Magic Eden Announces Major New Policy: 15% Revenue Injected into ME Tokens, Initiating a New Cycle of Value Growth

Magic Eden announced that starting February 1st, 15% of the platform’s total revenue will be directly injected into its native token ME ecosystem.

This policy means that every month, the platform will allocate 7.5% of its total revenue to buy back ME tokens on the open market, and an additional 7.5% will be rewarded to ME stakers in USDC.

As of January 20th, Gate data shows ME priced at $0.245, with a market cap of approximately $104 million. This new policy is expected to bring sustained buying pressure and increase scarcity for the ME token.

01 New Policy Analysis

The revenue distribution policy announced by Magic Eden marks an upgrade of its token economic model from a simple transaction fee rebate to a comprehensive revenue sharing system covering the entire ecosystem.

The previous “market transaction fee only” ME buyback mechanism will be phased out, replaced by a more holistic and sustainable value distribution framework.

The core structure of the new policy can be summarized in a simple table:

Staking weight depends on two key factors: amount staked and staking duration, meaning long-term, large-stake stakers will receive higher proportions of USDC rewards.

This mechanism encourages users to hold and stake ME tokens long-term rather than engaging in short-term trading, thereby enhancing the stability of the entire ecosystem.

02 Ecosystem Foundation

To understand the importance of this new policy, it is essential to recognize Magic Eden’s position within the broader crypto ecosystem. It is not just an NFT trading platform but has grown into a multi-chain digital asset trading hub.

Magic Eden currently supports multiple blockchains including Solana, Bitcoin, Ethereum, Base, ApeChain, Abstract, Berachain, Monad, Avalanche, Arbitrum, Sei, BNB Chain, and Polygon.

The platform’s comprehensive strength is impressive: over 3.5 million wallet addresses, more than 70 million transactions processed, with a total trading volume of $6 billion.

In specific sectors, Magic Eden’s dominance is particularly evident. It is the top-ranked DEX in the Bitcoin ecosystem, handling over 80% of Ordinals and Runes trading volume. In the NFT space, it accounts for 60% of revenue share and 29% of user share, making it an undisputed industry leader.

03 Token Economics

The total supply of ME tokens is 1 billion, with a planned gradual release over 4 years.

More than half (over 50%) of the token allocation is dedicated to the community, reflecting a user-centric philosophy. The specific distribution is as follows: initial airdrop accounts for 12.5%, community and ecosystem 37.7%, contributors 26.2%, strategic participants 23.6%.

Currently, the circulating supply of ME is approximately 428 million tokens, about 42.8% of the total supply. The fully diluted valuation (FDV) is approximately $244 million.

It is noteworthy that ME tokens are about to undergo a lock-up release. According to the plan, on February 10th, 10.73 million ME tokens worth about $2.62 million (1.1% of total supply) will be unlocked. This unlock involves multiple stakeholders, including the community and ecosystem (6.96 million), contributors (894.08 thousand), and strategic participants (2.88 million).

04 Market Impact

The new revenue distribution policy could have multiple effects on the ME token.

The most immediate impact is sustained buying pressure. The platform will use 7.5% of its total revenue each month to buy back ME tokens on the open market. This means that as long as the platform generates revenue, there will be demand for ME tokens, providing support especially during market downturns.

From a supply-demand perspective, buybacks will reduce the circulating supply of ME. Over time, the number of ME tokens in circulation will gradually decrease, and if platform revenue grows, buyback intensity will increase. This dual effect could significantly enhance token scarcity.

For stakers, the new policy offers dual income streams. Staking ME tokens not only has the potential for token value appreciation but also provides monthly USDC rewards from platform revenue distribution. This reward structure may attract more users to stake, reducing market sell pressure.

05 Investment Perspective

For investors interested in ME tokens, the implementation of the new policy requires a comprehensive analysis based on the token’s current fundamentals.

As of January 20th, Gate data shows ME trading at around $0.245, ranked 273rd by market cap, with a 24-hour trading volume of about $1.26 million. Price-wise, ME has increased by 20.36% over the past 7 days, outperforming many other cryptocurrencies.

Compared to its all-time high of $13.24, ME’s current price has dropped approximately 98%. This reflects the overall correction in the crypto market and also indicates that the token is at a relatively low level, potentially offering valuation re-assessment opportunities.

The fully diluted valuation (FDV) to current market cap ratio is about 2.34:1 (FDV of $244 million vs. $104 million market cap), which is moderate among crypto projects.

06 Future Outlook

With the new policy taking effect on February 1st, Magic Eden will enter a new chapter of its token economic model.

The platform has launched its third-quarter rewards program, offering 12 million ME tokens as rewards to encourage trading, swapping, and staking. This quarter will run until December 15th.

From a broader perspective, Magic Eden is building a cross-chain ecosystem super DApp strategy aimed at attracting more users from different ecosystems, enabling seamless multi-chain asset trading within Magic Eden’s mobile wallet.

Key points to observe after the policy implementation include: actual growth in platform revenue, transparency and execution of buyback operations, changes in staking participation, and the ultimate impact on token price.

For ordinary users, participating in the Magic Eden ecosystem has become more diverse: earning rewards through NFT trading, token swapping, Runes trading, or participating in Lucky Buy events.

Future Outlook

This token economic reform initiated by Magic Eden will officially kick off on February 1st. Monthly buybacks act as a stable engine for increasing ME token value, while staking rewards provide predictable cash flow for holders.

As the platform commands over 80% of the Bitcoin NFT market share, 15% of its revenue will serve as the most solid backing for ME token value. With the third-quarter rewards program and a growing community of stakers, a healthier and more resilient token ecosystem is taking shape.

The price trajectory of ME tokens will no longer merely reflect market sentiment fluctuations but will begin to depict the actual growth trajectory of a multi-chain trading platform. Value reversion has never been closer to the core business itself.