Mantle Community Evaluate 2025: Prime Ethereum Layer 2 Contender

The Layer 2 ecosystem of Ethereum is huge and fiercely aggressive. Latest updates to the Ethereum mainnet, equivalent to account abstraction and protodanksharding, have considerably improved its effectivity. These developments have massively elevated the throughput capabilities of Layer 2 options, making a fertile floor for innovation and competitors.

Layer 2 chains are additionally evolving quickly. They leverage cutting-edge applied sciences equivalent to zero-knowledge (zk) proofs, superior information availability methods, and improved {hardware}, together with extra environment friendly sequencers and provers. These improvements are driving substantial positive aspects in effectivity and scalability, additional intensifying the aggressive panorama of Layer 2 options.

In a earlier Coin Bureau article concerning the high new cryptocurrencies, we highlighted a promising Layer 2 challenge known as the Mantle Community. Since then, Mantle has made spectacular strides, climbing to the twentieth spot in whole worth locked (TVL), surpassing legacy networks like Close to, Algorand, Cardano and StarkNet, based on DefiLlama.

This Mantle Community overview goals to supply a complete overview, exploring the varied parts of its ecosystem, together with its governance framework, liquid staking tokens and the second-largest treasury in Web3. As a novel and modular Layer 2 community, Mantle gives a novel method to addressing the scalability trilemma. By analyzing these facets, we purpose to supply a radical understanding of what units Mantle aside within the extremely aggressive Layer 2 panorama.

Contents

What’s the Mantle Community?

The Mantle Community originated from BitDAO, a distinguished decentralized autonomous group (DAO) established in 2021. BitDAO shortly grew to become a major participant within the crypto house, due to substantial backing from high-profile buyers equivalent to Peter Thiel and enterprise capital agency Pantera Capital. Its mission was to assist and put money into numerous decentralized tasks and protocols.

In June 2022, BitDAO proposed the incubation of Mantle, marking the start of its journey as a specialised Layer 2 scaling resolution for Ethereum. This proposal set the stage for Mantle to leverage BitDAO's huge assets and strategic imaginative and prescient. By January 2023, Mantle launched its first testnet, a major milestone in its growth.

The merger between BitDAO and Mantle was finalized in Might 2023, a strategic transfer aimed toward consolidating efforts and focusing solely on Layer 2 scaling options. This merger was authorised via BitDAO's governance proposals, particularly BIP-21 and MIP-22, which acquired overwhelming assist from the neighborhood. The combination allowed Mantle to inherit BitDAO's sizable treasury, offering substantial monetary backing to gas its development and growth.

As of June 2024, Mantle's treasury is valued at roughly $3.01 billion, comprising a mixture of MNT, mETH, wETH, and USDe tokens. This sturdy monetary basis positions Mantle as a well-resourced community able to driving important innovation within the Layer 2 house.

A key milestone in Mantle's growth was the Tectonic Improve (V2), accomplished in March 2024. This improve launched a number of essential enhancements, together with mounted block schedules and eradicating Threshold Signature Scheme (TSS) nodes. Moreover, the improve marked a pivotal change in Mantle's tokenomics. Submit-upgrade, MNT grew to become the native token of the Mantle Community, changing its earlier standing as a bridged model of the Ethereum ERC-20 token. This transition enhanced the community's effectivity and aligned the token's performance with Mantle's long-term imaginative and prescient.

How Mantle Community Works

The Mantle Community started its journey by creating Mantle V1 Alpha in late 2022, formally launching in July 2023. This preliminary model utilized Optimism's Optimistic Digital Machine (OVM) codebase. The OVM is a key element of Optimism's Layer 2 resolution, designed to execute transactions sooner and cheaper by assuming transactions are legitimate and solely verifying them if fraud is suspected.

Nevertheless, the panorama of Layer 2 options noticed a major shift in October 2022 with the introduction of Optimism's OP Stack. The OP Stack is a modular, open-source, and forkable know-how stack that allows the creation of latest Layer 2 chains, referred to as OP Chains. These chains are interoperable, offering a versatile and scalable framework for builders.

The OP Stack introduced a number of benefits over the OVM. Notably, it included assist for Ethereum's EIP-1559, which streamlined gasoline administration by introducing a base price that adjusts dynamically based mostly on community demand, thus eliminating the uncertainty of the earlier auction-based system.

