Original | Odaily Planet Daily (@OdailyChina)
Author | Asher (@Asher_0210)
The 'haircut gang's' 'large portion of 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. Meanwhile, Magic Eden co-founder and CEO Jack Lu posted on X stating that the ME token will go live in a few weeks and that community-first features will be launched in the future to reward loyal users, allowing users to earn ME tokens through regular use of Magic Eden products.
Affected by the announcement of ME token economics by Magic Eden, the pre-market data from Whales Market shows that ME (Magic Eden) is currently at 2.5 USDT, with a 24H increase of 150% and a 24H trading volume exceeding 200,000 USD. Some major score-boosting users in the Magic Eden community are quite satisfied with the current pre-market price performance and even believe 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 economics announcement, at approximately 0.179 SOL.
Magic Tickets Floor Price K-Line Chart
Next, Odaily Planet Daily will promptly bring everyone up to speed on the Magic Eden project, the ME token economics model, and the preparations before the formal token claiming.
Project Introduction
Image Source: Official Twitter
Magic Eden is a multi-asset on-chain trading platform that integrates the market and user experience through the ME token and Magic Eden wallet, as well as a more powerful business model.
Magic Eden co-founder Zedd stated in a blog, 'Magic Eden's core focus is on users' actual usage rather than just 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 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 more accurately reflect the health of the platform. Additionally, 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 USD, and the recently launched mobile product Magic Eden Wallet has reached 300,000 monthly active addresses. Additionally, Magic Eden is both 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 highest revenue and user share NFT platform 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, will reward users from the Bitcoin, Solana, and EVM ecosystems, to be fully unlocked at TGE and distributed to users through Magic Eden's mobile dApp, and any unclaimed amount will be returned to ME participants as part of the community allocation 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 distributed through reward programs; the remaining 15.2% of the total supply will be used for ecosystem development, including passionate advocates and creators who hope 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, with over 60% of the tokens in this portion locked for at least 18 months after TGE, and then released linearly.
Strategic Participants: 23.6 million tokens, accounting for 23.6% of the total supply, allocated to all strategic participants who provided important guidance during the formulation of the ME Foundation protocol, with this portion locked for at least 12 months after TGE, and then released linearly.
ME Token Economics
According to the token release schedule, 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 Schedule
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 to oversee multi-signature wallets, which can execute both emergency actions and delayed non-emergency actions.
Speculations on the exchange between diamonds and tokens
Although 12.5% of the total supply of the ME token is used for this airdrop, the 'haircut gang' is more concerned about the exchange ratio between the diamonds they claimed and the tokens. The total supply of diamonds is 17 billion, and if calculated based on full circulation, the exchange ratio is 136:1.
According to feedback from administrators in the official Discord channel, the total amount of diamonds claimed by users across the network is still some distance from 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 exchange for about 100 ME tokens. Based on the over-the-counter 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 Claiming
With the announcement of the Magic Eden token economic model, the date for the token airdrop is also approaching. To ensure that the 'haircut gang' can successfully claim the token as soon as possible, Odaily Planet Daily has compiled the following points 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 claiming, bringing you familiar with the process in advance);
On the day of TGE and afterwards, there will be a claiming period during which eligible users can claim and stake ME tokens.
Therefore, similar to the test token claiming process, for the formal token claiming, users will need to download and install the official Magic Eden wallet on their mobile devices.
It is worth mentioning that the previous test token TestME claiming indicated no monetary value; by participating, users could ensure their wallets were correctly linked and prepare for receiving the official ME token claiming, but over 250,000 wallets claimed in the first instance.
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 future Magic Eden score-boosting activities or airdrop rewards. Therefore, even if you miss this airdrop, there is still an opportunity to prepare for the second season of Magic Eden's token airdrop activity, and let's look forward to the opening performance of ME, the token of the currently most active trading platform in the NFT market, Magic Eden.
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 the potential second season of score-boosting 'token grabbing' activities, may attract significant user attention in a short time, it is difficult to inject sustained attention and liquidity into the NFT sector in 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, interest in NFTs has significantly declined, and even within the community, the term NFT has become more of a joke, with user interest nearly frozen. The Blur series, as a 'pioneer in NFT market token issuance', once sparked a wave of discussions about whether excessive financialization would sound the death knell for NFTs, and whether not embracing financialization would be a slow death. Perhaps whether the NFT industry can rise again is not only a question for NFT trading platforms to ponder.
