Decentralized autonomous group (DAO) OpenDAO launched on Christmas Eve with an airdrop focusing on customers of the most important non-fungible token (NFT) market OpenSea – and an enormous rise of the DAO’s token was adopted by a correction.
The mission distributed free SOS tokens for anybody who had ever spent cash on OpenSea based mostly on their funding quantity. Neither the OpenDAO mission nor the SOS token are formally certain to OpenSea. Nonetheless, the coin skyrocketed inside the first day of its debut, gaining 489%, in keeping with information by CoinGecko.
Nevertheless, the coin has since corrected sharply. At 8:33 UTC on Monday morning, SOS is down by 23.7% over the past 24 hours.
Moreover, at its peak, SOS reached a market capitalization of over USD 340m, which has since plunged to round USD 252m.
The mission has additionally witnessed notable development. Throughout the first two days, OpenDAO’s Discord server onboarded over 50,000 members, whereas its official Twitter account has garnered round 120,000 followers. Furthermore, in keeping with Etherscan data, SOS at the moment has over 203,000 holders.
In the meantime, the airdrop constituted a 50% portion of the SOS token provide. “The distribution relies on the whole variety of transactions (30% weight) and transaction quantity on ETH, DAI & USDC (70% weight) on OpenSea,” the mission’s web site detailed, including that customers have till June 30, 2022, to assert their tokens.
One other 20% of the SOS token provide is allotted to OpenDAO. The mission’s web site claims that it could use its treasury tokens to “compensate verified rip-off victims on OpenSea, help rising artists and their unique work, help NFT communities, help artwork preservation, and developer grant for taking part in SOS ecosystem.”
Token airdrops are a typical apply amongst decentralized finance (DeFi) tasks that need to transfer towards decentralization and reward their early supporters by giving them a portion of the governance token – therefore, permitting them to vote on choices associated to the protocol, thus shaping it. Whereas airdrops are largely considered free cash, they’re a useful device for tasks as they permit them to search out their superb demographic, amongst different issues.
With out airdrops, the tasks would have a tricky time distributing their tokens amongst their core contributors. As a substitute, speculators and short-term traders, who do not—or cannot—work to enhance the mission, would purchase the tokens, which explains why it’s extra probably that tasks will preserve airdropping within the crypto house.
____
– DeFi Tendencies in 2022: Rising Curiosity, Regulation & New Roles for DAOs, DEXes, NFTs, and Gaming
– Exec Desires Meta to Look to NFT, DAO and Blockchain Growth Subsequent Yr – Report
– Fei-Rari Union Accepted, Marking One the Largest DAO Mergers in DeFi Historical past
– DAOs, Token Holders Might Face New Tax Liabilities, PwC Report Warns
