The esteemed members of the Mantle community have greenlit the idea of establishing an economics committee. The sole intention behind this move is to administrate the layer 2 blockchain’s massive $4.2 billion treasury effectively. It’s noteworthy that the brunt of this wealth lies in the form of MNT which is the governance token for Mantle. The treasury also possesses an impressive amount of approximately $300 million in stablecoins of USDC and USDT.
The momentum behind constituting the governing body has surged several weeks after the launch of Mantle’s mainnet technology stack for amplifying Ethereum. Today, the network parades a total value locked (TVL) of $40.73 million. However, this figure is ostensibly meager compared to its rivals, the L2s Arbitrum and Optimism, with a respective TVL of $1.9 billion and $874 million.
The magnitude within the governance proposal doesn’t end there, it also sanctions the inception of Mantle LSD and an ether (ETH) staking strategy formed in partnership with Lido. The exotic sounding Mantle LSD is a liquid staking protocol which empowers users to deposit ETH and acquire mntETH – a fluid staking token in return. Further, Matale’s staking stratagem with Lido assimilates the allocation of 40,000 ETH from the Mantle treasury to stETH to quote “bootstrap DEX liquidity and integrations across Mantle,” as per ‘Seraphim’, a prominent Lido contributor, in a forum discussion. The present haul of ETH within Mantle’s treasury surpasses more than 264,000, going by the data on its site.
Whilst the formation of the economics committee clearly expresses the inherent desire of the community for accountability and democracy in decision-making, it brings forward the inherent possible issues, due to human nature, that sometimes accompany increased complexity and convoluted bureaucracy. And with more than half of Mandel’s treasury held in its own governance token, it raises questions about how solid and diversified the financial base really is, considering the notoriously volatile nature of cryptocurrencies. Not to mention the plethora of potential risks and uncertainties related to yield farming and liquidity allocation in decentralized finance platforms. Despite its smaller stature compared to the competitor L2s, Mantle is possibly taking up challenges intriguingly and with an innovative approach. It will be intriguing to behold the evolution and implementing decisions of the newly formed Mantle Economics Committee in the forthcoming period.
Source: Coindesk
