Effective February 1, Magic Eden will allocate 15% of its total revenue to support the ME token ecosystem. Half of these funds will be used for market buybacks, while the other half will fund USDC payouts for stakers. Co-founder Jack Lu linked this decision to a growing speculation supercycle where finance merges with the entertainment industry.
New Ecosystem Economics
The updated profit distribution mechanics replace the previous buyback system that relied solely on marketplace fees. Now, revenue from all company products — including NFTs, gaming mints, and prediction markets — will contribute to the pool.
Staking rewards depend directly on the volume of locked assets and the duration of the stake. Lu estimates that the NFT division generated approximately $24 M in revenue during 2025. Despite general stagnation in the sector, the platform maintained steady financial performance and is now expanding the utility of its token.
Development Plans
The team is planning a large-scale expansion into the entertainment segment. This quarter, Lu announced the launch of DiceyHQ, a crypto casino and betting platform. The service will uniquely allow any user to act as the house and accept bets.
“Betting is the second-fastest growing industry in the US after AI. Gaming and gambling are converging, and Magic Eden intends to lead in this niche. The ME token will bridge asset trading with new formats of crypto entertainment,” he stated.
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