DeFi
Solana project with $1 billion in deposits aims to reward ‘true believers’ with its airdrop – DL News
- Sanctum has announced plans to distribute its CLOUD token.
- The project co-founder said he wanted to avoid the “low float high FDV” tactics used by other projects.
- He also has a plan to reward “true believers” in the project rather than parachute farmers.
The Solana community is praising liquid staking protocol Sanctum after revealing details of its token launch and promising to abandon predatory tactics that have blighted other launches.
Sanctum said it would airdrop 10% of its tokens to early adopters, reserve another 30% for its community, and sell 8% via an on-chain public sale.
“In the past, projects started with so little and launched with crazy FDVs,” said FP Lee, co-founder of Sanctum. X spaces flow describing the launch. “We don’t want that. We want to start low and work our way up.
Lee was referring to a fully diluted valuation, or FDV, the total value of a token’s supply, including those locked or yet to be distributed, not just those in circulation.
Sanctum also said it previously sold 13% of its token to investors, a relatively small amount compared to other projects, and reserved 25% for team members.
“It’s well done and well balanced between the team, investors and the community,” said Kasper Vandeloock, CEO of crypto trading firm Musca Capital and advisor to several DeFi projects. DL News.
“This indicates that they are in it for the long term, and launching a token does not mean that they are trying to find exit liquidity.”
Defi users have pushed back against projects employing what many call predatory “low float, high FDV” token structures that benefit early-stage venture capitalists.
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Sanctum allows users to stake SOL tokens and receive fictitious tokens in return, which can be used in DeFi.
It differs from other liquid staking protocols by consolidating over 32 different liquid staking tokens into a single liquidity pool, providing traders with better prices when trading between them.
Sanctum has just finished 1 billion dollars in deposits, according to DefiLlama data.
Sanctum’s deposits have increased rapidly since announcing a points campaign earlier this year.
Sanctum CLOUD Token
Sanctum’s CLOUD token will allow holders to manage the protocol, similar to a decentralized autonomous organization – or DAO.
But it will also have other uses, such as as a collateral token that potential partners will have to stake.
Sanctum’s token plans are largely inspired by decentralized exchange aggregator Jupiter, said Yash Agarwal, a researcher at Superteam, a group that helps projects in the Solana ecosystem.
Jupiter allocated 40% of its token to its community via airdrops, and only a small amount to VCs.
“This is also unique compared to other Solana projects, which typically have 10-15% airdrops and 20-40% allocated to predatory VCs, launched at astronomical FDVs,” Agarwal said. DL News.
Sanctum will use the Jupiter Launchpad to conduct its token sale.
Several Solana projects have chosen to launch tokens via the launchpad as an alternative to launching via crypto exchanges.
“Centralized exchanges almost always charge large listing fees: 1%, 3%, 10% of the total supply,” FP Lee said in its report. Message announcing Sanctum’s CLOUD token. “I would much rather these tokens go back to the Sanctum community.”
However, Lee said, Sanctum is donating a comparable amount – 1% of the token supply – to LFG, the organization that runs the launchpad.
Additionally, the initial circulating supply of CLOUD, while larger than many recent airdrops, is still small.
The leading decentralized exchange, Uniswap, airdropped 60% of its UNI token to early adopters in 2020, while the Ethereum Name Service airdropped 25% of its ENS token in 2022.
“True Believers”
Sanctum also said it wanted to improve on previous airdrops by separating airdrop farmers from “true believers.”
Sanctum’s Lee said he wanted to keep details of the project plans secret to avoid giving a head start to those trying to game the system.
He said, however, that Sanctum could delay airdrop requests or reward recipients who choose to delay their request with more tokens.
Tim Craig is a DeFi correspondent at DL News. Do you have any advice? Send him an email to tim@dlnews.com.