Question 1

What is ME?

Accepted Answer

ME is the official utility token adopted by Magic Eden and is issued under Solana's SPL standard. It does not represent inherent ownership of Magic Eden the company or platform revenue; in the official Rewards mechanism, ME's core verifiable use is to create Staking Power through staking, which is then used for future reward activities that meet the rules. SPL is the standard on Solana for creating, transferring, and recognizing fungible tokens by compatible wallets and applications. Accordingly, ME can be held and operated as a Solana token in compatible environments; whether it can be used for a particular platform feature still depends on whether that platform integrates the token and on the rules in effect at the time.

Question 2

What is the practical purpose of staking ME?

Accepted Answer

The direct effect of staking ME is joining Magic Eden Rewards and obtaining Staking Power for use in calculating future reward activities, rather than converting tokens into a fixed-interest deposit. After connecting a wallet holding ME, selecting an amount and lock period, and confirming the stake, the tokens are locked and the system updates that wallet's Staking Power based on the amount and lock period. Reward eligibility and actual rewards also depend on the rules of the activity itself and on whether the user completes the corresponding qualifying activities. In other words, Staking Power is one input in reward calculations and does not by itself guarantee a reward of any particular amount.

Question 3

Why does lock duration affect Staking Power?

Accepted Answer

Lock duration affects Staking Power because the official mechanism assigns higher multipliers to longer lock periods; for the same staked amount, choosing a longer duration increases the wallet's subsequent Staking Power. In the official example, staking 1 ME and locking it for 7 days increases Staking Power by 1.07, reflecting a 108% multiplier. The higher power obtained by increasing the amount or extending the lock period applies only to qualifying activities that occur afterward and cannot be applied retroactively to recalculate activities already completed. Therefore, the locking choice involves both future reward calculations and the liquidity trade-off that tokens cannot be withdrawn during the lock period.

Question 4

Can staked ME be withdrawn at any time?

Accepted Answer

No. Staked ME can only be withdrawn through the Rewards interface after the selected lock period ends; a withdrawal cannot be completed before the lock period has ended. After expiry, the user must still confirm the withdrawal in the Withdraw interface; the tokens do not automatically become retrieved merely because they have expired. Thus, completing the lock period and converting the tokens back into tokens available for the user's own use are two sequential steps.

Question 5

How should ME's total supply and distribution schedule be understood?

Accepted Answer

ME has a capped total supply of 1 billion tokens, and the official tokenomics plan distributes tokens over four years. Total supply describes the upper limit of tokens under the plan; it is not equivalent to the amount that has entered the market, is freely tradable, or has been claimed at a given point in time. Tokens are distributed across categories such as the initial community claim, community and ecosystem, contributors, and strategic participants, each with its own schedule. Therefore, understanding supply requires distinguishing total supply, a category's allocation, unlocked amount, and actual circulating amount; the four cannot be treated as the same number.

Question 6

How is ME's token allocation arranged?

Accepted Answer

The official allocation is: 12.5% for the initial community claim, 38.4% for community and ecosystem, 25.5% for contributors, and 23.6% for strategic participants, totaling 100%. Based on a total supply of 1 billion tokens, these percentages correspond to established allocations for different purposes and recipients, rather than a commitment that all tokens will be immediately available. The community and ecosystem category includes rewards for active users and ecosystem development uses. This category establishes a source of tokens available for those purposes, but eligibility, calculation methods, and distribution amounts for a specific activity must still be determined by the applicable reward rules.

Question 7

Can one wallet set multiple staking terms?

Accepted Answer

A single wallet can have only one active staking term; it cannot simultaneously establish two separate active staking buckets in that wallet, such as one short-term and one long-term. To stake additional ME at different terms, the official guidance requires using another wallet. When adding ME to an existing stake, the new tokens follow the existing lock period; if the term is extended, both the original and newly staked tokens will be subject to the longer term and the multiplier will increase accordingly. This design causes a wallet's Staking Power to be calculated around the same expiry date.

Question 8

What does the SPL token standard mean?

Accepted Answer

SPL is the general standard for fungible tokens in the Solana Program Library ecosystem; ME's use of this standard means that its balances and transfers can be handled under Solana's token rules by wallets and applications that support SPL. The standard addresses the technical representation and compatibility of a token in the Solana environment and does not automatically grant holders rewards, governance rights, or other platform entitlements. ME's staking and Rewards functions arise from Magic Eden's product mechanisms, not merely from its status as an SPL token.

Question 9

Where does the ME for platform rewards come from?

Accepted Answer

ME used for platform rewards may come from the community and ecosystem allocation in the tokenomics; this category explicitly includes rewards for active users. In other words, the funding source for reward tokens is a pre-designated allocation category, rather than newly created ME for each activity. From allocation to users actually receiving rewards, there are still stages including activity rule-setting, users completing qualifying activities, calculation of Staking Power and other conditions, and distribution according to the rules. The community and ecosystem allocation does not mean that every user is inherently entitled to a fixed share of it.

Question 10

Will contributor and strategic participant tokens all circulate immediately?

Accepted Answer

No. The official tokenomics arrangement places contributor and strategic participant allocations under lock-up and subsequent unlocking: most core contributor tokens are locked for at least 18 months after the token generation event; strategic participant tokens are locked for at least 12 months and then gradually unlock according to the arrangement. Locking means the relevant tokens cannot immediately enter tradable supply as ordinary available tokens during the lock-up stage; unlocking is the process of removing that restriction according to a schedule. It does not mean holders will necessarily sell, nor does it mean the actual circulating amount at a given point in time, because circulating supply is also affected by claiming, transfers, staking, and statistical methodology.

Question 11

Can the Staking Power of multiple wallets be calculated together?

Accepted Answer

Multiple wallets can be linked through Magic Eden's wallet management feature; starting from Season 2, the Staking Power of linked wallets is calculated as the sum of each wallet's Staking Power. Linking aggregates the power of multiple wallets into the same rewards view or calculation relationship. This does not merge ME in different wallets into one on-chain balance or alter each wallet's control over its tokens. To be included in the aggregate, ME in the relevant wallets must still be staked separately and meet the other conditions of the current reward activity.

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