This article comes from The Defiant, the original author: Owen Fernau, compiled by Odaily translator Katie Koo.
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Arbitrum airdrop gives 'shaky' crypto project 'a lifeline'
On the evening of March 21, Arbitrum announced the details of the DAO airdrop, saying that "one of the core principles of the airdrop is to reach Arbitrum's sub-communities." Only projects with DAO and community treasury on Arbitrum are eligible to participate in this distribution. Coins were distributed to the DAO's treasury (rather than just individual wallets), thus making airdrop history. Of the 1.3 billion tokens airdropped, 8.9% were distributed to 137 DAOs.
The Arbitrum airdrop is the latest example of how blockchain projects are using tokens to incentivize and reward their users and ecosystems. While individual users are often the primary claimants of token distributions outside of project teams and investors, the Arbitrum airdrop giving the DAO "a seat" should increase the diversity of governance participants and incentivize developers to continue building on the network. on build. The Arbitrum airdrop strategy also provides additional funding for cryptocurrency projects as the market gradually recovers from last year’s 70% plunge.
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What is the trend of tokens for projects that have received airdrops?
Arbitrum allocates 1.13% of its total token supply to the Ecosystem DAO. By airdrop size, the top 10 DAO recipients of ARBs received over 44 million ARBs, which equates to $56 million at recent prices. The top two received more than $10 million in ARBs. The share of tokens received by DAOs as a percentage of total project funding varies widely, ranging from less than 1% to 10%-40% in most cases.
For example, CAP Finance is a decentralized exchange for perpetual futures contracts. It is worth noting that the ARB value it obtains is three times the amount of funds in its treasury. The project has $1.5 million in funding, but it received a $3.7 million ARB airdrop based on prices on March 29. Since Arbitrum’s announcement on March 16, the project’s CAP token has responded well, gaining roughly 64% since then.Gaming ecosystem Treasure DAO received 8 million ARBs, one of the two largest grants. Even counting the project’s own 26.5 million tokens, the assets controlled by the air investment fund have increased by more than 38%. But Treasure DAO token MAGIC is actually down about 6% since the ARB airdrop was announced.
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How do projects handle this "windfall"?
Most of the teams contacted by The Defiant said it was "too early to make a decision".
Radiant Capital
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Radiant Capital, a full-chain lending protocol on Arbitrum, is considering distributing tokens as an additional incentive to use its platform. The protocol received 3.34 million ARBs, worth nearly $4 million as of March 28, the seventh-largest amount among airdropped DAOs.
As with other projects receiving ARBs, internal debate ensued. DAO members wondered whether selling tokens prematurely would be a mistake, how to earn yield on it, and what specific behaviors would be incentivized with airdropped tokens.That means there could be additional selling pressure as another 1.13% of the token supply enters the market.
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Vesta protocol uses ARB as a potential reward
Vesta made a forum proposal that explored several options. The first is to use ARB as a potential reward to incentivize users who provide liquidity to the VST-ARB trading pair. VST is Vesta's stablecoin. Another avenue is to become an Arbitrum representative, which means not only becoming an active voter in protocol governance, but also soliciting voting rights from other ARB holders.
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Voting on Arbitrum for TreasureDAO
John Patten said on Discord: "8 million ARB is a lot, but no matter how you distribute it, it will not last forever. Its most lasting impact is voting for Treasure as a single "economic community", expressed in the Arbitrum DAO own voice, and speak up for Treasure."
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Aave's "Temperature Check" proposal
The main options are to reserve tokens for participation in governance, to use tokens as part of a liquidity mining program to incentivize the use of Aave in Arbitrum deployments, and to swap tokens for stablecoins to augment Aave DAO treasury funds .
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Summarize
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