Thread by @Slappjakke

Layer 2s have many options when it comes to their native token..

Gas Token?
Governance?
Decentralizing sequencer?
Validator staking?

Let's take a look at how @0xMantle drives utility to the $BIT token
🧵👇

1/17
In this thread I'll go through:

1️⃣ What is Mantle Network?
2️⃣ BitDAO and the $BIT token
3️⃣ BIT token utility
4️⃣ Concluding thoughts

2/17
1️⃣ What is Mantle Network?

@0xMantle is a optimistic rollup layer 2 scaling solution built on top of Ethereum

It offers EVM compability, hyper-scalability and low tx fees, with security inherited from Ethereum Mainnet

3/17
Mantle is built on the OP Stack and focuses on:

✅ Modular Design
✅ Data Availability (Eigenlayer EigenDA)
✅ Multiparty Computation
✅ Decentralized Sequencer

4/17
With a modular design and EigenDA for Data Availability, @0xMantle can deliver a hyper-scalable Layer 2 secured by re-staking.

Shortly summarized, instead of posting transactions (Data) to Ethereum L1, data is stored on EigenDA and made available by DA nodes.

5/17
The modular design also allows Mantle to replace any module if newer tech proves superior (such as switching to a zk-rollup) to continuously update with new capabilities

6/17
Mantle testnet is currently live, and their L2 Mainnet launch is coming up soon.

For more information check out my previous thread

https://twitter.com/Slappjakke/status/1616343196010938368

7/17
2️⃣ BitDAO and the $BIT token

@BitDAO_Official is a DAO with a massive warchest. Funded by trading fees from @Bybit_Official it has amassed $2bn in the treasury

Parts of this is being spent on incubating #MantleNetwork to drive additional utility to $BIT

8/17
BitDAO will use $BIT for an ecosystem incentive program, incentivizing both users and developers to lay down roots on the Mantle chain

✅ Grant program
✅ Ecosystem fund
✅ Marketing/listing support

There is no doubt the Mantle ecosystem will be boosted from the start

9/17
3️⃣ BIT token utility

✅ Gas Fee Token

$BIT will be used as @0xMantle gas fee token. This means users will need BIT to perform transactions, and gas fees will accrue to validators

BIT will be swapped for ETH to pay tx fees for txs committed to Ethereum Mainnet

10/17
✅ Staking Token - Validators

To provide crypto-economic security to the chain, $BIT will be used as the staking token on the validator network

Validators will earn yield from gas fees paid in $BIT

11/17
✅ Staking Token - Data Availability

Data Availability nodes using @eigenlayer EigenDA architecture will be secured by staked $BIT tokens

Validators will earn $BIT from tx fees for DA

As a DA validator, if you don't provide Data Availability, your $BIT will be slashed

12/17
✅ Staking Token - Sequencer

The sequencer is vital for a Layer 2 rollup by grouping transactions and creating the rollup block.

Currently all L2 sequencers are centralized (all are working towards decentralizing them)

13/17
@0xMantle is working towards a decentralized pool of sequencers to elevate security and improve performance.

$BIT will be staked on sequencer nodes for crypto-economic security and the nodes will generate yield on their stake.

14/17
4️⃣ Concluding thoughts

As the Mantle network and ecosystem grows more and more BIT will be utilized and accrued to validators and stakers, and in general bringing more utility to the token

The ecosystem incentives will distribute tokens to users and builders

15/17
Mantle is taking a different approach than we have seen with Optimism and Arbitrum, where they use ETH as the gas token, and their native tokens are so far only used for governance with plans in the future of being used for decentralization of the network

16/17
It will be very interesting to see the effects on having a native token as gas tokens, in addition to the staking validator use cases, and if it might become a blueprint for future L2s

(I expect to see a LOT of L2s launching in the near future)

17/17
This thread was made in collaboration with @0xMantle to spread awareness of their upcoming launch of Mantle chain

Follow me @Slappjakke for more alpha and defi education

Like/Retweet the first tweet below if you can:

https://twitter.com/Slappjakke/status/1642882157910839296