Forward the Original Title‘详解Merlin Chain的M-Token玩法，35亿美金的流动性争夺战拉开帷幕’

On March 19th, Merlin Chain, a Bitcoin Layer 2 network, announced the launch of M-Token and initiated the release of M-BTC. As of the time of writing, 3,406 M-BTC tokens (valued at approximately $220 million) have flowed into the Merlin Chain through cross-chain transactions, causing unprecedented congestion on the Bitcoin network.

With the launch of M-Token, various projects within the Merlin ecosystem have also followed suit by releasing major updates. Merlin’s first Runes asset, $RUFI, is set to undergo a fair launch, the flagship blockchain game Dragonverse Neo has released its whitepaper and announced the upcoming launch of its native token $MDBL, MerlinSwap has announced the upcoming launch of its governance token $MP through an IDO, and ecosystem applications such as Influpia, MerlinSwap, and Unicross have successively gone live. With this, the battle for $3.5 billion in liquidity has officially begun.

This article will analyze what M-Token is, how to play it, and most importantly, the crucial question: what’s the purpose? If you’re interested in participating in Merlin’s Layer 2 interaction, it’s recommended to read this article as an introductory guide.

What is M-Token?

On February 7th, Merlin Chain launched its mainnet staking event, Merlin’s Seal, allowing users to earn points by staking various assets. These points can be used to claim airdrops of the token MERL in the future (20% of the total supply). The staked layer 1 assets will be mapped 1:1 to M-Token on the Merlin Layer 2 network.

M-Token serves two purposes:

1) To demonstrate how much layer 1 assets a user has staked.

2) To participate in interactions on the Merlin Chain Layer 2.

The original assets staked will be unlocked in April of this year, and users will need to destroy the corresponding M-Tokens to unlock their original assets.

Here’s an example:

· In February, Alice stakes 1 BTC in Merlin.

· In March, M-Token launches, and Alice can claim 1 M-BTC on the Merlin Layer 2.

· Alice can then use this 1 M-BTC to participate in various ecosystem projects on the Merlin Layer 2, earning profits through activities such as lending, yield farming, and participating in upcoming asset launches. Of course, Alice can also sell the M-BTC to others.

· During this process, Alice consumes 0.5 M-BTC. However, she can still participate in Merlin’s mining with a staked amount equivalent to 1 BTC.

· In April, when the staking is unlocked, Alice destroys the remaining 0.5 M-BTC and then claims back 0.5 BTC and the staking points corresponding to 1 BTC on layer 1.

If you haven’t participated in the mainnet staking event, you can also obtain M-BTC through cross-chain methods.

How to obtain M-Token (take M-BTC as an example)

Self-check: Which situation do you belong to:

Scenario One: Participated in Merlin’s mainnet staking activity: Obtained M-BTC through Merlin’s Seal.

Scenario Two: Did not participate in staking activity, only have BTC: Obtained M-BTC through Merlin Bridge cross-chain.

Scenario Three: Do not have BTC or M-BTC: Obtained BTC through cross-chain, then cross-chain to Merlin to obtain M-BTC.

Scenario 1: Receive via Merlin Seal

M-Token needs to be manually applied for and received by clicking the application link. The application process is very simple and does not require any gas fees; it is completely free.

Go to: https://merlinchain.io/mtoken

Click “Apply” and confirm.

Here are a few points to note:

For NFT-type M-Token: If you have staked an NFT-type asset, usually, in the Metadata of the Layer 2 M-Token, you can find corresponding information such as the ID of the Layer 1 asset, making it easy to match. If the Layer 1 NFT you staked is not intended to be sold, such as an inscription used for avatars, be sure to identify the corresponding M-Token. Once mistakenly sold, it cannot be retrieved from Layer 1.

M-Token is only bound to Layer 1 staked assets but not to points. If Alice stakes a blue box on Layer 1 and sells M-Blue Box to Bob, Alice can still continue to receive staking points for the blue box (all points until the end of the staking period), while Bob can exchange M-Blue Box for a blue box on Layer 1 after unstaking.

Activating M-Token only requires one operation. Once the application is clicked, subsequent M-Tokens will be automatically released. When initiating new staking, M-Tokens will also be automatically distributed.

Scenario 2: Cross-chain exchange through Merlin Bridge

1. Go to https://merlinchain.io/bridge.

2. Cross-chain BTC from L1 to Merlin by entering the quantity, and then confirm. Afterward, you can view BTC on Merlin in the AA wallet.

3. To ensure a smooth experience, it is currently recommended to transfer BTC from the AA wallet to your own EVM address on Merlin, and then go to MerlinSwap to exchange BTC for M-BTC.

4. Open the AA wallet and send BTC to your own EVM address.

5. Go to https://merlinswap.org/trade/swap and connect your EVM wallet.

6. Choose the BTC-MBTC trading pair, sign, confirm the swap, and then you have successfully obtained M-BTC.

Scenario 3: Obtain BTC from other chains across chains, and then use MerlinSwap to exchange it for M-BTC

Visit https://meson.fi/.

