Bitcoin Layer-2 Airdrops Explode: How To Qualify For Free Tokens ($MERL)


(MENAFN- ValueWalk) The Bitcoin market has been a whirlwind of activity lately. The long-awaited approval of a Bitcoin exchange-traded fund (ETF) in the US sent shockwaves through the industry, and the price has responded in kind, reaching new all-time highs of over $63,000.

But the action isn't just on the main stage. Bitcoin's Layer 2 ecosystem, a network of protocols built on top of Bitcoin to address scalability and functionality limitations, is experiencing its own boom.

This surge is driven by a growing number of projects seeking to unlock the potential of DeFi (decentralized finance) on Bitcoin. Leading Layer 2 solutions like the Lightning Network (currently the largest with a TVL of $270 million), Stacks ($226 million, up a staggering 1,611% since October), and Rootstock ($170.5 million) are paving the way for a robust DeFi ecosystem on the Bitcoin blockchain.

source: defilama

Data from DeFi Llama paints a clear picture: Bitcoin's total value locked (TVL) has skyrocketed by a staggering 600% in just a few weeks, jumping from $310 million on February 8th to a whopping $2.15 billion today. This remarkable growth can be mainly attributed to the explosive popularity of a new player in the Layer 2 space: Merlin Chain.

Launched on February 8th, Merlin's Seal sent shockwaves through the DeFi world. Bitmap Tech reported a remarkable $543 million TVL from over 1 million depositors within 24 hours of the network's launch. Today, Merlin's Seal boasts a 71.6% share of Bitcoin's TVL, holding a staggering $1.58 billion.

In the next section, we'll delve deeper into the phenomenon of Merlin Chain and Merlin's Seal and explore what it means for the future of Bitcoin's Layer 2 ecosystem.

Table of Contents Show
  • Merlin Chain: A Bitcoin-Native L2 Solution Aims to Make Bitcoin“Fun Again”
  • Participating in the Merlin Seal Airdrop
  • How to Qualify for the Merlin Airdrop: Step-by-step Guide
  • Merlin Airdrop Alternatives Merlin Chain: A Bitcoin-Native L2 Solution Aims to Make Bitcoin“Fun Again”

    Merlin Chain entered the Bitcoin scene as a native Layer-2 ( L2 ) solution aiming to empower existing Bitcoin assets, protocols, and products. Developed by Bitmap Tech, the team behind the popular“Blue Box” collection on Ordinals, Merlin Chain seeks to unlock the full potential of Bitcoin by creating a robust, interoperable, and scalable ecosystem.

    Launching its mainnet this week, Merlin Chain promises innovation beyond fast and cheap transactions. It prioritizes native Bitcoin integration, allowing users to seamlessly switch between L1 and L2 using their existing Bitcoin wallets and conduct swaps with other tokens like stablecoins without needing an Ethereum Virtual Machine (EVM) wallet.

    This eliminates the complexity of managing multiple wallets and simplifies the user experience.

    Merlin Chain boasts extensive compatibility, supporting major Bitcoin L1 protocols like BRC-20 , BRC-420 , and Atomicals . All L1 inscriptions are also automatically whitelisted, enabling safe and affordable trading.

    Recognizing the challenge of attracting new users to the Bitcoin ecosystem, Merlin Chain bridges the gap between blockchains.

    By connecting to 40 Ethereum chains, users familiar with wallets like MetaMask and tokens like $ETH can interact with Merlin Chain using their existing tools and assets. This eliminates the technical hurdles of Bitcoin wallets and inscription processes, making the experience more user-friendly and accessible.

    Furthermore, Merlin Chain aims to democratize access to Bitcoin. They plan to integrate the first multi-chain inscription DApp, allowing users to inscribe assets on other layers with just a one-block wait time. Additionally, a launchpad on Merlin Chain will offer assets at a low price, making them accessible to a wider audience.

    Merlin Chain's commitment to decentralization is evident in their plan to distribute most of their governance tokens to the community.

    Participating in the Merlin Seal Airdrop

    The Merlin's Seal Airdrop presents a compelling opportunity to unlock substantial rewards and integrate yourself into a dynamic ecosystem. This airdrop transcends mere token distribution; it serves as a gateway to the captivating realm of Decentralized Finance (DeFi) powered by the innovative Merlin Chain.

    Merlin's Seal presents a unique avenue to acquire $MERL, the governance token of the Merlin Chain. By strategically staking your assets, you'll earn M-points, directly influencing your allocation from the enticing $MERL token pool.

    Launched recently, Merlin's Seal has garnered significant traction, surpassing a total value locked of $18.7 million within its first hour .