In March 2024, Mantle launched its V2 Tectonic improve, transitioning from the OVM to Optimism Bedrock, which is constructed on the OP Stack. This improve marked Mantle's transformation into an OP Stack Layer 2 chain, incorporating essential information administration adjustments and considerably enhancing its efficiency and scalability.

Mantle V2 Tectonic additionally launched a brand new information availability resolution, Mantle DA, powered by EigenLayer's EigenDA. This resolution improves information availability and safety, making certain the community can effectively deal with larger transaction volumes. Whereas Mantle DA at present enhances the community's capabilities, there are plans to completely swap to EigenDA at an undisclosed future date.

The OP Stack

Optimism Bedrock is a set of technological parts that may create new interoperable layer 2 chains known as OP Chains. Bedrock consists of the OP Stack, the tech stack Mantle leverages to construct its infrastructure. The OP Stack consists of the next parts:

op-geth: The op-geth element implements the Layer 2 execution layer. It’s based mostly on the favored Ethereum shopper, Geth (Go Ethereum), however has been modified minimally to make sure a safe, Ethereum-equivalent atmosphere for purposes operating on Layer 2. These minimal adjustments make sure that the op-geth stays carefully aligned with the Ethereum mainnet, offering a constant and safe execution atmosphere for decentralized purposes (Dapps).
op-batcher: The op-batcher service is essential in submitting Layer 2 sequencer information to Layer 1. Its major perform is to make this information out there for verifiers. To optimize prices, the op-batcher solely posts the minimal information essential to reconstruct Layer 2 blocks on Layer 1. This minimalistic method reduces the expense of writing information to the Ethereum mainnet whereas making certain ample data is out there to confirm the integrity and sequence of transactions processed on Layer 2.
op-proposer: The op-proposer service submits output roots to Layer 1. Output roots are important for enabling the trustless execution of Layer 2-to-Layer 1 messaging. By submitting these roots, the op-proposer creates a view of the Layer 2 state from the attitude of Layer 1. This course of ensures that Layer 1 has a verifiable and correct illustration of the Layer 2 state, which is essential for sustaining the integrity and trustlessness of cross-layer interactions.
Sequencer Nodes (op-geth + op-node): Sequencer nodes mix op-geth and op-node, working collectively to handle the ordering and execution of transactions on Layer 2. The op-geth executes transactions, sustaining the Ethereum-equivalent atmosphere, whereas the op-node manages the network-specific functionalities, equivalent to transaction ordering and block manufacturing. Sequencer nodes play a pivotal position in making certain the effectivity and reliability of the Layer 2 chain, as they’re accountable for processing and sequencing transactions earlier than they’re submitted to Layer 1 by way of the op-batcher and op-proposer companies.

These parts collectively allow the Mantle Community and different OP Stack-based Layer 2 options to supply scalable, safe, and environment friendly execution environments that align carefully with Ethereum's mainnet, making certain compatibility and ease of use for builders and customers alike.

Mantle DA

The Mantle Community differentiates from different layer 2s in the way it handles the storage of its blockchain information. Whereas different networks retailer their block information on the Ethereum community, incurring important storage prices attributable to scarce storage capability in Ethereum, Mantle leverages EigenLayer for Information Availability:

MantleDA, consisting of permissioned EigenDA nodes staking MNT shops Mantle block information. This information will likely be essential for establishing fault proofs in case disputes come up after the optimistic acceptance of transaction information.
Mantle DA employs an erasure charge system, which shops block information in a number of fragments throughout a number of nodes. Validators reconstruct information by accessing quite a few fragments as required. Fragmentation protects information integrity.

In abstract, utilizing Mantle DA reduces the load implied in Ethereum, which implies layer 2 can pack extra transactions into every block, drastically enhancing throughput and decreasing the gasoline value of Mantle transactions. Nevertheless, third-party information availability makes Mantle theoretically much less safe than full Ethereum rollups, because the Mantle Community is determined by EigenLayer as an alternative of Ethereum.

