Original Title: "With Token Issuance Imminent, Can Magic Eden Reignite the NFT Market?"

Original Author: Asher, Odaily Planet Daily

The "Fur Plucking Party" is about to begin feasting on a "Big Portion of Pig's Feet." This morning, Magic Eden Foundation revealed the ME tokenomics, with a total supply of 12.5% allocated for a token airdrop, all of which will be unlocked at TGE. Additionally, Magic Eden co-founder and CEO Jack Lu announced in a post on X that the ME token will go live in a few weeks and will introduce a community-first feature in the future to reward loyal users. Users will be able to earn ME tokens by daily using Magic Eden products.

Influenced by Magic Eden's release of the ME tokenomics, Whales Market pre-market data shows that ME (Magic Eden) is currently trading at 2.5 USDT, with a 24-hour increase of 150% and a trading volume exceeding $200,000. Some large holders 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 at launch.

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 settling back to the level before the release of the ME tokenomics, trading at 0.179 SOL.

Magic Tickets Floor Price Candlestick Chart

Next, Odaily Planet Daily will be the first to bring you insights into the Magic Eden project, the ME tokenomics model, and the preparations leading up to the official token claim.

Project Introduction

Image Source: Official Twitter

Magic Eden is a multi-asset on-chain trading platform that achieves market and user experience unification 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 post: "Magic Eden's core focus is on actual user usage rather than just trading volume, as trading volume can easily be influenced by incentives. We are more focused on analyzing user activity and actual revenue. Blur has performed well in liquidity incentives, which we believe is a clever strategy. However, we always believe that the platform we aim for should not rely solely on liquidity incentives. We are more inclined to focus on user activity and revenue as these metrics more accurately reflect the health of the platform. Additionally, we are also aware that relying too much on trading volume as a measure could be risky."

According to official data, Magic Eden's current cross-chain NFT and token trading volume has reached $600 million, with the latest mobile product, Magic Eden Wallet, having 300,000 monthly active addresses. Furthermore, Magic Eden is not only the number one DEX in the Bitcoin ecosystem, with Rune and Inscription transaction volume share exceeding 80%, but also the top NFT platform in terms of revenue and user share in the NFT ecosystem (revenue share at 60% and user share at 29%).

Magic Eden Data

Tokenomics

According to official information, Magic Eden's native token ME has a total supply of 1 billion tokens, with token distribution scheduled to occur over 4 years, more than half of which will be allocated to the community. The specific distribution is as follows:

· Initial Token Airdrop: 12.5% of the total supply, or 12.5 million tokens, will reward users of the Bitcoin, Solana, and EVM ecosystems. This portion will be fully unlocked at TGE and distributed to users through Magic Eden's mobile dApp, with any unclaimed amount returned as part of community distribution to ME participants for future rewards;

· Community & Ecosystem: 37.7% of the total supply, or 37.7 million tokens, of which 22.5% of the total supply will be used to reward active ME protocol users primarily 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 token supply, this portion will be allocated to project contractors, advisors, and company employees, with over 60% of this portion having their tokens locked for a minimum of 18 months post TGE and then linearly unlocked thereafter;

· Strategic Partners: 23.6 million tokens, accounting for 23.6% of the total token supply, this portion is allocated to all strategic partners who provided key guidance during the ME Foundation protocol formation process, and this portion will have their tokens locked for a minimum of 12 months post TGE and then linearly unlocked.

ME Tokenomics

According to the token release schedule, ME will be fully distributed over 4 years, at which point all ME tokens will be in circulation, with the majority allocated to the community.

ME Token Release Schedule

Additionally, to ensure the community and protocol are protected from security issues, Magic Eden will appoint a Security Council consisting of 5 members responsible for overseeing multi-signature wallets, this council will have the authority to both execute emergency actions and delayed non-emergency actions.

About Diamond and Token Exchange Speculation

While 12.5% of the ME token, which is a significant portion of the total supply, is used for this airdrop, the "ME enthusiasts" are more concerned about the exchange rate between the diamonds they have collected and the tokens. The total supply of diamonds is 17 billion, and if the diamonds are fully in circulation, the exchange rate would be 136:1.

According to feedback from the official Discord channel administrators, the total number of diamonds collected by users across the network currently falls short of the 17 billion diamond target. Therefore, many users speculate that the exchange rate between diamonds and tokens may be close to 100:1. This means an account with 10,000 diamond points can exchange for approximately 100 ME tokens. Based on an over-the-counter trading price of $2.5, the airdrop is valued at around $250.

Response from Diamond Total by Channel Administrators in Official Discord

Preparation Before Token Claim

As the Magic Eden tokenomics model has been announced, the date for the token airdrop is also approaching. In order for the "rug pullers" to successfully claim the token as soon as possible, Odaily Planet Daily has compiled the following key points based on official information:

· Before the TGE, users can use the eligibility checker to see which wallets qualify, and users can also connect their wallets at this time, similar to the TestME application process (for reference, the TestME application process can be found in this article: Magic Eden is about to open TestME airdrop registration, taking you through the process in advance);

· On the TGE day and beyond, there will be a claiming period where eligible users can claim and stake ME tokens;

Therefore, similar to the test token claim process, during the official token claim, users will need to download and install the Magic Eden official wallet on their mobile phones.

It is worth mentioning that the TestME token claimed by Magic Eden earlier had no monetary value and through participation, users could ensure that their wallets were correctly linked and prepared to receive the official ME token claim, but there were over 250,000 wallets claimed in the first instance.

Furthermore, 37.7% of the ME tokenomics model's allocation is reserved for the community, and this portion of the tokens is likely to be used for future Magic Eden point farming activities or airdrop rewards. Therefore, even if you miss this airdrop, everyone still has the opportunity to prepare in advance for the token airdrop event of Magic Eden Season 2, and let us look forward to the listing performance of ME, the token of Magic Eden, the most active NFT trading platform in the current NFT market.

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). While unveiling its tokenomics model at this time and planning to release the token in the next few weeks, as well as the potential second-season points farming "rug token" activity that is likely to attract a lot of user attention in a short time, it is difficult to sustainably inject attention and liquidity into the NFT sector amidst the current "rush to meme coins" environment.

If Magic Eden wants to reignite the NFT market through token issuance and ongoing 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 mockery, with user interest cooling off. As Blur, the "NFT market token issuance pioneer," once sparked a discussion, whether the over-financialization sounded the death knell of NFTs, and whether not embracing financialization is also a slow death. Perhaps, whether the NFT industry can rise again is not just a question for NFT trading platforms to ponder.

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