1. Connect your wallet, select the chain, enter the amount, confirm the cross-chain transfer, and receive BTC.

2. Use MerlinSwap to exchange BTC for M-BTC, following the steps outlined in scenario two.

3. Once you have claimed M-Token, the remaining steps involve wallet interactions and other routine operations. For more details, refer to: What preparations are needed before participating in the Merlin ecosystem?

What are the next application scenarios of M-Token? Ecological project progress express

Merlin Chain has achieved a milestone with a TVL (Total Value Locked) of over $3.5 billion within just over a month since the launch of its mainnet, surpassing Solana and Blast, garnering attention and recognition from the global Bitcoin community.

The launch of M-Token signifies that the $3.5 billion in assets previously staked now have liquidity on Layer 2, especially the 58% share of M-BTC. Where will these assets flow? This liquidity battle is a test for the Merlin Chain ecosystem applications. Whoever can handle such immense liquidity will attract the attention of the entire Bitcoin ecosystem.

Merlin Chain’s First Runes Asset $RUFI Launches Fairly on UniCross

On March 24th, the UniCross platform, invested by the Merlin official, launched the fair launch of the $RUFI runes. $RUFI is the first Runes asset in the Merlin ecosystem, introducing the concept of “runic interchange,” supporting a 1:1 conversion of BRC-20 tokens into Runes tokens, which is a notable conceptual innovation. 25% of the tokens are airdropped to Merlin and UniCross users, while 75% are fairly minted.

Related Article:Unicross’s $RUFI Participation Guide

The flagship chain game Dragonverse Neo is about to launch the ecosystem’s golden shovel token $MDBL.

On March 21st, the team behind Dragon Ball, the leading game on the Binance Chain, MOBOX, released the whitepaper for their game Dragonverse Neo. This whitepaper covers gameplay, economic models, and roadmap, encompassing a complete solution from AAA games to self-developed gaming chains. They also announced the upcoming fair launch of the game’s native token $MDBL on Merlin. As the ecosystem’s golden shovel, $MDBL serves several purposes:

1. Participate in liquidity mining, allowing users to mine various assets including gaming tokens, Merlin coins, and other assets that further increase earnings.

2. Participate in in-game gold farming. In the game’s parallel world, there are various game mechanisms where holding $MDBL enables users to earn rewards.

3. MOBOX will build Game Layer 3 (L3) on Merlin, where holding $MDBL allows participation in various passive income methods such as nodes and private servers.

All $MDBL tokens will be distributed to the community, with no reserved shares for the team. Of these, 69% will be fairly launched on Merlin Layer 2 using the Liquidity Bootstrapping Pool (LBP) method, requiring M-BTC for purchase. The remaining 31% will be allocated as ecosystem rewards, released as users participate in gold farming. Previously issued assets like Dragon Ball and MODragon will also serve as golden keys, continually increasing gold farming rewards for the community.

Related Article:How to play Web3 Genshin Impact on Merlin, the most popular interpretation of the Dragonverse Neo white paper on the Internet

Leading DEX project MerlinSwap is about to launch governance token $MP

On March 25th, MerlinSwap, the leading DEX on Merlin, will launch its Initial DEX Offering (IDO) on Merlin Starter, offering a total of 1.26 billion governance tokens $MP to BTC, M-BTC, HUHU, and VOYA holders.

1. $MP has a total supply of 21 billion tokens, with the IDO releasing 6%, totaling 1.26 billion tokens. The initial offering price is 0.001U, resulting in an initial market valuation of 21 million U.

2. Timing: March 25th, 11:00 AM (UTC+8) - March 27th, 11:00 AM (UTC+8).

3. Open to everyone, payments can be made using BTC, M-BTC, HUHU, and VOYA. Shares will be allocated proportionally based on account funds, so participants should pay attention to the participation ratios in different pools.

4. On the morning of March 27th at 11:00 AM, participants can claim their refunded funds, and token claim will begin at 2:00 PM the same day.

Related Article:@MerlinStarter/merlinstarters-ido-debut-mp-launch-introduction-f123c7d9aeb8">MerlinStarter』s IDO Debut: $MP Launch Introduction

The above projects can be considered as key focal points for the upcoming week. Additionally, the Merlin ecosystem has over 200 DApps of varying sizes set to launch soon. To avoid losses due to blind investment, thorough research is crucial. It is recommended to conduct preliminary assessments based on the following factors:

1. Engagement with Merlin’s official interactions.

2. Fundamental analysis: Team, funding, product capabilities.

3. Past asset performance and community base.

Disclaimer：

1. This article is reprinted from [Theblockbeats]. Forward the Original Title‘详解Merlin Chain的M-Token玩法，35亿美金的流动性争夺战拉开帷幕’.All copyrights belong to the original author [Blockbeats]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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