What are the technical advantages of Mantle’s transformation from DAO to Layer2?

Written by: VIKTOR DEFI, Foxi

Translation: Deep Tide TechFlow

Mantle Network is a Layer 2 blockchain incubated by the BitDAO team. Like Optimism and Arbitrum, it also utilizes Optimistic Rollup technology for construction. Through modularity, its own data availability layer (DA), decentralized sequencer, and other advantages, it enhances network throughput and scalability.

The benefit of this Layer 2 solution is that it can share network security with the Ethereum mainnet, reduce transaction costs through modular “compressed blocks,” and increase the overall throughput of on-chain transactions.

What sets Mantle apart from other L2 solutions:

1. Modular Data Availability: By using EigenLayer, Mantle achieves higher transaction throughput beyond traditional L2. Accessible data availability also means that Mantle can increase throughput without compromising security or reducing the burden on validation nodes, thereby reducing processing requirements and promoting decentralization.

2. Multi-Party Computation (MPC): Mantle uses MPC to minimize the trust risk of L2 execution results. By using Threshold Signature Scheme (TSS) technology, dedicated nodes contribute to multi-party signatures to improve the correctness of off-chain transactions. This shortens the withdrawal challenge period.

3. Decentralized Sequencer: Mantle decentralizes its sequencer to provide secure and trustless block production. By rotating a permissionless set of sequencers, Mantle reduces the possibility of single point failures or censorship on the network.

Relationship with BitDAO, Tokens, and its Treasury

BitDAO has been renamed Mantle and plans to build an ecosystem on its Layer 2 solution. The $BIT tokens of BitDAO have been converted to $MNT tokens at a 1:1 ratio.

Regarding its updated treasury and token economic model, here are some key points:

  • Mantle is incubated by BitDAO, which has a $2 billion treasury, ranking among the top three DEFI treasuries.

  • The $MNT token will be used for governance, node staking, and potentially as collateral in the Mantle ecosystem.
  • During the token conversion process, 3 billion $BIT tokens were burned, resulting in a 30% reduction in total token supply. Currently, only 51% of $MNT tokens are in circulation.
  • Mantle proposes to establish a $200 million ecosystem fund within 3 years for the development of over 40 projects. The initial $100 million will come from BitDAO’s treasury.
  • Mantle proposes to allocate 200,000 ETH for staking and ecosystem development. The Mantle Economic Committee will decide how to distribute the funds from the treasury.

$MNT Token Distribution?

There is currently no formal discussion regarding the macro goals or restrictions of $MNT token distribution. The core contributor team has only provided estimates on potential priorities.

In general, the MIP-22 proposal discusses key aspects of the $MNT token economic model, such as token design, conversion ratios, and distribution priorities. The actual macro goals and restrictions may be determined through further governance discussions and proposals. The current focus appears to be on incentivizing users, partners, and core contributors through the distribution of $MNT tokens.

Conclusion

Mantle aims to improve transaction throughput and reduce costs by adopting various methods such as OptimisticRollup, EigenLayer modular data availability, multi-party computation, and more decentralized sequencers. However, the effectiveness of these solutions in practice remains to be observed. In terms of the ecosystem, most dApps on Mantle currently focus on gaming, with fewer DeFi or infrastructure products. Major Ethereum protocols have not yet integrated with Mantle.

The key to Mantle’s success will lie in whether it can fulfill its technical promises and leverage the growing demand for LSDFi solutions.

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