In May 2026, Manta Network unveiled two major decisions that fundamentally reshape the protocol’s underlying operational logic. First, it permanently ended the MANTA staking program, halting inflation-driven staking rewards. Second, it transitioned to fully independent operation of Manta Pacific’s Layer 2 infrastructure, eliminating reliance on third-party operators. These moves are interconnected, both pointing toward a core strategic direction: shifting from an inflation-driven incentive model to a long-term value framework anchored in network autonomy and ecosystem productivity.
For MANTA holders, the loss of staking rewards is an immediate signal. However, the deeper question is this: With the narrative of "passive yield" coming to an end, how will MANTA’s value capture mechanism be redefined?
Staking Program Termination and Sequencer Independence
On May 6, 2026, Manta Network officially announced the termination of its MANTA staking program. The core reason cited was that inflationary staking rewards—generated by minting new tokens—continuously dilute the value held by all MANTA holders over time.
On the execution side, staking rewards will officially cease two weeks later (May 20, 2026). Node operators can exit at any time starting now, and delegators can un-stake through the official dashboard whenever they choose, with full control over their funds.
Simultaneously, Manta Network announced another critical decision: it will independently operate Manta Pacific’s Layer 2 infrastructure, transitioning to a self-run sequencer and tech stack to enhance network autonomy and streamline operations. This marks the end of reliance on third-party sequencer operators for Manta Pacific, ushering in a new era of full-stack self-governance.
Additionally, the previously announced decommissioning of Manta Atlantic (the L1 network based on Polkadot) is underway. Its parachain slot is expected to expire between late July and early August 2026, at which point Atlantic will stop producing blocks. The team has made it clear that all resources will be consolidated into Manta Pacific (L2), and the slot will not be renewed. This marks Manta Network’s official transition from a "dual-network" strategy to a focused "single-network" approach.
From Dual-Network Expansion to Single-Network Focus
Manta Network’s technical architecture previously consisted of two networks: Manta Atlantic (a Polkadot-based L1 parachain) and Manta Pacific (a modular L2 deployed on Ethereum). Each served distinct strategic purposes—Atlantic targeted privacy transactions within the Polkadot ecosystem, while Pacific focused on deploying ZK applications in the Ethereum ecosystem.
Over the past year, the network’s focus has shifted significantly. Key milestones include:
| Date | Event |
|---|---|
| January 2024 | MANTA completed TGE, initial supply of 251 million tokens |
| January 11, 2025 | Manta Pacific TVL exceeded $851 million |
| January 29, 2025 | Manta Pacific TVL surpassed $1.7 billion |
| March 4, 2025 | Manta Pacific TVL reached $1.94 billion |
| March 11, 2026 | Official announcement of Manta Atlantic decommissioning |
| March 18, 2026 | Atlantic staking rewards stopped, new staking no longer accepted |
| May 6, 2026 | Announcement of MANTA staking program termination |
| May 20, 2026 | Staking rewards officially end |
| Late July to early August 2026 | Atlantic slot expires, block production stops |
This timeline clearly outlines Manta Network’s strategic evolution: from initial dual-network operation and staking-driven expansion, gradually shifting to a streamlined single-network focus, inflation control, and autonomous infrastructure.
Data and Structure Analysis: Current Token Status and TVL Trends
MANTA Token Core Metrics
As of May 14, 2026, according to Gate market data, key MANTA token metrics are as follows:
- Current Price: ~$0.08010
- Circulating Supply: ~467.55M MANTA (total supply: 1 billion)
- Market Cap: ~$37.44 million
- 24h Trading Volume: ~$2.9055 million
- 24h Price Change: -4.76%
- 7-day Price Change: +17.09%
- 30-day Price Change: +23.83%
- 1-year Price Change: -74.22%
- Fully Diluted Market Cap: ~$80.10 million (based on 1 billion total supply)
Token Allocation Structure
According to Manta Network’s published tokenomics, the total supply of MANTA is 1 billion, allocated as follows:
- Ecosystem & Community: 21.19%
- Foundation Treasury: 13.5%
- Team: 10%
- Airdrop Phase 1: 5.6%
- Airdrop Phase 2 (New Paradigm): 6.5%
- Annual Network Inflation (original source of staking rewards): 2% of total supply
Previously, the annual 2% inflation was used for staking rewards to secure the network. With the staking program terminated, whether this 2% annual inflation will also be discontinued remains unclear, as the team has not provided a definitive statement. This uncertainty is currently the biggest information gap in MANTA’s token economic model.
