December 4, 2024

Free distribution farmers are still feeling nostalgic after the successful launch of Hyperliquid, which allocated 31% of its HYPE tokens to the community on day one. Its HYPE token surged 125% after launch, with a market cap of $1.5 billion, and shows no signs of stopping.

With its valuation up over 514% since launch and a current market cap of over $4.2 billion, Hyperliquid has sparked speculation about projects that could replicate its success. Given the token’s economics and community engagement strategies, here’s a look at potential contenders poised to follow in Hyperliquid’s footsteps.

Grass

Grass gained attention with its first free distribution on Solana, where it distributed 10% of the total token supply during its first phase. Participants earned tokens by contributing computing power and interacting with the network.

For the second phase, Grass plans to allocate 17% of its tokens to the community. It encourages active user participation in building a decentralized map of the Internet. With over 2 million active users globally, Grass continues to position itself as a leader in decentralized infrastructure projects.

LayerZero

LayerZero, a cross-chain protocol, allows blockchains to communicate directly with lightweight, reliable message passing. Popular among top-performing blockchain bridges, LayerZero has set aside its initial allocation of 15% of the ZRO token supply for future incentivized activities.

On July 19, Brian Pellegrino, CEO of the LayerZero Foundation, revealed that LayerZero users and developers will receive 23.8% of the token supply. According to an official announcement, unclaimed tokens will be reallocated as of September 20.

Analysts recommend regularly engaging with LayerZero’s bridge services and participating in its Discord role program, which reserves an additional 5 million tokens for the community. Participants can improve their eligibility for the LayerZero free distribution by using supported bridges, DEXes, and lending protocols while staying informed through the protocol’s social media.

Wormhole

Wormhole, a multi-chain interaction protocol, introduced an early free distribution strategy that proved profitable for active users. Although the project only reserves 6% of its W token supply for community rewards, its focus on rewarding high-value transactions suggests it has room to grow as adoption increases.

According to the Wormhole Token Economics document, the project released 11%, or 1,100,000,000 W, into TGE and the remaining 6% four months after TGE, which is in line with the project's token release schedule.

The project has opened up the additional 6% allocated to the community and is awaiting distribution at any time. They have not announced anything, but the bridge across Wormhall is a positive step.

“None of the token supply allocated to Guardian will be unlocked in TGE and those tokens are subject to the token release schedule,” Wormhall added.

Gradient Network

The Gradient Network is built on Solana and aims to scale cloud computing. To achieve this, it offers edge computing via a decentralized network of devices to process data. Users can now download the Gradient browser extension and earn rewards by setting up a node.

The project is led by Yuan Zhao, who previously served as the head of growth at the Helium Foundation. Gradient Network has received backing from Multicoin Capital, Pantera Capital, and Sequoia Capital.

Gradient Network presents itself as a Solana-adjacent project, targeting users who missed out on Grass, even though it is still in its nascent stage (Season 0). Although no specific token allocation has been announced, Gradient’s early-stage activities position it as a speculative opportunity for active participants.

Arkham

Arkham recently transitioned from blockchain services to building a permanent exchange. Its token distribution strategy mimics that of Hyperliquid, rewarding users who trade and refer new participants. With a promising start, its second phase is expected to mirror the impact of its initial distribution, with only 7% of the 37% allocated to the community having been distributed.

Kento

Describing itself as the first “Security Layer-2” token, Kinto has caught the attention of Binance Research. Its TGE is pegged to hit $100 million in total value locked (TVL). While its timeline is behind others, its structured approach to deposit-based rewards makes it a worthy candidate.

These projects vary in their strategies for token distribution and community engagement. However, their efforts to distribute ownership and incentivize active participation align with Hyperliquid’s success model. Users looking to take advantage of these opportunities will need to keep a close eye on their updates, token economy, and participation requirements.