is the largest NFT platform in terms of revenue and user share, surpassing Blur and OpenSea (v2 will be launched in December). Although the release of the token economic model at this time and the plan to issue tokens in the next few weeks, as well as the potential second season of points-swiping "token-swiping" activities will attract a lot of users' attention in a short period of time, it is difficult to inject sustained attention and liquidity into the NFT sector in the current environment of "rushing for Meme coins".
If Magic Eden wants to detonate the NFT market again through currency issuance and continuous token reward activities, it will undoubtedly be a challenging goal. Currently, the market's attention to NFT has declined significantly. Even in the community, the term NFT has become more of an object of ridicule, and user interest has almost cooled down. As the "pioneer of currency issuance in the NFT market", Blur once brought a wave of discussion on whether excessive financialization will play the elegy of NFT, and whether not embracing financialization is also a slow death. Perhaps, whether the NFT industry can revive is not just a question for NFT trading platforms to consider.