Mantle Transaction Life Cycle

A Mantle Transaction Life Cycle interacts with a number of modular layers that carry out particular duties. A Mantle transaction includes interplay between the Mantle execution layer, a modular information availability layer, and the Ethereum mainnet. Listed below are the three foremost levels of the transaction life cycle:

Initiating the Transaction

Customers provoke transactions on the Mantle Community by sending signed transactions via out there RPC nodes. However, decentralized purposes (Dapps) leverage the built-in Mantle SDK, permitting them to attach seamlessly to the community. This integration ensures that each particular person customers and Dapps can work together with the Mantle Community effectively.

Dealing with the Transaction

As soon as a transaction is initiated, the sequencer receives the transaction information from customers and Dapps. The sequencer's major accountability is to package deal these transactions into blocks. Earlier than establishing a block, the sequencer should guarantee the next:

Transaction Validity: The transactions have to be essentially legitimate, adhering to the community's guidelines and protocols.
Payment Cost: The transactions should have paid the mandatory charges.
Customary Execution Process: The transactions should observe the usual process for execution.

The sequencer performs this state verification course of utilizing the Ethereum Digital Machine (EVM) software program op-geth. After calculating the brand new state, the op-proposer shares the brand new state's root with the Mantle Layer 1 (L1) good contract on Ethereum. This course of ensures that the state transitions are precisely recorded and might be verified on Ethereum's mainnet.

After creating a number of pending blocks, the op-batcher encodes and compresses these blocks into batches. These batches comprise important transaction information required for transaction settlement. Sometimes, a rollup would ship these batches to Ethereum for storage, spreading the storage prices throughout particular person transactions. These batches assist clear up disputes by way of fault proofs or create zk validity proofs, making certain information availability.

Storing Transactions

The Mantle Community outsources information availability ensures by storing batched transaction information with a third-party information availability (DA) supplier known as Mantle DA, powered by EigenLayer. The op-batcher submits the compressed transaction information to Mantle DA.

As an optimistic rollup, the Mantle Community doesn’t want this information instantly. In case of disputes, verifiers can fetch the mandatory transaction information from Mantle DA to create fault proofs and resolve discrepancies. This method ensures that the Mantle Community stays environment friendly and scalable whereas sustaining the integrity and safety of transaction information.

This transaction life cycle highlights Mantle's intricate processes to make sure environment friendly, safe, and scalable transaction dealing with on its Layer 2 community.

MNT Token

The Mantle Community token, formally referred to as MNT, is the native token of the Mantle ecosystem. Within the Mantle V1 Alpha model, MNT functioned as an ERC20 token good contract within the Ethereum community, whereas all of the MNT tokens in layer 2 have been bridged variations of the ERC20 tokens.

The Mantle V2 Tectonic improve modified MNT token standing, MNT migrated to layer 2 and have become the canonical token of the Mantle Community and never the bridged model of an Ethereum token. The MNT token has the next utilities:

The Mantle crypto serves twin roles as a governance and utility token throughout the Mantle Ecosystem, offering holders voting rights and sensible performance.
When it comes to governance, every Mantle crypto carries an equal vote weight, enabling token holders to take part in DAO voting and affect the decision-making course of actively. This ensures a decentralized and community-driven method to shaping the way forward for the Mantle Ecosystem.
As a utility token, MNT is utilized for gasoline charges on Mantle Community. Moreover, MNT tokens can function collateral belongings for Mantle Community nodes, additional incentivizing participation and contributing to the safety and stability of the community.

MNT Distribution

The MNT token is exclusive in that its holders aren’t topic to any vesting or token lock interval. It has a most provide of 6.2 billion tokens. In August 2024, the circulating provide of MNT sits at 3.2 billion tokens. The MNT token is distributed between the circulating provide and the Mantle treasury, which holds about 3 billion (~48%) MNT tokens.

The distribution of MNT tokens from the Mantle Treasury follows the Mantle Governance course of, adhering to strict procedures exemplified by the BIP-19 Mantle Community Finances. As of June 2023, there aren’t any formal macro targets or restrictions for MNT distribution. Nevertheless, the first classes for distribution embrace:

Person Incentives: Methods to drive person adoption, equivalent to multi-season achievements and quests, purpose to extend day by day energetic customers, whole transactions, protocol charges, and whole worth locked (TVL).
Know-how Associate Incentives: Incentives for Dapps, infrastructure service suppliers, and core protocol know-how companions to foster collaborations and improve the ecosystem.
Core Contributor Workforce and Advisors: Useful resource allocation to the workforce and advisors via a clear finances proposal course of.
Different Alternatives: Potential acquisitions, token swaps, treasury gross sales, and different offers evaluated on a case-by-case foundation for his or her advantages to the Mantle Ecosystem.

