Mantle Network, an Ethereum layer-2 scaling solution, is gearing up for its mainnet launch. Last month, Mantle merged with BitDAO, the team behind the modular rollup, to create the Mantle ecosystem. Unlike existing Ethereum layer-2s such as optimistic or zero-knowledge rollups, Mantle is designed to be completely modular, outsourcing its data availability layer rather than using the Ethereum mainnet. This increases efficiency but brings challenges in terms of security and trustlessness.
The merger between Mantle and BitDAO aims to streamline different aspects of the ecosystem under one unified brand. BitDAO’s Treasury, currently valued at nearly $3.7 billion with 78% held in its own token (BIT), will be converted to MNT, the new Mantle token, prior to the mainnet launch in Q3. The new MNT token will be used for paying gas fees, contributing to ecosystem building through its grants program, staking, and voting on governance proposals.
BitDAO’s head of ecosystem, Arjun Kalsy, says staking will be a large focus for the ecosystem moving forward, as it represents a potential source of revenue from the 13% treasury allocation to ETH. The Mantle testnet has been live since January, and the mainnet is estimated to launch sometime in July. Kalsy claims over 11,000 weekly active users on the testnet and around 92 deployed applications. He adds that some of the deployed applications are not fully operational; however, testnets help developers improve functionality and identify potential bugs.
There are concerns regarding security and trustlessness due to the absence of data storage on the Ethereum mainnet. Although this increases efficiency, relying on off-chain data storage may present challenges. Nevertheless, the main objective of the Mantle ecosystem is to continually build utility and value through ecosystem developments, brand consolidation, and a strong focus on staking.
Whether or not the merger and forthcoming mainnet launch will result in an airdrop remains uncertain. However, Kalsy mentions the possibility of incentivizing early users who actively make transactions on the testnet. The token conversion process will not only create a more unified ecosystem but also ensure that existing token holders retain their governance rights. This reflects the community’s commitment to supporting Mantle’s growth and evolution as a leading Ethereum scaling solution.
Source: Blockworks
