Mantle

Mantle (MNT) has a rich history that dates back to its predecessor, BitDAO, a decentralized autonomous organization (DAO) known for its substantial treasury in the crypto space. The Mantle Network was launched in July 2023 as the first Layer-2 solution to be initiated by a DAO.

Before its mainnet launch, the Mantle team conducted extensive testing for six months, processing over 14 million transactions, deploying more than 140,000 smart contracts, and connecting with over 690,000 wallets. This rigorous testing ensured the network's stability and security.

In May 2023, the BitDAO community voted to consolidate BitDAO and Mantle into one brand, with all BIT tokens being converted to MNT tokens on a 1:1 ratio in June 2023. This rebranding aimed to eliminate confusion between the roles of BitDAO and the Mantle Network.

Since its launch, Mantle has made significant strides, including the integration of EigenLayer, an Ethereum-based data availability layer, which enhances the network's efficiency and scalability. The network has also formed notable partnerships, such as with Ondo Finance, to support its mission of bringing sustainable yield to its DeFi ecosystem.

Today, Mantle continues to evolve, with its native token, MNT, serving as both a governance and utility token. The token's distribution is governed by the Mantle governance process, with allocations for user incentives, technology partners, and the core contributor team.

Mantle Network is a Layer-2 scaling solution for Ethereum that leverages Optimistic Rollup technology to enable fast and cost-effective transactions. Here's a detailed overview of how it works:

Mantle Network adopts a modular blockchain architecture, which separates key blockchain functions across different layers. This approach minimizes the load on nodes and reduces transaction costs. The main components include:

1. Execution Layer: This layer handles transaction execution using an EVM-compatible environment. It produces L2 blocks and sends state root data to L1 Ethereum.
2. Consensus and Settlement Layer: These processes take place on L1 Ethereum, ensuring the security and validity of transactions.
3. Data Availability Layer: This layer, powered by EigenLayer's EigenDA module, stores records of roll-up transactions and makes them accessible to verifiers on both Layer 1 and Layer 2. It also publishes proofs of data validity to the L1 network.

Transactions on Mantle Network go through three main stages:

1. Initiation: A user initiates a transfer of funds or a task on the network. The transaction is composed, signed, and delivered to a Sequencer node for processing.
2. Handling: The EVM verifies the transaction and adds it to a pending block. Batches of transactions are then sent to the Ethereum layer.
3. Storage: Rollup verifiers synchronize the transaction data and make it accessible for other users and DApps. Data availability nodes synchronize the data on Layer 2 and guarantee access to it.

Mantle Network employs MPC nodes to verify the validity of blocks. These nodes function independently and compute state roots from transaction data to provide signatures for valid state transitions. Any malicious conduct results in the node being slashed, and the slashed amount is distributed among other MPC nodes.

Mantle Network inherits the robust security architecture of the Ethereum network. It also employs fraud proofs, where updated state data are published to a State Commitment Chain (SCC) contract on L1 Ethereum. Network actors can challenge the validity of the state data within a challenge period (currently set to 7 days). If the state data goes unchallenged, it is considered valid and final.

The Mantle governance process operates off-chain, with discussions initiated by the core contributor team or community members. The discussion's progression to a formal proposal depends on community interest and support.

The $MNT token is the native token of the Mantle network, serving both as a governance token and a utility token. It facilitates transactions by covering gas fees on Mantle Network and serves as collateral for Mantle Network nodes. Token holders have voting rights in the governance process.

• Optimistic Rollups: Enables fast and cost-effective transactions.
• Modular Architecture: Separates blockchain functions to maximize efficiency and reduce costs.
• EigenLayer Integration: Enhances data availability and accessibility.
• MPC Nodes: Verifies block validity and ensures security.
• EVM Compatibility: Allows for seamless interaction with the Ethereum ecosystem.

Overall, Mantle Network's innovative architecture and technologies aim to provide a scalable, secure, and cost-effective solution for Ethereum users and developers.

