Mantle: The Transformation and Upgrade Journey of BitDAO

Mantle is an L2 scaling solution incubated by BitDAO, utilizing Optimistic rollup, a modular architecture, and decentralized data availability, aiming to achieve higher throughput and scalability.

Technical Features of Mantle

• Modular Data Availability: Enhance transaction throughput using EigenLayer, surpassing traditional L2. Accessible data availability allows Mantle to increase throughput without compromising security and reducing node overhead.

• Multi-Party Computation ( MPC ): Using MPC to minimize the trust risk of L2 execution results. Adopting threshold signature scheme technology, dedicated nodes contribute multi-signatures to improve the correctness of off-chain transaction execution results. This helps shorten the challenge period for withdrawals.

• Decentralized Sequencer: Mantle will decentralize its Sequencer to provide secure and trustless block production. By rotating a permissionless set of sequencers, it reduces the likelihood of single points of failure or censorship on the network.

Based on these features, Mantle adopts a modular approach, using EigenLayer as a data availability solution to avoid publishing transaction data on the Ethereum mainnet. This means that Mantle enjoys the security of Ethereum while avoiding transactions on Ethereum, providing new scalability possibilities.

In addition to using account abstraction provided by Biconomy, Mantle also addresses two major issues faced by optimistic rollups: the single point of failure that may result from highly centralized sequencers and the current 7-day fraud proof challenge period. By implementing multi-party computation, Mantle reduces the challenge period to 1 to 2 days, allowing nodes to independently verify blocks and enhance overall confidence.

Node Roles in Mantle

• Sequencer: Receives and records user transactions, produces blocks on L2, aggregates transactions to generate batches, obtains blocks verified by the MPC network, and broadcasts block data.

• Multi-party computation ( MPC ) node: "Sign" the transaction batch generated by the sorter, use verification to broadcast the batch through the L2 network.

• Rollup Validator: synchronizes aggregate data, verifies the state root, initiates fraud proofs, and provides aggregate data to users.

• DAO Node: Stores copies of transaction data and signs block data to ensure availability.

BitDAO Introduction

BitDAO is currently one of the largest DAO organizations, with a treasury holding $3.8 billion in reserve assets and raised $230 million in funding in June 2021. It is composed of numerous builders focused on Web 3.0 products, creating an ecosystem governed by $BIT token holders.

A certain trading platform donates to BitDAO regularly every day, averaging nearly 4 million USD per day, with a total donation amount exceeding 1 billion USD in the past year.

Project Team

The BitDAO community develops Mantle with the aim of creating a user-friendly network to expand Web3 adoption. The concept was proposed and implemented by the CEO of a trading platform and well-known members of the crypto community such as Sreeram from EigenLayer, among others.

The Mantle team has over 50 members and uses horizontal management. Key members include:

• Arjun Kalsy: Head of Ecosystem
• Jacob Chen: Product Owner and Strategic Advisor

Financing Status

Mantle, as a product of BitDAO, has not undergone external financing. BitDAO completed a private placement of $230 million in June 2021, led by Peter Thiel, Founders Fund, Pantera Capital, and others.

BitDAO currently has a treasury fund of $3.8 billion (, with 78.3% being $BIT ). The Mantle core budget address has $14.3 million (, which includes $9.8 million in $BIT and $9.4 million in USDC ).

Development Roadmap

Q1 2023: Launched testnet ( EigenDA+OPU ) 3 months later: Launch of the mainnet based on OPU 6-12 months later: Launch the mainnet based on zk-Rollup

Currently in the second phase of the testnet, the token conversion proposal has been approved, and deployment details are under discussion. The next step is the deployment of the $MNT token and the mainnet launch.

Token Economics

The Mantle ecosystem and the $MNT token are undergoing governance approval to determine key aspects such as token address, design, and initial distribution. Major proposals include:

BIP-21: Approval of brand and token merge, pre-authorized token conversion plan.

MIP-22 Key Points:

• $MNT should include scalability and minting capabilities.
• 1 $BIT exchanges for 3.141 $MNT
• The authorized core team determines the listing and delisting, conversion, and mainnet timing of the tokens.
• Create an $MNT-ETH liquidity pool using the yields from the deconstructed $BIT-ETH pool.
• Establish a temporary conversion library to support token creation and conversion

$MNT Token Allocation Highlights:

• User Incentives
• Technical Partner Incentives
• Core Team and Advisors
• Other acquisitions, token swaps, etc. (
• Token Burn

$BIT token:

• Launched on July 15, 2021
• Maximum supply 10 billion ) no inflation (
• After MIP-22 passes, it will be converted to $MNT at a 1:1 ratio.

![Mantle Explained: The Largest Decentralized DAO Organization, BitDAO's Transformation and Upgrade Journey])https://img-cdn.gateio.im/webp-social/moments-2314fdcbff920361c2e1ce7ff2edc18a.webp20&userId=983cb29f-1c52-4091-a69a-810373d1b0d1&cache=v2(

Governance Mechanism

Mantle mainly adopts an off-chain governance process:

1. Core team or community members initiate discussions
2. Forum Discussion
3. Formulate a formal proposal ) MIP (
4. $MNT holders vote on proposals
5. The core team implements the proposals that have been approved.

This is an "off-chain" governance, where voting results do not automatically trigger product updates or financial operations.

![Mantle Explained: The Largest Decentralized DAO Organization, BitDAO's Transition and Upgrade Path])https://img-cdn.gateio.im/webp-social/moments-99eb2d804c66507d3f79a0792ba510a1.webp20\u0026userId=983cb29f-1c52-4091-a69a-810373d1b0d1\u0026cache=v2(

Latest Developments

May 25, 2023: Upgraded to Testnet Phase Two "Ringwood"

AMA Highlights on May 29:

• Token conversion may be executed in June.
• $MNT will be used as the network fuel token
• Currently researching ecosystem incentive measures
• Measures will be taken to prevent sybil attacks.

MIP-22 is currently voting on Snapshot from May 31 to June 7 )

Ecosystem

The Mantle ecosystem page currently lists 49 projects, mainly focused on the gaming sector, with fewer DeFi and infrastructure projects.

Summary

Mantle, as a new public chain on the L2 track, faces intense competition. Its core technologies include Optimistic rollup, EigenLayer modular DA layer, MPC, and decentralized sequencer, aiming to improve TPS and reduce fees.

As part of BitDAO, Mantle has ample financial support. However, BitDAO has a close relationship with a certain trading platform, leading to high token concentration and raising concerns about decentralization. The poor price performance of $BIT is also worrying.

The ecosystem is predominantly focused on gaming Dapps, while DeFi and infrastructure still need improvement.