    This airdrop boasts extensive support for various assets, encompassing Bitcoin's native assets, Ethereum, stablecoins, and more. It presents a singular chance to claim a significant portion ( 20% ) of the total $MERL supply, translating to a remarkable 420 million tokens available for distribution.

    Security remains paramount. Merlin Chain safeguards your assets throughout the event by leveraging Cobo MPC co-managed Custody, ensuring secure and non-custodial handling.

    Regardless of your DeFi experience, whether seasoned veteran or newcomer, Merlin's Seal offers a seamless entry point. It presents the potential for acquiring valuable tokens and the opportunity to immerse yourself in the stimulating world of DeFi and connect with a vibrant community passionate about the intersection of blockchain technology and cutting-edge innovation.

    But the benefits extend beyond initial token acquisition! Participating in Merlin's Seal unlocks a treasure trove of additional advantages:

    • Acquire a substantial 20% of $MERL: This represents the largest staking reward available across all Layer 2 projects!
    • Unlock additional rewards: Contribute liquidity to Merlin Swap, the native DEX, and reap the associated benefits.
    • Explore the potential of DeFi: Engage with various DeFi protocols and generate profits from your participation.
    • Enjoy $ETH Native Yield: Stake your $ETH through StakeStone and earn additional rewards.

    With the promise of even more exciting rewards and expanded support for additional assets on the horizon, Merlin's Seal guarantees a truly rewarding experience.

    Proceed to the next section for a comprehensive, step-by-step guide to participating in Merlin's Seal Airdrop and securing your share of $MERL tokens.

    How to Qualify for the Merlin Airdrop: Step-by-step Guide Step 1: Secure Your Spot This is the first step to participate in the airdrop and earn $MERL , Merlin Chain's governance token.

    How to do it? Stake your desired crypto assets on Merlin's Seal using their official website.

    Step 2: Choose Your Asset Select which cryptocurrency you want to stake from the supported list.

    Merlin Chain currently supports a wide range of assets across various blockchains, including:

    Bitcoin: BTC, various BRC-20 tokens (ORDI, SATS, BTCS, etc.)
    Ethereum (Arbitrum): ETH, USDT, USDC
    zkFair: Not mentioned in the information provided
    Tron: Not mentioned in the information provided

    Step 3: Earn M-Points

    M-Points are the key to receiving $MERL tokens. The more M-Points you accumulate, the larger your share of the airdrop pool.

    By staking your chosen asset, you can automatically start earning M-Points daily.

    How M-Points are calculated:

    Every hour, a snapshot of your staked assets is taken, converting their value to $BTC.
    You then receive daily M-Points based on this formula: (Staked asset value in $BTC) * 10,000 (rounded down).

    For example, if you have 10 $ORDI staked, and the average daily price of $ORDI snapshots is $60, with the average $BTC snapshot price at $40,000 on that day, you'd receive: (10 * 60) / 40,000 = 0.015 $BTC
    This translates to 0.015 * 10,000 = 150 M-Points the next day.

    Step 4: Bonus Points for Liquidity Providers

    You can also earn additional M-Points by providing liquidity to Merlin Swap , the native decentralized exchange on Merlin Chain.

    Step 5: Track Your Progress

    Regularly check your M-Points balance to monitor your progress towards the airdrop.

    How to do it? The information on how to track your M-Points is not included in the provided information. You can check the official Merlin Chain website or their social media channels for further instructions.

    Additional Information:

    Supported wallets: UniSat Wallet, OKX Wallet, Bitget Wallet (Coming soon), Bybit Wallet (Coming soon), Metamask, and other EVM wallets (using Meson).
    M-Tokens (Coming soon): Merlin will create special tokens representing your staked assets, allowing for interaction with Merlin Chain's ecosystem while your original assets remain locked.
    Asset release: Staked assets will be released in April 2024 . You can use your M-Tokens to claim them back then.

    Remember: The final $MERL token distribution will be based on your M-Points compared to the total M-Points pool and the total $MERL amount allocated for the airdrop.

    By following these steps and understanding the process, you can increase your chances of receiving a larger share of the Merlin Airdrop and explore the exciting possibilities of the Merlin Chain ecosystem.

    Merlin Airdrop Alternatives

    More and more projects are utilizing 'free airdrops' to increase user engagement. One of these tokens is Smog . A meme coin on the Solana blockchain, users earn airdrop points in exchange for completing tasks.

    At the time of this writing, the market cap has exceeded $50M and over 600k quests were completed. Meme coins benefited from moderate gains following the recent BTC rally following the approval of a US spot Bitcoin ETF, which has gained the interest of large market players.

    Read more: SMOG Airdrop – How to get Solana's next big airdrop

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