Mantle’s L2 Network Community in Uproar after Banning FTX Group
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In Brief
The Bybit-supported L2 network Mantle community proposed that the BIT token owned by FTX/Alameda should not be converted to new MNT token.
The Bybit-supported Layer-2 network, Mantle, is currently amidst a whirlwind of discussions. Central to this dialogue is the question of whether the BIT tokens, acquired by FTX/Alameda, should be eligible for conversion to Mantle’s new MNT token.
In 2021, Alameda secured a significant 100 million BITs through trading 362,315 FTT. Currently, their holdings stand at about 98.86 million BITs, valued at a substantial $42 million.
Mantle’s Forum Debates on BIT to MNT Transition Controversy
A proposal by a Mantle community member, Cateatpeanut, brought the debate to the forefront. At its core, the issue revolves around the absence of an intrinsic entitlement to migrate $BIT to $MNT tokens. It suggested that the BIT tokens held by the FTX Group should not undergo an automatic conversion to MNT, particularly considering specific ‘disqualifying factors’.
Cateatpeanut’s proposal explicitly advocated for the following:
- Suspending the current on-chain migration smart contract.
- Formulating a new $MNT migration smart contract or migration service, one which can potentially inhibit the automatic migratability of the FTX Group’s $BIT tokens.
Moreover, the on-chain migration contract stays inactive while awaiting the resolution of the ongoing discussion and the community’s consensus.
Community Members Weigh In
Several Mantle community members agreed with the proposal, raising concerns about FTX’s historical commitments and current position. One member, Igneus, emphasized the significance of the three-year no-sale pledge (from BIP-4), asserting its validity even in the event of FTX Group’s bankruptcy.
TaiwanDAO echoed this sentiment, highlighting the contract’s natural expiration with FTX’s bankruptcy and opposing the automatic migration to MNT. Another member, a950216t, voiced worries about burdening the entire community with the consequences of FTX’s shortcomings.
However, amid this widespread consensus, a notable observation by jorantan96 emerged. The member suggested that this instance might be a rare occurrence of unanimous agreement within the Mantle community.
The ongoing Mantle community discussion on converting BIT to MNT tokens reflects the broader intricacies and challenges inherent in decentralized systems and governance models.
Such debates offer insights into the intricate nature of contemporary collaborative decision-making within the blockchain domain. They underscore the significance of transparency, trust, and, above all — foster community engagement.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
More articlesNik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
