[PASSED] MIP-23: $MNT Supply Optimization in Preparation for Launch

This proposal is authored by Cateatpeanut, the Mantle core contributor team, and advisors including Jordi (@gametheorizing).

1. Background

This proposal is triggered by the upcoming deployment of $MNT token as authorized by BIP-21 and MIP-22. We have previously received a lot of Mantle community feedback regarding the high fully diluted supply of $BIT and $MNT, and this presents a good opportunity to take first steps to optimize the numbers in preparation for $MNT token launch.

2. Proposal

By voting “Yes”, you endorse the following terms:

  1. Non-conversion of 3 billion $BIT tokens: 3bln $BIT tokens currently held in Mantle Treasury will not be converted to $MNT. This decision will effectively reduce the fully diluted supply of $MNT at launch by 3bln tokens when compared to $BIT.

  2. [Edit 1] Non-converted $BIT tokens will be sent to the nominated burn address. For additional details on this address please refer to the following research article.

3. Supporting Information

Disclaimer: Please note that the following supporting information provides additional context and aspects related to the proposal. While it is not an official component of the proposal, any modifications must conform to the proposal’s terms.

3.1 Impact of Proposal

Approximate numbers:

Holder Category Current* Proposed Vesting, Distribution
Mantle Treasury $MNT 6,045,424,258 3,045,424,258 Based on Mantle Governance Proposals
Circulating $MNT 3,173,892,510 3,173,892,510 None
Fully Diluted Supply 9,219,316,768 6,219,316,768

(*) Based on the latest estimates of current Mantle Treasury $BIT holdings and the MIP-22 1:1 conversion.

3.2 Optimization Analysis

3.2.1 Objective

The objective of this optimization analysis is to achieve a balanced approach to managing the amount of $MNT tokens to be held in the Mantle Treasury. This is accomplished by considering the following competing factors:

  1. Minimizing the fully diluted supply of $MNT to enhance predictability for current and future token holders; and

  2. Ensuring adequate resources are available to support ongoing and future product development and adoption activities.

3.2.2 Key Considerations

To effectively optimize the amount of $MNT to be held in Mantle Treasury, it is important to keep in mind the following points:

  • Mantle Governance 's Process: The distribution of $MNT tokens from Mantle Treasury follows Mantle Governance’s process. Currently, the primary active proposal is the BIP-19 Mantle Network Budget, covering up to 6 months of testnet and 12 months of mainnet. BIP-19 allows for a maximum allocation of 100M $BIT/$MNT for Ecosystem Incentives and 45M $BIT/$MNT for Technology Partner Incentives. The current run rate, as visible on the Treasury Monitor, is within the allocated limits.

  • Dynamic Spend and Accumulation: Resources from Mantle Treasury are allocated to product development and product adoption, leading to the accumulation of resources through medium-to-long-term protocol fees. This dynamic process requires ongoing evaluation and adjustments.

  • Multi-Asset Resources: In addition to its native token $MNT, Mantle Treasury holds a significant amount of other resources, such as USDC, USDT, and ETH. The management of these additional assets introduces complexities that must be considered.

3.2.3 Major Resource Spend Categories

  • User Incentives: Driving user adoption of Mantle products is a priority, achieved through the implementation of various strategies such as multi-season achievements, quests, and other incentive programs. Target metrics for user adoption include daily active users, total transactions and protocol fees, total value locked (TVL), and other relevant product adoption metrics. These incentives aim to attract and engage users within Mantle Ecosystem.

  • Technology Partner Incentives: This category aims to incentivize dApps, infrastructure service providers, and core protocol technology partners who contribute to the growth and development of Mantle Ecosystem. By providing incentives to these partners, Mantle aims to foster collaborations and partnerships that enhance the ecosystem and the overall user experience.

  • Core Contributor Team and Advisors: This category is subject to the same budget proposal process, ensuring transparency and accountability in the allocation of resources to the team and advisors who actively contribute to the success of the project.