The place To Purchase MNT?

MNT might be purchased by way of Bybit, Kraken, Gate.io and KuCoin, amongst different centralized exchanges. Additionally, try our high picks for one of the best crypto exchanges.

Amongst decentralized exchanges, your choices embrace Uniswap and PankcakeSwap. We even have an article highlighting one of the best decentralized exchanges.

Mantle Liquid Staking Protocol

Liquid staking is a know-how the place customers mint a liquid illustration of their staked ETH, which might take part in DeFi whereas additionally incomes staking rewards. The liquid staking business is without doubt one of the fastest-growing sectors in DeFi, attracting billions in worth and producing important capital that may gas different actions in Web3.

Mantle Staked Ether

The Mantle Liquid Staking Protocol (LSP) integrates native liquid staking into the community. Customers can stake ETH on Mantle LSP, which supplies them mETH in return, representing their deposit and incomes rewards over time. mETH is a value-accumulating token, that means it rewards holders by rising in worth with time. As of August 2024, the worth of 1 mETH is 1.0408 ETH. In August 2024, mETH market cap is at about $1.2 billion, which provides as much as roughly 470,000 ETH staked in Mantle LSP.

mETH is certainly accessible on numerous DeFi platforms. Customers can leverage mETH in liquidity swimming pools and yield farming throughout many decentralized purposes.

$cMETH Restaking Token and $COOK

There are numerous purposes of LSTs in decentralized finance. One attention-grabbing utility includes reusing staked ETH to safe new networks by assuming extra slashing situations known as restaking.

The Mantle governance handed the MIP-30 improve and launched the $cMETH liquid staking token. This token permits mETH holders to restake their tokens throughout the Mantle ecosystem. With cMETH, Mantle hopes to convey excessive composability in its ecosystem and cut back liquidity fragmentation. COOK is the governance token for cMETH.

The Mantle Ecosystem

The Mantle Community has quickly advanced right into a vibrant and numerous ecosystem, encompassing numerous decentralized purposes (DApps) throughout a number of classes. Important milestones, numerous DApp classes, and spectacular efficiency metrics mark its development.

Key Traits and Metrics

The Mantle ecosystem witnessed two main durations of elevated buying and selling and adoption, pushed by strategic initiatives and token rollouts.
First Interval (Late 2023 – January 2024):
- Launch of mETH and USDY in November 2023.
- mETH's market yield doubled to 7.2% in December 2023, with the cap elevated from 250,000 mETH to 333,333 mETH in January 2024.
- The mETH and mUSD Vacation Raffle in December 2023 attracted important participation, boosting day by day energetic transactions to a peak of two.2 million and 96,700 day by day energetic addresses.
Second Interval (Might 2024 – June 2024):
- Introduction of restaking initiatives equivalent to mETH Eigen Factors and the launch of cmETH and COOK.
- Mantle dedicated $5 million to SocialFi and gaming innovation, leading to new dApps like Catizen, xMetaCene, and BladeGamesHQ.
- In Might 2024, MNT on-chain holders elevated by 9%, with DEX buying and selling quantity reaching $93.8 million and day by day transactions hitting 790,900. Energetic addresses peaked at 194,200, and TVL reached its highest worth at $437.4 million on June 6, 2024.

Decentralized Purposes (DApps)

Mantle's ecosystem options a variety of dApps throughout numerous classes, together with DeFi, NFTs, and gaming.

DeFi Purposes:

Agni Finance: An automatic market maker-based decentralized alternate and launchpad. It leads Mantle's protocols with a TVL of $117.3 million.
INIT Capital: A platform democratizing entry to liquidity, with a TVL of $146.9 million and important involvement in Mantle's Catalyzed Capital Pool.
Service provider Moe: The biggest DEX on Mantle, with a TVL of $78.4 million, a part of the Dealer Joe ecosystem, and that includes a Liquidity E-book protocol.
Agni Finance: An AMM-based DEX specializing in spot buying and selling and concentrated liquidity, with a TVL of $55 million and notable buying and selling pairs like mETH/wETH.
Puff's Penthouse: A gamified staking platform the place customers bond mETH or USDT into PUFF tokens, boasting a TVL of $25.66 million.

