What is the Magma Airdrop? The First Liquid Staking Protocol on Monad

2025-03-13

Magma is the first liquid staking protocol on Monad, a high-performance Layer 1 blockchain network that is EVM-compatible, designed for speed and scalability. By staking MON tokens, users receive gMON, a liquid staking token that maintains flexibility while generating rewards.

Magma's testnet is now accessible, offering users the opportunity to interact with the protocol, test its features, and earn Magma Points through participation in various staking activities. Although the mainnet has yet to launch, engaging in the testnet positions users for a revolutionary airdrop following the Token Generation Event.

What is Magma?

What is the Magma Airdrop? The First Liquid Staking Protocol on Monad

Magma is a Liquid Staking Protocol owned and governed by a decentralized autonomous organization (DAO) on the Monad network.

It is designed to ensure fair token distribution through an implemented points program and serves as the first distributed validator outside the Ethereum ecosystem. Magma’s staking pool allows users to stake their Monad tokens and receive liquid-staked Monad tokens (gMON) in return.

Magma is built on Monad, the fastest Layer 1 (L1) Ethereum Virtual Machine (EVM) with the lowest transaction costs and optimal censorship resistance.

What is the Magma Airdrop?

The Magma Airdrop is an exciting opportunity for anyone looking to get involved and earn free cryptocurrency tokens. By understanding the concept and following the right strategies, you can maximize the potential benefits of this airdrop.

Step-by-Step Guide to Claiming the Magma Airdrop

According to Airdropalert, the guide for obtaining the Magma airdrop is as follows:

Access the Magma Testnet Portal: Visit the Magma testnet website, connect your digital wallet for testing purposes, and ensure the network used is the Monad Testnet.
Obtain Free Testnet MON: Get free testnet MON tokens from the Monad Testnet faucet and stake them on the Magma dashboard to receive gMON tokens (a guide is available).
Withdraw Staked MON: Unstake your MON tokens by selecting the "Unstake" option, specify the amount of gMON to exchange back, and confirm the transaction to retrieve your MON tokens.
Optimize Your Points: Increase your points by actively staking, inviting friends using your referral code, and monitoring your progress on the leaderboard.

Magma Governance and DAO Management

Magma is managed by an entity named Magma, where governance responsibilities lie with DAO members to ensure effectiveness and stability. Magma has several key responsibilities, including:

Creating, implementing, and updating essential protocol parameters.
Determining incentives for individuals or entities contributing to the DAO’s objectives.
Managing node operators, including appointing initial DAO-approved operators, identifying and vetting new operators, and sanctioning operators who violate network rules.
Regulating the DVT network.
Approving grants to support various research initiatives and protocol groups.
Compensating full-time contributors and handling other operational tasks.
Overseeing the bug bounty program and responding promptly to emergencies.
Collecting service fees from Magma, with the option to allocate them to insurance and development funds, and deciding fund distribution via DAO governance.

At the initial stage of Magma, governance is used to authorize third-party validators for delegation. In the transition to the protocol’s second phase, governance will redelegate stakes to Decentralized Validators, enhancing security and decentralization.

Read More: Crypto Airdrops

DAO Proposal Submission and Voting Process

The process for DAO proposal submission and voting consists of the following steps:

Community Discussion: Before submitting a formal proposal, users can initiate informal discussions in the governance forum. This is recommended to gather feedback and ideas before drafting a formal proposal. The forum is open for participation from all community members.
Proposal Drafting: DAO proposals can be submitted for voting, whether for off-chain community decisions or on-chain code execution. Proposals can aim to improve smart contracts, modify contract parameters, and more.
Final Call: After drafting a proposal, the Final Call period precedes the voting stage. During this period, there is a last chance to provide feedback, gauge community sentiment, and assess interest before moving to the voting stage.
Final Voting: Proposals are submitted on-chain using the Tally platform. Only DAO members who own or delegate at least 10 million Magma tokens via Tally can submit proposals.
Voting Period: After initiating a vote, a 2-day waiting period is followed by a 5-day voting period. This ensures ample time for all community members to delegate and vote. If a proposal meets the required quorum of 100 million Magma tokens, with over 51% approval, it is accepted.
Execution: Once approved, proposals involving code execution undergo a 10-day time lock before implementation. After the 10-day lock period, anyone can execute the transaction to enforce the DAO’s resolution.

Magma Roadmap

Magma will launch in two distinct phases:

Phase One

During the first phase, Magma will introduce the following features:

Liquid Staking (Delegation)
Magma Points
Governance

This initial launch phase will implement a delegated liquid staking model similar to Lido. A selected number of validators will be allowed to participate, and tokens will be staked among them. The Magma Points program will begin alongside the launch, along with the governance system.

Phase Two

During the second phase, Magma will introduce the following features:

Liquid Staking (Distributed Validator Technology/DVT)
DVT Implementation

The second launch phase will finalize the DVT implementation. At this stage, Monad’s distributed validators will be activated, and an application will be submitted to Monad governance to become an authorized validator for the blockchain.

Once a sufficient number of Magma DVTs are authorized and validating Monad, staked tokens from Phase One validators will be undelegated and re-delegated to Magma DVT validators.

Conclusion

The crypto world continues to evolve with exciting new innovations. One of the latest is the Magma Airdrop, the first liquid staking protocol on the Monad network. This article provides an in-depth look at what the Magma Airdrop is, how it works, and why it is a significant milestone in the Monad ecosystem.

Magma Airdrop marks an important milestone in the Monad ecosystem, bringing liquid staking innovations that allow users to maximize their rewards. With high liquidity and DeFi integration, Magma has the potential to become one of the leading protocols on the Monad network. Hopefully, this article provides a comprehensive understanding of the Magma Airdrop.