Original title: (With the token issuance imminent, can Magic Eden reignite the NFT market?)
Original author: Asher, Odaily Planet Daily
"Token farmers' 'big pork rice' is about to be served. This morning, the Magic Eden Foundation announced the ME tokenomics, of which 12.5% of the total supply will be used for the token airdrop and will be fully unlocked at the TGE. At the same time, Magic Eden co-founder and CEO Jack Lu posted on X that the ME token will launch in a few weeks, and community-first features will be introduced in the future to reward loyal users, allowing users to earn ME tokens through daily use of Magic Eden products.
Affected by the announcement of ME tokenomics by Magic Eden, 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. Some score-brushing heavyweights in the Magic Eden community are quite satisfied with the current pre-market price performance and even believe that ME has the potential to surge to $3 to $4 upon opening.
ME Pre-Market Price Situation
However, the floor price of Magic Tickets briefly rose to 0.24 SOL this morning before quickly falling back, currently returning to the level before the announcement of the ME tokenomics, temporarily reported at 0.179 SOL.
Magic Tickets Floor Price K-Line Chart
Next, Odaily Planet Daily will be the first to bring you insights on the Magic Eden project, ME tokenomics model, and the preparations before the official token claim.
Project Introduction
Source of the image: Official Twitter
Magic Eden is a multi-asset on-chain trading platform that achieves the unification of market and user experience through the ME token and Magic Eden wallet, 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 usage rather than merely trading volume, as this metric can easily be influenced by incentives. We focus more on analyzing user activity and actual 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 metrics can more accurately reflect the health of the platform. Moreover, we recognize that overly 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, with the recently launched mobile product Magic Eden Wallet having 300,000 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 largest NFT platform in terms of revenue and user share in the NFT ecosystem (with a revenue share of 60% and a user share of 29%).
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, with token distribution set to be released over 4 years, more than half of which will be allocated to the community, with specific distribution 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 the TGE, and will be distributed to users through Magic Eden's mobile dApp, with any unclaimed amounts returned to ME participants as future rewards.
Community and Ecology: 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 enthusiastic advocates and creators hoping 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, consultants, and company employees, and over 60% of the tokens in this portion will be locked for at least 18 months after the TGE and will be unlocked linearly thereafter;
Strategic Participants: 23.6 million tokens, accounting for 23.6% of the total supply, this portion is allocated to all strategic participants who provided important guidance during the formulation of the ME Foundation protocol, and this portion will be locked for at least 12 months after the TGE and will be unlocked linearly thereafter.
ME Tokenomics
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 the majority 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 consisting of 5 members to oversee the multi-signature wallet. This committee can execute emergency actions as well as delayed non-emergency actions.
Speculation on the exchange of diamonds and tokens
Although 12.5% of the total supply of the ME token is allocated for this airdrop, the 'token farmers' are more concerned about the exchange rate between their brushed diamonds and tokens. The total supply of diamonds is 17 billion, and if calculated based on complete circulation of diamonds, the exchange rate would be 136:1.
According to feedback from administrators in the official Discord channel, there is still a gap between the total amount of diamonds brushed by users across the network and the target of 17 billion diamonds. Therefore, many users speculate that the exchange rate 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, the value of this airdrop is approximately $250.
Response from channel administrators in the official Discord regarding the total amount of diamonds
Preparations before token claims
With the announcement of Magic Eden's token economic model, the date of the token airdrop is also approaching. In order for 'token farmers' to successfully claim tokens at the earliest, Odaily Planet Daily has organized the following points of attention based on official information:
Before the TGE, users can check which wallets are eligible through the 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 the TGE and thereafter, there will be a claiming period during which eligible users can claim and stake ME tokens.
Therefore, similar to the TestME token claiming process, the formal token claim will require downloading and installing the official Magic Eden wallet on the mobile end.
It is worth mentioning that previously, Magic Eden conducted a TestME token claim and stated that it had no monetary value. By participating, users could ensure their wallets were correctly linked and prepared for receiving the official ME token claim, but over 250,000 wallets claimed immediately.
Additionally, 37.7% of the share in the ME token economic model is allocated to the community, and this portion of tokens is likely to be used for subsequent Magic Eden score brushing activities or airdrop rewards. Therefore, even if you miss 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 performance of the ME token from the currently most active trading platform in the NFT market, Magic Eden.
Summary
Currently, Magic Eden is the largest NFT platform in terms of revenue and user share, surpassing Blur and OpenSea (which will launch v2 in December). Although the release of the token economic model and plans to issue tokens in the coming weeks, along with the potential second season score brushing 'token farming' activities, will attract considerable attention from users in the short term, it is difficult to inject sustained attention and liquidity into the NFT sector under the current environment of 'rushing to memes'.
If Magic Eden wants to reignite the NFT market through token issuance and continuous token reward activities, it is undoubtedly a challenging goal. Currently, the market's attention to NFTs has significantly declined, and even within the community, the term NFT has become more of a subject of ridicule, with user interest nearly cooled. As the 'pioneer of token issuance in the NFT market,' Blur has sparked discussions about whether excessive financialization signals the elegy of NFTs or whether not embracing financialization is also a slow death. Perhaps the question of whether the NFT industry can rise again is not only a concern for NFT trading platforms.
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