Manta Network represents a groundbreaking evolution in the blockchain space, focusing on privacy and scalability. It's a modular ecosystem designed to support the growing demands of decentralized applications (dApps).
This network is uniquely positioned, leveraging zero-knowledge (ZK) proofs, offering two main components: Manta Pacific, a modular Layer 2 (L2) ecosystem on Ethereum, and Manta Atlantic, a swift ZK Layer 1 (L1) chain on Polkadot. Manta Network stands out for its scalable and private solutions, ideally suited for next-gen dApps.
Today we will focus on the Manta tokenomics and how its tokenomics design can be understood and stress-tested.
Manta Tokenomics
At the heart of Manta Network’s operation is the $MANTA token. It serves a critical role in transaction facilitation across the network. This utility token is not just a medium of exchange but also integral to the functioning of the network's ecosystems.
Token demand: Efficient Fee Distribution and Ecosystem Support
A key feature of $MANTA tokenomics is the intelligent allocation of transaction fees. These fees are divided among:
Operators (collators): to incentivize optimal network performance and reliability.
Ecosystem: to reinvest in the network's growth, fostering innovation and development.
Network Treasury: for financial stability and long-term sustainability.
Incentives for Participation and Growth
The MANTA token is designed to stimulate both immediate engagement and sustained involvement in the network:
Short-Term Incentives: Through their two airdrops, Manta Network aims to reward the most active community members.
Long-Term Commitment: The network introduces an annual emission of 2% of the total supply, dedicated to reinforcing network security. This is distributed to stakers who delegate their tokens to collators. Additionally, there's a meticulously planned vesting schedule tailored to different stakeholders, aligning their long-term interests with the network's prosperity.
Furthermore, holding the MANTA token confers governance rights, granting stakeholders a say in key network decisions.
Overall, the MANTA token appears to be equipped with the right mechanisms to not only stimulate the network's business flywheel but also to benefit the broader ecosystem, all while methodically accruing value.
Manta Token Allocation
Manta Network introduces $MANTA with a detailed token allocation and vesting schedule, underpinning its sustainable and growth-oriented tokenomics. The total supply of $MANTA at Genesis is set at 1 billion tokens, complemented by an annual minting rate of 2%. At the Token Generation Event (TGE), the circulating supply will commence at 251 million tokens. The distribution of this supply is carefully segmented as follows:
Airdrop: accounting for 5.60% of the total supply, with complete distribution occurring at TGE.
New Paradigm (Airdrop 2): comprises 6.5% of the total, with 77% released at TGE and the remainder three months later.
Binance Launchpool: 3% of the total supply is allocated here, available in full at TGE.
Public Sale: represents 8%, with half (50%) released at TGE and the remaining portion following an 18-month vesting period.
Private Round: 12.94% of the supply, subject to a 12-month cliff and linear vesting over 36 months.
Strategic Investors: 6.17% allocated with the same vesting structure as the Private Round.
Institutional Investors: 5% of the total supply, also following the 12-month cliff and 36-month linear vesting.
Ecosystem / Community: constituting 21.19%, with 23.5% released at TGE and the balance vested linearly over 48 months.
Foundation Treasury: 13.50% of the supply, linearly vested over a 72-month period.
Team: accounting for 10% of the total, subject to an 18-month cliff, followed by a 48-month linear vesting schedule.
Advisors: comprising 8.10% of the total, with 31% available at TGE and the rest vested linearly over 30 months.
The controlled emissions from the annual 2% minting will predominantly serve as rewards for staking and validator incentives. This strategy not only bolsters network security but also acts as a compelling incentive for token holders, reinforcing their commitment to the network's long-term success.
How to Test Manta Tokenomics Design
Even with a well-structured design, it's crucial to validate the underlying numbers in Manta tokenomics. A key aspect is to analyze the token buying and selling pressures.
Token Selling Pressure
Several factors contribute to the selling pressure:
Airdrops: representing 11.6% of the token supply, allocations historically show limited success in token retention. We anticipate significant sales from this segment. A recent analysis on allocation impacts in similar economies is available at https://www.cenit.finance/blog/cosmos-airdrop-potential-impact-on-the-atom-token
Investors and Team Holdings: they control up to 42% of the total supply. Compared to other projects, this is released over a healthier time frame, suggesting a more measured selling pressure.
2% Annual Mint Rate: this rate contributes to staking rewards, and it's likely that a portion of these tokens will be sold in the market.
Token Buying Pressure
Conversely, buying pressure arises from:
Stakers: assuming an anticipated APY of 10%, a 2% annual mint rate would necessitate purchasing 20% of the total supply for staking purposes.
Fees: 72% of fees go to the ecosystem, 18% to the treasury, and 10% to operators. It's reasonable to expect that operators will liquidate their tokens quickly, in order to cover their investments into hardware as well as operative costs. The net buying pressure from fees will depend on the spending policies of the ecosystem and treasury. If they expend all their earnings, the net impact on token value could be negligible.
Calculating the exact numbers: Cenit simulator
To obtain precise insights from the Manta tokenomics, the Cenit simulation tool serves as an invaluable resource. This comprehensive platform simplifies dynamic calculations, ensuring an efficient and straightforward process.
The Cenit simulator enables users to convert various hypotheses and tokenomics design parameters into tangible buying and selling pressures. These pressures directly influence the organic token price within a specific economy, simultaneously updating conditions across the ecosystem.
Utilizing the tool is straightforward – one only needs to input relevant project information. This includes allocation and vesting schedules, the utility of tokens for different value propositions, and the operational mechanics of incentives.
Create your own in-depth tokenomics simulations and get valuable insights in less than 15 minutes with the Cenit Simulator tool
In summary, in order to effectively test a tokenomics design such as the MANTA token we need a comprehensive approach:
Understanding the Value Proposition: it's essential to grasp the core objectives and benefits offered by Manta Network. This understanding forms the foundation of any tokenomics analysis.
Examining Token Utility: assess the $MANTA token's roles, both in accruing value for the network and incentivizing growth. This includes its usage in transactions, governance, and staking.
Quantitative Analysis: use tools like the Cenit simulator to convert theoretical aspects of the tokenomics into quantifiable data. This step is crucial for predicting market behavior and ensuring the sustainability of the token.
Armed with this approach, one can effectively navigate and validate the complex dynamics of Manta Network’s tokenomics and any other project, ensuring a robust and forward-thinking investment strategy.
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