Mantle

Introduction to Mantle

Mantle is an Ethereum Layer 2 network distinguished by two key factors: its modular architecture using external data availability, and its backing by one of the largest treasuries in crypto through BitDAO (now Mantle). Launched in July 2023, Mantle combines optimistic rollup technology with data availability from EigenDA, reducing costs while maintaining Ethereum security.

The network emerged from BitDAO’s ecosystem, giving it access to billions in treasury assets for ecosystem development, grants, and strategic initiatives. This financial foundation, combined with technical innovation in modular design, positions Mantle as a well-resourced competitor in the crowded L2 landscape.

Origins: From BitDAO to Mantle

BitDAO Background

BitDAO was one of crypto’s largest DAOs:

• Founded 2021 with Bybit backing
• $3+ billion treasury at peak
• Focused on DeFi and ecosystem development
• Transitioned to Mantle governance

The Merger

BitDAO evolved into Mantle:

• BIT token converted to MNT
• Treasury supports Mantle ecosystem
• Unified governance structure
• Massive development resources

How Mantle Works

Optimistic Rollup Base

Core L2 functionality:

• Transactions processed off-chain
• State posted to Ethereum
• 7-day challenge period for fraud proofs
• EVM compatibility

Modular Data Availability

Key differentiator:

• Uses EigenDA (not just Ethereum)
• Reduces data costs
• Maintains security through EigenLayer
• First major L2 with modular DA

MNT as Gas Token

Unlike most L2s:

• MNT used for transaction fees (not ETH)
• Creates token utility
• Supports ecosystem economics
• Unique among Optimistic rollups

Technical Specifications

Metric	Value
Block Time	2 seconds
Type	Optimistic Rollup
Data Availability	EigenDA + Ethereum
Gas Token	MNT
EVM Compatible	Yes
Challenge Period	7 days

The MNT Token

Utility

MNT serves multiple purposes:

• Gas Fees: Pay for transactions
• Governance: Vote on proposals
• Staking: Secure additional services
• Treasury: Ecosystem funding

Tokenomics

From BIT conversion:

• ~6.2 billion MNT supply
• Treasury holdings significant
• Ecosystem incentives
• Long-term development funding

Treasury Advantage

Massive resources:

• Billions in assets
• Ecosystem grants
• Strategic investments
• Long-term runway

Ecosystem Development

DeFi Protocols

Growing financial ecosystem:

• Agni Finance: Native DEX
• Lendle: Lending protocol
• FusionX: Trading platform
• Merchant Moe: DEX

Liquid Staking

mETH Protocol:

• Mantle’s liquid staking
• ETH staking returns
• DeFi composability
• Significant TVL

Gaming and NFTs

Entertainment focus:

• Gaming partnerships
• NFT infrastructure
• Developer incentives

The Treasury Model

Ecosystem Funding

How Mantle deploys resources:

• Grant programs for developers
• Liquidity incentives
• Strategic partnerships
• Marketing and growth

Sustainability

Long-term thinking:

• Treasury management
• Revenue generation
• Ecosystem reinvestment
• Conservative deployment

Competition and Positioning

vs. Other L2s

Aspect	Mantle	Arbitrum	Base
DA Layer	EigenDA	Ethereum	Ethereum
Gas Token	MNT	ETH	ETH
Treasury	Massive	DAO-controlled	Coinbase
Focus	Modular	DeFi	Consumer

Modular Advantage

EigenDA benefits:

• Lower data costs
• Scalability headroom
• Innovation potential
• Trade-offs in security model

Challenges and Criticism

Centralization Concerns

Current state:

• Sequencer centralized
• BitDAO/Bybit influence
• Governance concentration
• Development control

Competition

Crowded L2 market:

• Arbitrum’s ecosystem lead
• Base’s distribution
• Blast’s incentives
• Optimism’s Superchain

Token Distribution

Questions about:

• Treasury concentration
• Insider holdings
• Long-term distribution
• Value capture

Recent Developments

EigenDA Integration

Modular expansion:

• Live data availability
• Cost reductions
• Scaling improvements

mETH Growth

Liquid staking success:

• Billions in TVL
• DeFi integrations
• Yield generation

Ecosystem Expansion

Growing applications:

• More protocols deploying
• Developer grants active
• User growth

Future Roadmap

Development priorities:

• Decentralization: Sequencer and governance
• Scaling: Further cost reductions
• Ecosystem: More applications
• Interoperability: Cross-chain features
• New Primitives: Infrastructure expansion

Conclusion

Mantle represents a well-funded experiment in modular rollup design. The combination of EigenDA data availability, MNT gas token, and massive treasury creates a differentiated position in the L2 landscape. Whether these advantages translate to sustainable ecosystem growth remains to be proven.

The treasury provides runway that most competitors lack, enabling patient ecosystem building. The modular architecture points toward where L2 design may evolve. For developers seeking a well-resourced platform with innovative technology, Mantle offers compelling infrastructure with strong financial backing.