The New Mantle Token — AMA Recap
05/28/2311 min read
Another day, another Mantle rebranding AMA! We got some community questions answered by Mantle contributors Igneus Terrenus, Jordi Alexander, and afkbyte in last week’s session. With the discussion forum for the details surrounding $BIT’s transition to Mantle’s new $MNT token underway (check out our new forum here), many community members were seeking greater clarity around the proposal details. Remember that the actual conversion implementation is subject to change as the team explores the best way to execute it.
Thanks to everyone who contributed their questions across all of our channels! If you are not involved, we have various communities across Discord, Reddit, Telegram, and Twitter, so follow and stay updated with all changes to Mantle during these busy times!
*Some sentences have been edited for clarity and brevity.
Summary of the Rebrand Proposal (BIP-21)
BitDAO is planning to unify its brand and token under one brand and one token for long-term token holder prosperity and increased success for its core product, Mantle Network. This includes rebranding all product and governance components under Mantle (mantle.xyz) and authorizing a token conversion plan from $BIT to $MNT, with token conversion rules equally applicable to all token holders. Simplified tokenomics are proposed for a fresh start for the Mantle Network mainnet, which includes accelerating all BIP-20 contributions and BitDAO launch vesting schedules (Bybit contributions have already been sent to the Mantle Treasury). This plan will not result in material changes to existing governance processes, resource management, or initiatives. All Mantle-branded product lines, governance components, and initiatives will be under the umbrella website https://www.mantle.xyz/.
*Please note that there have been updates to the original proposal on the Mantle forum since the AMA — the new proposed conversion rate, as suggested by many of the community, is now 1 $BIT : 1 $MNT. As such, all mentions of the previous conversion rate have been omitted from this recap. The new proposed conversion rate reflects the wishes of the community, which the core team has listened to and considered with careful deliberation. This has been a testament to the team’s commitment to the community, from whence it derives its mandate, and set a great example of how to find consensus and the greatest common denominator through temperature checks and two-way, back-and-forth dialogue.
$BIT to $MNT Conversion
J: We thought about the right number of tokens each token holder should have, how many tokens should be in the treasury and more, because it’s important to us that token holders from this community are taken care of. Of course, what this final supply will be will be decided with the help of the community.
Mint Function & $MNT Supply
J: Right now the Mantle Treasury is extremely well capitalized with various assets beyond Mantle tokens, including ETH, USDC, USDT, and more (this can be viewed at the bottom of our website). This is more than enough dry powder to service any expenses that will be coming up in the near future.
AFK: Minting new $MNT tokens is not on the roadmap, and the starting inflation rate for the token will be set at 0%. In order to increase this, there would have to be a series of governance votes to implement it.
What is Bybit’s Token Situation?
J & I: Bybit originally had a large balance of $BIT tokens slowly vested over time. The changes in the original rebranding proposal outlined an “adjustment” to Bybit’s vesting schedule of the current tokens.
Bybit’s tokens have all been immediately vested and transferred to the Mantle Treasury. his is a necessary move because the focus is that Mantle is an Ethereum-aligned project seeking to develop the blockchain space as a whole, and clearly outlining the role of Bybit with respect to Mantle Ecosystem helps confirm the product-centric vision that Mantle is so focused on.
Why is the Token Conversion Necessary?
J & AFK: If you look at L2s and the tokenomics of an L2, they differ from that of an investment DAO. The conversion from a $BIT token to the new $MNT token is necessary because the $MNT token will be used for gas payments on the Mantle layer-2 (L2) network. This requires certain functions that were not present in the $BIT token, as it was created with the sole purpose of being a governance token.
The $MNT token will have the functions such as mint and burn, and can be upgraded — everything that is essential for an L2 token.
What is the Process for $MNT to be Listed on Exchanges?
J: Currently, $BIT is not listed by many exchanges, in part due to a majority of the supply being held by Bybit. Many exchanges do not want to list the tokens of other exchanges, which has made it difficult for $BIT to be widely available.
This conversion to $MNT, and the focus on the ecosystem and products within Mantle, will make it significantly easier for the token to be listed on large exchanges. There’s a positive outlook getting $MNT listed on large exchanges, and that will be a focus of the team in the near future.
After the conversion, expect exchanges that are already listing $BIT to list $MNT, and other exchanges could be expected to support once the Mantle Network Mainnet launch is announced.
How Will the Token Be on Both Ethereum L1 and Mantle’s L2?
J & AFK: Because the governance (and the entirety of its $3.9B treasury) for Mantle currently lives on Ethereum mainnet, the token conversion will take place on L1 as well. Cross-chain governance currently poses too many problems to be utilized. Through the token conversion process, the team will be as considerate as possible to gas fees and bridging fees incurred by users and attempt to make sure that people are not paying high gas fees.
In the future, when bridging from L1 to L2, the $MNT tokens will utilize a lock and mint model, which will ensure that token balances are always updated and on point between Ethereum mainnet and the L2.
Should Small $BIT Holders Be Worried About the Conversion?
J: These conversions happen all the time, and $BIT currently does not have much exposure to the broader world of DeFi. There is one main Uniswap pool, and tokens there can be converted. Bybit will be offering gasless transactions for small balances of $BIT.
When Will This Be Carried Out?
J: The token conversion from $BIT to $MNT is likely to be executed sometime in June. The token conversion will happen before the Mantle Network Mainnet launch to ensure that the $MNT token can be used as the gas token (and more) for the network.
What Will the Token Be Used for Beyond Gas?
J: The team has taken a careful look at the various L2 and other network tokens that exist today. The goal is to create a robust set of ecosystem rewards and incentives that help promote the sustainability of growth of the network.
Airdrops and incentive programs work well for this, and TVL statistics show that they help maintain activity on the networks. But because $MNT token holders will be governing the funds, the team is taking steps to prevent exploitation by sybil attackers. The exact details of the incentives on Mantle will be discussed at a future time, but the goal will be to make sure the products and ecosystem benefits from the use of funds.
Continue the Discussion on Mantle
As the discussion period wraps up and the token conversion proposal shifts to a snapshot vote, please continue to voice your opinion and leave feedback on the matter. We appreciate the active community members who are sharing their concerns and giving the team a chance to address them.
At the end of the day, the conversion process and details will all be focused on making the process as simple and efficient as possible for existing $BIT holders.