Ben Gruenbaum, a former community data analysis contributor at Magic Eden and founder of Magic Lab, said in a post on X that Magic Eden changed its rewards, governance, product and strategic direction after users committed to long-term $ME lockups. He said the token has a fixed supply of 1 billion, with 225 million set aside for active user rewards over four years on a linear unlock schedule, while locked tokens can remain inaccessible for as long as four years. Gruenbaum also pointed to changes in distribution figures across Season 1 and Season 2, a 5 million $ME community fund, and a Magic Lab proposal seeking 295,000 $ME. Based on a $0.60 price, that budget would equal about $177,000, though he said the decline in price reduced its value. He added that users remained locked while Bitcoin and EVM markets, Runes infrastructure and wallet products were shut down, with rewards shifted to USDC. He also said Magic Eden made a $75 million commitment to Dicey, and that some top stakers reported problems claiming USDC and have filed lawsuits.
According to ChainCatcher, Ben Gruenbaum, a former community data analysis contributor at Magic Eden and founder of Magic Lab, said in a post on X that the NFT marketplace changed its rewards, governance, product and strategic direction after users had committed to long-term $ME lockups.
$ME allocation and lockup structure
Gruenbaum said $ME has a fixed supply of 1 billion tokens. Of that amount, 225 million were reserved for active user rewards over four years and set to unlock linearly. He said lockups can last as long as four years and cannot be withdrawn early.
Reward distribution and fund figures
He said Season 1 distributed 10 million $ME and later added another 2.3 million because of issues. Season 2 rewards were increased from 8 million to 10 million $ME. The community fund was launched with 5 million $ME.
A proposal backed by Magic Lab sought 295,000 $ME. At a price of $0.60, that would be worth about $177,000, though Gruenbaum said the drop in price reduced the budget.
Product changes and complaints
Gruenbaum also said users remained locked while Magic Eden shut down its Bitcoin and EVM markets, Runes infrastructure and wallet. During that period, rewards shifted to USDC.
He added that Magic Eden had committed $75 million to Dicey. Some top stakers, he said, reported problems claiming USDC and have filed lawsuits.
Gruenbaum said the issue is not a story about a token price decline, but about core parts of the ecosystem changing after users made a long-term commitment.
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