TVL Trend Review
Manta Pacific’s on-chain activity has seen significant growth over the past year. On January 11, 2025, Manta Pacific’s TVL reached $851 million, with a 7-day increase of 27.4%, setting a new historical high. By January 29, TVL further climbed past $1.7 billion, with over 11.44 million on-chain transactions, 537,000 wallet addresses, 519,000 active addresses, and more than 1,000 verified smart contracts deployed by ecosystem projects. On March 4, 2025, TVL broke $1.94 billion, up 4.15% month-over-month.
The TVL growth trend indicates that Manta Pacific’s on-chain economic activity has shown resilience at the infrastructure level. However, TVL is a lagging indicator, reflecting asset distribution rather than incremental sustainability. The impact of staking termination on on-chain capital retention will require further data to assess.
Looking at historical price trajectories, MANTA’s current price of $0.08010 represents a drop of over 98% from its all-time high of $4.04 (recorded on March 12, 2024). The current market cap of about $37.44 million marks a significant contraction from previous high valuations. In the short term, MANTA has seen positive movement, with gains of 17.09% over the past 7 days and 23.83% over the past 30 days, indicating some recent buying activity. However, over the past year, a decline of 74.22% suggests the token is still undergoing a lengthy process of value reassessment.
Sentiment Breakdown: Support, Skepticism, and Wait-and-See
The staking termination has sparked three main perspectives in the market.
Long-term Positive: Inflation Control Is the Right Strategic Choice
Supporters argue that inflationary staking rewards are essentially a "hidden tax"—the incremental returns to stakers are actually diluted from all non-staking holders (and even stakers themselves). Eliminating this mechanism fundamentally curbs passive supply growth for MANTA, restoring its scarcity.
At the same time, transitioning to a self-run sequencer means Manta Pacific will gain control over L2 network fee capture. In the Ethereum L2 ecosystem, sequencer revenue is a core economic driver. With a self-run sequencer, Manta Network can internalize this value, creating new avenues for token value capture.
Short-term Negative: Loss of Passive Income for Stakers
Skeptics point out that ending the staking program directly removes a passive income stream for MANTA holders. For users who relied on staking yields, this reduces MANTA’s appeal as an income-generating asset, potentially triggering some capital outflows in the short term.
Additionally, as staking is unwound, previously locked MANTA tokens will re-enter the circulating market. If these unstaked tokens are sold on secondary markets in a short timeframe, it could exert additional downward pressure on price.
Key Information Missing: Too Early to Draw Conclusions
Those taking a wait-and-see approach note that the most critical variables—whether the 2% annual inflation will be discontinued alongside staking, and the scale and distribution mechanism of sequencer revenue—have not yet been clarified. As such, it is premature to declare the move definitively positive or negative.
Industry Impact Analysis: A Paradigm Shift in L2 Economic Models
Manta Network’s strategic adjustment offers valuable insight beyond its own case for the Layer 2 sector.
L2 networks face a structural dilemma: tokens need incentive mechanisms to attract users and liquidity, but the sustainability of inflationary incentives is always questioned. Ethereum, post-merge, achieved supply-demand balance through EIP-1559’s burn mechanism and a relatively low issuance rate, but most L2s have yet to find a comparable equilibrium.
Manta’s approach—cutting inflationary incentives and shifting to self-run sequencer revenue—provides a new model for L2 token economics. The industry will closely watch this experiment: if Manta can sustain on-chain activity and asset retention after eliminating inflation rewards, it will demonstrate that "ecosystem growth driven by real network revenue, not token inflation" is viable. Conversely, if on-chain metrics decline sharply, the market may interpret this as a cautionary tale about incentive dependency.
For the broader crypto industry, Manta’s case reflects an emerging trend: more protocols are moving from "subsidized growth" toward "sustainable revenue models." This shift will profoundly impact how crypto projects are valued in the future—moving from a focus on TVL and user growth to a focus on real network revenue and value capture.
Conclusion
The termination of staking and sequencer independence by Manta Network represents a structural shift in its token economic model—from "inflation-driven growth" to "network revenue-driven value." For MANTA holders, the loss of staking rewards is immediately felt, but the real anchors for judgment are whether inflation truly drops to zero, whether sequencer revenue materializes, and whether this revenue is distributed to token holders.
In the increasingly competitive Layer 2 landscape of 2026, Manta’s choices mark an experiment worth tracking. The protocol is attempting to answer a question the entire industry faces: When incremental subsidies disappear, what is the true value anchor for a token?