Mantle (MNT) has several strengths that make it a promising player in the Ethereum Layer 2 solutions space:

1. Modular Architecture: Mantle's modular design allows it to separate its blockchain functions into different layers, maximizing efficiency and reducing costs. This architecture enables the network to handle transaction execution, consensus, and settlement processes separately, making it more scalable and secure.

2. EVM Compatibility: Mantle is fully compatible with the Ethereum Virtual Machine (EVM), allowing it to seamlessly interact with the Ethereum ecosystem. This compatibility makes it easier for developers to deploy their smart contracts on Mantle, increasing its functionality and appeal.

3. High Transaction Throughput: Mantle claims to offer significantly higher transaction throughput compared to Ethereum, with the ability to process 500 transactions per second compared to Ethereum's 25 transactions per second. This high throughput is achieved through the use of optimistic rollup technology and a decentralized data availability layer.

4. Lower Transaction Fees: Mantle's transaction fees are reportedly 80% lower than those on Ethereum, making it a more cost-effective option for users. This is achieved through the batching of transactions off-chain before committing them to the Layer 1 blockchain.

5. Robust Security: Mantle inherits the robust security architecture of the Ethereum network and employs additional security measures such as Multi-Party Computation (MPC) nodes to verify the validity of blocks. This approach enhances security measures and reduces the challenge period over time.

6. Governance and Utility Token: The MNT token serves both as a governance token and a utility token, allowing token holders to participate in the decision-making process and covering gas fees on the network. It also serves as collateral for Mantle Network nodes.

7. Strong Community Support: Mantle has a strong community backing, with a treasury holding 47.4% of MNT tokens and 52% in circulation. The remaining 0.6% is reserved for the core budget. This community support is crucial for the network's continued development and growth.

8. Ecosystem Fund: The Mantle DAO has established an ecosystem fund backed by its treasury of $200 million, which is intended to fuel investments in early-stage projects that choose to operate on the Mantle blockchain. This fund provides financial support, operational assistance, advisory guidance, launch support, and networking opportunities to these projects.

These strengths position Mantle as a promising contender in the Ethereum Layer 2 solutions space, offering a scalable, secure, and cost-effective alternative to mainstream options.

Mantle (MNT) carries several risks that investors should be aware of. Here are some of the key risks associated with Mantle:

1. Data Availability Risks: Mantle's risk analysis includes ensuring data availability, which is crucial for system security. However, any failures in data availability could compromise the network's stability and user trust.

2. Fraud Risks: Mantle's Fraud Proofs mechanism is designed to detect and handle fraudulent activities. Despite this, the system is not immune to potential security breaches or manipulation attempts.

3. Forced Transaction Inclusion Risks: While the Forced Transaction Inclusion mechanism provides an emergency rescue mechanism, it also poses risks if not implemented correctly. This could lead to unintended consequences or asset losses in extreme situations.

4. Market Volatility Risks: Mantle's price can be volatile, and recent price movements can impact its risk score. InvestorsObserver has given Mantle a low risk score due to past price volatility in relation to volume changes.

5. Regulatory Uncertainty Risks: As a decentralized platform, Mantle faces regulatory challenges. The lack of clear supervision can lead to market fluctuations and risks for users.

6. Scalability Risks: Despite its focus on scalability, Mantle's practical scalability is yet to be proven. As the network grows, congestion and lag could become issues, affecting its performance.

7. Security Risks: While Mantle offers robust security, it is still susceptible to unknown security vulnerabilities and cyber threats. Safeguarding against these risks remains a persistent challenge.

8. General Investment Risks: As with any investment, there is always a risk of loss. It is crucial for investors to diversify their portfolios and not invest more than they can afford to lose.

These risks highlight the importance of thorough research and careful consideration before investing in Mantle (MNT).

• Jordi Alexander: Chief Alchemist at Mantle and CIO at Selini Capital.
• Franck Cassez: Member of the Mantle Research team.
• Andreas Penzkofer: Member of the Mantle Research team.
• Aodhgan Gleeson: Member of the Mantle Research team.
• Ben Zhou: Strategic advisor to Mantle and CEO and co-founder of Bybit.
• Jacobc.eth: Strategic advisor to Mantle and founder of Game7 and HyperPlay.