Magic Eden to launch its native token on December 10 in long-awaited airdrop

Magic Eden, one of the top NFT sites, is ending the final stretch until its token generation and airdrop. The NFTs platform will launch its native asset on December 10. 

Magic Eden ran a long campaign with multiple demands, setting up expectations for a valuable airdrop. The platform announced its token generation event will arrive on December 10. 

The TGE and listing will happen in the same day, after Magic Eden already revealed its tokenomics. ME tokens will have a supply capped at 1B, suggesting a high per-unit nominal price. The upcoming ME token may also feature cross-chain capabilities, to tap the most active networks for NFT auctions. Additionally, Magic Eden will encourage holding ME and becoming a part of the ME DAO. This approach will ensure the new recipients do not sell off all tokens, instead being able to choose participation in the platform’s future decisions. 

The airdrop will distribute 12.5% of the tokens to users with a long track record of using the NFTs and DEX platform. The remaining tokens will also go to the community, as subsequent rewards for trading on Magic Eden. The supply of ME will start at 250M, doubling within a year, and reaching 750M within 18 months. After that, ME will flow into the ecosystem via regular rewards and redistribution. The ME token will be initially operated and distributed by the ME Foundation, a specially created entity with a constitution and a goal of community-building.

Magic Eden will have a four-year unlocking schedule for ME tokens. | Source: Magic Eden

A total of 50.2% will go to the community over the coming four years. Magic Eden will also award its early backers. The platform is one of the heavily funded Web3 projects, raising a total of $159M in several rounds. The remaining tokens will go to the team, contributors, and strategic participants.

ME token ownership may be based on Diamond holdings

The ME token was first mentioned in August 2023 as the goal of the long-running airdrop campaign. Magic Eden awarded Diamonds for all activity, from registration to trading and launching NFT collections. Diamond bonuses were also available for going through the Magic Eden wallet. 

Diamond ownership may be one of the elements for the airdrop, though there is no explicit conversion rate between diamonds and ME. Magic Eden will announce its allocation based on organic traffic, to avoid low-quality trades and Sybil wallets. All rewards will be paid out through the native Magic Eden wallet. 

The ME token will be based on the Solana chain, but the activity and rewards are available for using any blockchain for buying and trading collections. There is no predetermined amount of ME tokens yet. Magic Eden aimed to make its users hold onto Diamonds, by issuing additional loyalty-based NFTs. 

The value of Magic Eden lies in tapping NFTs from all major networks, including Ethereum, Solana, Polygon, as well as Bitcoin Ordinals. Magic Eden had a visible spike of Ordinals activity, which may contribute to the airdrop distribution. The platform carried up to 80% of all activity for Ordinals and BTC Runes.

NFTs showing renewed signs of activity

NFTs are showing signs of reawakening, after largely dropping off the map since their peak in 2021. Following the peak activity in meme tokens, NFTs are becoming appealing again for their meme-like potential. NFT sales and value inched up in October and November, sparking hopes of a bigger recovery.

NFT activity is back to levels not seen since April, tracking the market-wide recovery. The interest in NFTs increased after Vitalik Buterin minted Patron NFT on the Base blockchain. Additionally, Solana’s prominence helped create a new demand for NFTs. Solana increased its market share of NFTs in the past months, far surpassing the share of Ethereum. Base is also taking over NFTs activity, as high fees remain a problem for timely transfers and trading. 

Blue chip collections are also making a return. Crypto Punks, the most traded and valuable collection, increased its floor price above 37 ETH, reaching a three-month peak. Bored Ape Yacht Club also saw sales above its usual range, rising to more than 12 ETH. 

The increased activity also made Magic Eden more competitive, while OpenSea’s monthly activity declined in the past three months.