Original | Odaily Planet Daily (@OdailyChina)
Author | Asher (@Asher_ 0210 )
The "big portion of pork trotter rice" for "money-grabbing party" is about to be served. This morning, Magic Eden Foundation announced the economics of ME tokens, of which 12.5% of the total supply will be used for token airdrops, and all will be unlocked at 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 the ME tokenomics announced by Magic Eden, Whales Market pre-market data 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 players in the Magic Eden community are relatively satisfied with the pre-market price performance and even believe that ME has the chance to surge to 3 to 4 dollars at launch.
ME Pre-market Price Situation
However, the floor price of Magic Tickets briefly rose to 0.24 SOL this morning before quickly retreating, and it has now fallen back to the level before the announcement of the ME token economics, currently reported at 0.179 SOL.
Magic Tickets Floor Price K-line Chart
Next, Odaily Planet Daily will bring you the latest updates on the Magic Eden project, ME token economic model, and preparations before the official token claim.
Project Introduction
Image source: Official Twitter
Magic Eden is a multi-asset on-chain trading platform, and through the ME token and Magic Eden Wallet, it achieves the unification of market and user experience, as well as a more robust business model.
Magic Eden co-founder Zedd stated in a blog: 'Magic Eden's core focus is on actual user engagement rather than just trading volume, as trading volume can be easily influenced by incentives. We focus more on analyzing user activity and actual revenue. Blur has performed excellently in incentivizing liquidity, which we consider a clever strategy. However, we always believe that the platform we pursue should not solely rely on liquidity incentives. We prefer to focus on user activity and revenue, as these metrics better reflect the platform's health. Moreover, we also recognize that over-relying on trading volume as a measure can be risky.'
According to official data, Magic Eden's cross-chain NFT and token trading volume has reached 600 million USD. The newly launched mobile product Magic Eden Wallet has reached 300,000 monthly active addresses. Additionally, Magic Eden is ranked first in the Bitcoin ecosystem DEX, with rune and inscription trading volume accounting for over 80%; on the other hand, it is also the largest NFT platform with the highest revenue and user share in the NFT ecosystem (60% revenue share, 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. The token distribution will be released over 4 years, with more than half allocated to the community. The specific distribution is as follows:
Initial Token Airdrop: 12.5 million tokens, accounting for 12.5% of the total supply. This portion will reward users from the Bitcoin, Solana, and EVM ecosystems, will be fully unlocked at TGE, and distributed to users via Magic Eden's mobile dApp, with any unclaimed amounts being returned to ME participants as part of future rewards;
Community and ecosystem: 37.7 million tokens, 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 distributed through reward programs; the remaining 15.2% of the total supply will be used for ecosystem development, including passionate advocates and creators looking to develop and support the protocol.
Contributors: 26.2 million tokens, accounting for 26.2% of the total supply. This portion will be allocated to project contractors, advisors, and company employees, with over 60% of the tokens in this portion locking for at least 18 months after TGE and then unlocking linearly;
Strategic Participants: 23.6 million tokens, accounting for 23.6% of the total supply. This portion is 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 and then unlock linearly.
ME Token Economics
According to the token release chart, ME will be fully distributed over 4 years, at which point all ME tokens will be fully circulated, with most allocated to the community.
ME Token Release Chart
At the same time, to ensure that the community and protocol are not affected by security issues, Magic Eden will appoint a security committee composed of 5 members, responsible for overseeing the multi-signature wallet. This committee can execute urgent actions as well as delayed non-urgent actions.
Speculations about the exchange of diamonds for tokens
Although the ME tokens account for up to 12.5% of the total supply for this airdrop, 'quick earners' are more concerned about the exchange ratio between the diamonds they mined and the tokens. The total supply of diamonds is 17 billion, and if calculated based on the full circulation of diamonds, the exchange ratio is 136:1.
According to feedback from administrators in the official Discord channel, the total number of diamonds mined by users across the network is still a certain distance 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 exchange for about 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 administrators in the official Discord regarding the total amount of diamonds
Preparations before Token Claim
With the publication of Magic Eden's token economic model, the date for the token airdrop is also approaching. To ensure that 'quick earners' can successfully claim tokens at the first opportunity, Odaily Planet Daily has compiled the following points of attention based on official information:
Before the Token Generation Event (TGE), users can check which wallets are eligible through a qualification 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, bringing you familiar with the process in advance);
On the day of TGE and thereafter, there will be a claim period during which eligible users can claim and stake ME tokens.
Therefore, similar to the test token claim process, the formal token claim will require downloading and installing the official Magic Eden wallet on a mobile device.
It is worth mentioning that the previous test token TestME was claimed and stated to have no monetary value. By participating, users can ensure their wallets are correctly linked and prepare to accept the official ME token claims, with over 250,000 wallets claiming at first opportunity.
In addition, 37.7% of the share in the ME token economic model is allocated to the community, which will likely be used for subsequent Magic Eden point-mining activities or airdrop rewards. Therefore, even if one misses this airdrop, there will still be opportunities to prepare for the second season of Magic Eden's token airdrop activities, and let us look forward to the opening performance of ME tokens from the currently most active trading platform in the NFT market, Magic Eden.
Summary
Currently, Magic Eden is the largest NFT platform with the highest revenue and user share, surpassing Blur and OpenSea (which will launch v2 in December). Although the release of the token economic model at this time and the planned token issuance in the coming weeks, as well as the potential second season of point-mining 'token earning' activities, will attract considerable attention from users in the short term, it is challenging to inject sustained attention and liquidity into the NFT sector under the current environment of 'rushing into Meme coins.'
If Magic Eden wants to reignite the NFT market through token issuance and ongoing token reward activities, it is undoubtedly a challenging goal. Currently, market attention towards NFTs has significantly declined, and even within the community, the term NFT has become more of an object of ridicule, with user interest nearly cooling off. As a 'pioneer in issuing tokens for the NFT market,' the Blur system once sparked a 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 consider.
