Mantle Network is an innovative Ethereum Layer 2 (L2) scaling solution engineered to address the long-standing challenges of high transaction fees and network congestion on Ethereum. By combining Optimistic Rollup technology with a modular blockchain architecture, Mantle delivers faster, cheaper transactions while maintaining Ethereum’s robust security framework. At the heart of this ecosystem is $MNT, its native utility and governance token, which powers transactions, enables decentralized decision-making, and supports staking for network integrity.
With strong backing from BitDAO, Mantle aims to carve out a significant role in the competitive L2 landscape by offering EVM compatibility and a developer-first approach. This article explores how Mantle works, the role of $MNT, and why it matters in today’s evolving blockchain environment.
Understanding Mantle Network
Mantle Network launched its mainnet on July 17, 2023, as a high-performance Ethereum Layer 2 solution. Its primary goal is to enhance scalability without sacrificing decentralization or security. By processing transactions off-chain and settling them on Ethereum (Layer 1), Mantle drastically reduces gas fees—by up to 80% compared to Ethereum—and increases throughput to over 500 transactions per second, more than 20 times Ethereum’s base capacity.
This performance boost makes Mantle an attractive option for users and developers seeking efficient alternatives within the Ethereum ecosystem. Importantly, Mantle remains fully EVM-compatible, meaning existing smart contracts and decentralized applications (DApps) can be deployed seamlessly without code modifications.
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How Mantle Network Works
Mantle leverages a combination of cutting-edge technologies to deliver speed, security, and efficiency. Three core components form the foundation of its architecture:
Optimistic Rollup with MPC Verification
Mantle uses Optimistic Rollup to batch thousands of transactions off-chain before submitting them to Ethereum. This method significantly lowers costs and improves speed. However, traditional Optimistic Rollups come with a 7-day challenge period for fraud proofs—a delay that can hinder user experience.
To overcome this, Mantle integrates Multi-Party Computation (MPC) nodes. These independent validators verify transaction data off-chain and sign off on valid state transitions. The more MPC nodes that confirm a result, the higher the confidence in its validity. This mechanism allows for faster withdrawals and improved trustlessness, all while preserving Ethereum’s ultimate security.
Asset transfers between L1 and L2 are managed through smart contracts on both layers, eliminating reliance on third-party custodians.
Modular Blockchain Design
Unlike monolithic blockchains where every node handles execution, consensus, and data storage, Mantle adopts a modular approach:
- Execution Layer: Handled by Mantle Network
- Consensus & Settlement: Secured by Ethereum
This separation enhances scalability by offloading computation while relying on Ethereum for finality and security. It also reduces operational overhead, making the network more efficient and cost-effective.
Data Availability via EigenDA
Data availability is critical for L2 security. Mantle uses EigenLayer’s EigenDA, a restaked security protocol, to store transaction data off-chain while ensuring it remains accessible to validators.
Mantle’s DA nodes publish validity proofs to Ethereum, allowing L1 validators to verify data integrity during fraud-proof windows. This integration not only strengthens security but also lowers costs compared to storing all data directly on Ethereum.
Together, these components enable Mantle to offer a scalable, secure, and developer-friendly environment that aligns with Ethereum’s long-term vision of a modular, multi-layered future.
What Is $MNT?
$MNT is the native cryptocurrency of Mantle Network, launched as an ERC-20 token on June 20, 2023. It serves multiple key functions across the ecosystem: transaction fees, governance, staking, and value transfer.
Utility: Paying for Transactions
Every interaction on Mantle—whether sending tokens or interacting with a DApp—requires gas fees paid in $MNT. This creates consistent demand for the token as network usage grows.
Governance: Powering Decentralized Decision-Making
$MNT holders have voting rights in the Mantle DAO, enabling them to propose and vote on protocol upgrades, treasury allocations, and strategic initiatives. One token equals one vote, promoting decentralized governance.
The governance model evolved from **$BIT**, the original token of BitDAO. $BIT holders could migrate their tokens to $MNT at a 1:1 ratio. Those holding $BIT on centralized exchanges typically experienced automatic conversion, while on-chain users followed official migration guides.
Staking and Value Transfer
Validators and nodes can stake $MNT as collateral to help secure the network. Staking incentivizes honest behavior and contributes to system stability. Additionally, $MNT can be traded across crypto markets or used for peer-to-peer value transfers.
$MNT Tokenomics Overview
The total supply and distribution of $MNT are managed by the Mantle DAO to ensure long-term sustainability and alignment with community interests.
At launch:
- 65.6% was held in the Mantle Treasury
- 34.4% entered circulation
A pivotal governance decision in June 2023 changed the trajectory of supply growth: the community voted not to convert $3 billion worth of $BIT from the treasury into $MNT. This effectively reduced the fully diluted supply, enhancing scarcity and long-term value potential.
Current allocation:
- 47.4% held by Mantle Treasury
- 52% in circulating supply
- 0.6% reserved for core operational budget
This disciplined approach to tokenomics reflects Mantle’s focus on sustainable growth and decentralization.
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Frequently Asked Questions (FAQ)
What problem does Mantle Network solve?
Mantle addresses Ethereum’s scalability limitations by reducing transaction costs by up to 80% and increasing throughput to over 500 TPS. It enables fast, low-cost transactions while maintaining Ethereum-level security through Layer 2 rollup technology.
Is Mantle Network EVM-compatible?
Yes. Mantle is fully EVM-compatible, allowing developers to deploy existing Ethereum smart contracts and DApps without rewriting code. This lowers entry barriers and accelerates adoption.
How is $MNT different from other L2 tokens?
$MNT combines utility (gas payments), governance (DAO voting), and staking (network security) in one token. Its supply was optimized via community governance to reduce inflationary pressure—a unique feature compared to many other L2 ecosystems.
Can I stake $MNT?
Yes. Nodes and validators can stake $MNT to participate in network security. Staking helps maintain system integrity and may offer yield incentives over time.
What is EigenDA, and why does it matter?
EigenDA is a data availability layer powered by EigenLayer’s restaking protocol. It securely stores transaction data off-chain while making it verifiable on Ethereum. This reduces costs and strengthens trust in Mantle’s rollup model.
How does MPC improve withdrawal speed?
Traditional Optimistic Rollups require a 7-day waiting period for fraud challenges. Mantle’s MPC nodes provide real-time validation of transaction validity, enabling faster withdrawals without compromising security.
Final Thoughts on Mantle Network
Mantle Network represents a compelling evolution in Ethereum scaling. By integrating Optimistic Rollup, modular design, and EigenDA-powered data availability, it delivers a high-performance L2 that balances speed, cost, and security.
Backed by BitDAO’s resources and community-driven governance via $MNT, Mantle is well-positioned to attract developers and users alike. While competition among L2s like Arbitrum, Optimism, and zkSync remains fierce, Mantle’s technical innovations and disciplined tokenomics give it a strong foundation for long-term relevance.
As Ethereum continues to scale toward mass adoption, solutions like Mantle will play a crucial role in shaping the next generation of decentralized applications.
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