NFT Initiatives:

Mintle: A secondary NFT market developed in partnership with Rarible, internet hosting the Residents of Mantle assortment and facilitating cost-effective NFT buying and selling.
Co-Museum: An NFT neighborhood platform for communally owned digital artwork, taking part in occasions like Artwork Basel Miami and Singapore's Proof of Idea.

Gaming Initiatives:

Catizen: A Web3 gaming community created by Pluto Studio, with 2.3 million addresses and a couple of.6 million transactions inside a month of its beta launch.
MetaCene: A gaming challenge connecting MMORPG gamers and Web3 fanatics, that includes a world divided into three chapters and a number of other NFT collection.

Key Efficiency Metrics and Milestones

Day by day Energetic Customers and Transactions: Important spikes in day by day energetic transactions and addresses throughout key durations.
Whole Worth Locked (TVL): Reached a peak of $437.4 million in June 2024.
Buying and selling Quantity: DEX buying and selling quantity reached $93.8 million in Might 2024.
Person Incentives: Mantle's initiatives just like the Vacation Raffle and restaking applications, have pushed person engagement and ecosystem development.

Mantle Community Evaluate: Closing Ideas

The Mantle Community has strategically positioned itself as a number one contender within the Ethereum Layer 2 panorama by leveraging its sturdy monetary backing, modern technological developments, and a various, quickly increasing ecosystem. From its early growth utilizing Optimism's OVM to adopting the OP Stack and introducing superior information availability options like Mantle DA, Mantle has persistently pushed the boundaries of scalability and effectivity.

The community's strategic concentrate on DeFi, NFTs, and gaming, coupled with important person incentives and partnerships, has pushed spectacular development in whole worth locked (TVL) and person engagement. As Mantle continues to evolve and combine cutting-edge applied sciences, it stands poised to play a pivotal position in the way forward for decentralized purposes and blockchain scalability, solidifying its place as a formidable participant within the aggressive Layer 2 enviornment.

Incessantly Requested Questions

What’s the Mantle Community and the way Did It Originate?

The Mantle Community is a Layer 2 scaling resolution for Ethereum that originated from BitDAO, a distinguished decentralized autonomous group (DAO). BitDAO proposed the incubation of Mantle in June 2022, and by Might 2023, Mantle absolutely merged with BitDAO. This strategic transfer was aimed toward specializing in Layer 2 scaling options, leveraging BitDAO’s huge monetary assets and governance framework. Mantle’s growth has been marked by important upgrades, such because the Tectonic V2 improve in March 2024, enhancing its scalability and effectivity.

How Does the Mantle Community Deal with Transactions?

Transactions on the Mantle Community are initiated by customers via RPC nodes or by dApps utilizing the MantleSDK. The sequencer then receives these transactions, making certain they’re legitimate and costs are paid. Utilizing the op-geth software program, the sequencer verifies the state and constructs new blocks, that are then compressed and encoded into batches by the op-batcher. These batches are submitted to Mantle DA, an information availability supplier powered by EigenLayer, making certain environment friendly storage and fast information retrieval for dispute decision.

What are the Key parts of the Mantle Ecosystem?

Mantle’s DeFi ecosystem is powerful, with important purposes equivalent to Pendle, INIT Capital, Service provider Moe, Agni Finance, and Puff’s Penthouse. Pendle leads with a TVL of $117.3 million, permitting customers to commerce tokenized future yield. INIT Capital focuses on democratizing liquidity entry, whereas Service provider Moe, the biggest DEX on Mantle, makes use of a Liquidity E-book protocol. Agni Finance makes a speciality of spot buying and selling with concentrated liquidity, and Puff’s Penthouse gives gamified staking with a TVL of $25.66 million.

How Does Mantle Assist NFT and Gaming Initiatives?

Mantle Community actively helps NFT and gaming tasks to diversify its ecosystem. NFT initiatives embrace Mintle, a secondary market developed with Rarible, and Co-Museum, a community-driven digital artwork platform. On the gaming entrance, Mantle has allotted $5 million to assist tasks like Catizen and MetaCene, which have seen important person engagement and transaction volumes. These efforts are a part of Mantle’s broader technique to foster innovation and drive person adoption throughout numerous sectors inside its ecosystem.