Original | Odaily Planet Daily (@OdailyChina)
Author | Asher (@Asher_ 0210)
The 'hairy party's' 'large pig trotter rice' is about to be served. This morning, the Magic Eden Foundation announced the ME token economics, of which 12.5% of the total supply will be used for token airdrops and will be fully unlocked at TGE. At the same time, Magic Eden co-founder and CEO Jack Lu stated in a post on X that ME tokens will be launched in a few weeks, and future community priority features will be introduced to reward loyal users, allowing users to earn ME tokens through daily use of Magic Eden products.
Affected by the ME token economics released by Magic Eden, the pre-market data for Whales Market shows that ME (Magic Eden) is currently priced at 2.5 USDT, with a 24H increase of 150% and a 24H trading volume exceeding 200,000 USD. Some major score manipulators in the Magic Eden community are relatively satisfied with the current pre-market price performance, even believing that ME has a chance to surge to 3 to 4 USD 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 ME token economic news was released, temporarily reported at 0.179 SOL.
Magic Tickets Floor Price K-line Chart
Next, Odaily Planet Daily will bring you the latest information 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 chain trading platform, and through the ME token and Magic Eden wallet, it achieves a unified market and user experience, as well as a stronger business model.
Magic Eden co-founder Zedd stated in a blog: 'The core focus of Magic Eden is on the actual usage of users, rather than simply 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, and we believe this 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 also aware that overly relying on trading volume as a measure may be risky.'
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. Additionally, 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, and 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, and will be fully unlocked at TGE, distributed to users through Magic Eden's mobile dApp. Any unclaimed amounts 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% of the total supply will be used to reward active users of the ME protocol, mainly through reward programs. The remaining 15.2% of the total supply will be used for ecosystem development, including enthusiastic advocates and creators who wish 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 TGE, with subsequent linear unlocking.
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 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 allocated within 4 years, at which point all ME tokens will be fully circulating, with most allocated to the community.
ME Token Release Chart
At the same time, Magic Eden will appoint a security committee consisting of 5 members to ensure that the community and protocol are not affected by security issues. This committee can execute emergency actions and delayed non-emergency actions.
Speculation on the exchange of diamonds for tokens
Although 12.5% of the total supply of token ME is used for this airdrop, the 'hairy party' is more concerned about the exchange ratio between the diamonds they brushed and the tokens. The total supply of diamonds is 17 billion, and if calculated based on 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 brushed by users across the network still has a significant gap 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 the off-market trading price of 2.5 USD, the value of this airdrop is approximately 250 USD.
The response from the channel administrator in the official Discord regarding the total amount of diamonds
Preparations before token claims
With the release of the Magic Eden token economic model, the date for the token airdrop is also approaching. To ensure the 'hairy party' can successfully claim tokens at the first opportunity, 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.
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 formal token claim will require downloading and installing the official Magic Eden wallet on mobile.
It is worth mentioning that the previous TestME token claim conducted by Magic Eden stated that it has no monetary value, allowing participating users to ensure their wallets are correctly linked and prepare for receiving the official ME token claim, but more than 250,000 wallets claimed in the first instance.
In addition, 37.7% of the share in the ME token economic model is allocated to the community. This portion of tokens is likely to be used for subsequent Magic Eden point brushing activities or airdrop rewards. Therefore, even if you miss this airdrop, there is still an opportunity to prepare in advance for Magic Eden's second season of token airdrop activities, and let us look forward to the opening performance of the currently most active trading platform in the NFT market, Magic Eden's token ME.
Summary
Currently, Magic Eden is the largest NFT platform by 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 the potential second season of point brushing 'token issuance' activities will attract a lot of user attention in a short period, it is difficult to inject sustained attention and liquidity into the NFT sector under the current environment of 'rushing Meme coins.'
If Magic Eden wants to reignite the NFT market through token issuance and continued token reward activities, it is undoubtedly a challenging goal. Currently, market 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 cooling off. As the 'pioneers of NFT market token issuance,' the Blur system once sparked a discussion on whether excessive financialization signals the requiem of NFTs, and whether not embracing financialization also leads to slow death. Perhaps whether the NFT industry can rise again is not just a question for NFT trading platforms.
