Controversial MANTA airdrop sparks discontent in DeFi community | Posted by Zameer Attar | Coins | January 2024
The highly anticipated launch of the MANTA network has left the decentralized finance (DeFi) community feeling frustrated. Manta Network, the third largest layer 2 on Ethereum with a total locked value of $885 million, introduced its own MANTA token to the market, sparking both excitement and disappointment.
The MANTA token, currently trading at $2.44, has garnered attention, but its airdrop allocation strategy has caused discontent among early adopters. With a fully diluted valuation of $2.1 billion, the token ranks 117th in market capitalization, according to Coinmarketcap.
Manta Network has reserved 30 million tokens, equivalent to 3% of the total supply, for airdrops to reward early users of the network. However, the results fell short of the expectations of many DeFi enthusiasts, sparking negative reactions across social platforms.
“Manta New Paradigm is the most disappointing airdrop of the year.” JayXBTFrom X, cryptocurrency content creator. “I deposited 1 ETH, my team deposited a total of 2.5 ETH (and) what I get is 26 $MANTA, currently worth $65.”
“Manta Network was farming users, not users farming Manta lmfao,” said cryptocurrency trader MK.
Other companies like DeFi Dad assert Unable to transfer assets back from Manta’s L2.
point system
Additional complaints surfaced, adding to the community’s frustration as DeFi Dad and others reported difficulties reconnecting their assets on Manta’s Layer 2.
The airdrop is structured around a points system based on user activity within Manta Layer 2, known as Manta Pacific. Reminiscent of the points system popularized by NFT marketplace Blur, the points system aims to provide more transparency around airdrop eligibility requirements. Users will receive points for activities such as bridging, utilizing DeFi protocols, or owning specific NFTs, which will later be converted into token allocation during the airdrop.
The Manta Network ecosystem currently consists of Manta Pacific, the fastest growing ZK L2, and Manta Atlantic, the fastest growing ZK L1.
Manta Network operates under two networks: Manta Pacific and Manta Atlantic. Manta Pacific is a representative layer 2 chain, while Manta Atlantic serves as a layer 1 chain built on top of Polkadot. The project is positioned as a multi-module ecosystem for zero-knowledge applications.
Despite being the third largest Layer 2 by Total Value Locked (TVL), Manta Pacific lags behind in terms of transaction processing speed, processing less than 3 transactions per second (TPS). In comparison, other layer 2 networks such as Arbitrum and zkSync Era boast higher TPS figures, according to L2BEAT.
Designed to govern the Manta ecosystem, the MANTA token provides a variety of benefits to Manta Pacific, including gas savings and sequencer revenue for token holders, as highlighted in a press release shared with The Defiant.
According to the document explaining the airdrop mechanism, an additional 2% of the MANTA token supply will be distributed to users and contributors in the Manta ecosystem. The controversy surrounding the MANTA airdrop highlights the challenges the project faces in balancing community expectations with a fair token distribution mechanism.