  • Other Opportunities: This category includes potential opportunities that may arise, such as acquisitions, token swaps, treasury sales, and other deals. Each opportunity will be evaluated on a case-by-case basis, taking into consideration their potential benefits to Mantle Ecosystem and alignment with the project’s goals.

3.2.4 Major Resource Accumulation Categories

  • Mantle Protocol Fees: Mantle Network charges gas fees for L2 transactions and incurs fees for rollup to Ethereum L1, as well as various protocol node operators (e.g. Data Availability). Further details and industry comparisons on protocol fee dynamics can be found here: https://defillama.com/fees. While there may be a short-term outflow of Treasury resources, if the Mantle community votes to allocate resources effectively, this allocation can contribute to net positive protocol fee generation in the medium-to-long term.

  • Mantle Treasury Yield: Another potentially significant source of resource accumulation is deploying Mantle Treasury to various staking service providers, such as ETH staking via Mantle LSD.


Reserved for updates and edits.


Here is the effective “burn” everyone asked for!


Wanna ask something, after everything migrates from $BIT to $MNT, the BIP-20’s plans will still be applicable to $MNT in future?

And one more question, will the market cap be affected after the fully diluted supply become 6,219,316,768?


The Bybit contributions mentioned in BIP-20 were accelerated per BIP-21 and sent to the treasury in one go: Ethereum Transaction Hash (Txhash) Details | Etherscan.

Market capitalization = per unit price x circulating supply. Changes in total supply has an implications on the fully diluted value, but no automatic impact on the market cap.


Thanks for the information


How’s Mantle team will going to arrange with the 30bln $BIT?


What will happen to the remaining 3 billion BIT? Into a black hole? burn?


honestly im new here so how do I vote? or is there a chance to vote on DAO about this soon? would love to vote to get Bit Delegate role (missed the chance to vote on previous proposal sadly).

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I will vote yes also if there is burn mechanism available…

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I vote Yes. I’d say to burn the remaining 3B $MNT

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I have a basic misunderstanding, so maybe someone can help me here…what will happen to the 3BB $BIT tokens that don’t get converted? I mean, there will ultimately be a kill switch that will eliminate any value attached to that token and there should be no market for it after the conversion, correct? If they have no value and no purpose, why not just burn the tokens all together? I’m sure that there is something that I am missing here, so I look forward to any replies. Thank you, Mantle Fam!

(ok…I just read through the rest of the comments and I see that there are many others who are asking the exact same thing, so I’ll leave my comment here among the others so they can be addressed by the DAO…)

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What will be the fate of these 3 billion BIT? Will they be converted into other tokens like USDT/USDC/ETH that already make up the Mantle treasury or will they be burned?

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I’ve not voted yet, would there be another proposal because I missed the last one.

Wouldn’t it show more confidence in MMT if all BITs were converted?
It would also be a better commitment to MNT and its development.
Otherwise, it could seem as if the MNT core unconvinced regarding the own currency?
Fully converting MNT would have a native interest to increase value, avoid inflation, develop burn mechanisms and thus deflation and increase value.

So Id tend to vote NO

In general, it is a good idea to diversify the treasury.
Also to hold less USD-related stables, as these might again be targeted by the FIAT gang, who are interested in creating unique selling points for their CBDCs!
Functioning and worst case proven stables, as well as TopCoins with wide distribution and low whale portions are probably the best choice.

as volatile market conditions my opinion is to reduce circulating supply as much as possible to take max benefits MNT token which lead to increase market price for MNT token after that the supply may increase gradually.


After reading the proposal and all the discussion i vote YES. I think it will be a good decission.

Agree great idea lets burn :slight_smile:

Sounds good, but like many here, I don’t understand what will happen to the remaining 3b $BIT tokens? It is difficult to make an informed decision without this information.


This is a good move. Will effectively reduce the circulating supply and thus increasing the demand and price of the token $MNT. Interesting to see how it all plays out

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