Without the Farcaster community, Degen would not have happened.

If you have used the Base chain recently, you must know that the most popular token on it is called $Degen, which today has a market cap of over $1.5 billion. When the Degen channel on Farcaster goes live in January 2024, it will allow users to reward quality content creators with $Degen. So far, there are over 83,000 holders and still growing rapidly. So, how did $Degen develop into a "golden dog" worth billions of dollars? This article will take you to explore together.

New airdrop gameplay (rewards)

Since January this year, $Degen has quickly become popular in the Farcaster community, where community members are rewarding their favorite high-quality content in the form of comments + DEGEN. Degen will receive a daily allowance based on the user's activity and engagement on Farcaster. The airdrop amount is calculated based on the total amount of rewards received from others each season, so users need to post high-quality content on Farcaster to receive rewards. Many active users have even reached the daily reward limit of thousands of dollars.

Unique Community

The price of $Degen rose with the popularity of the community, and the market value of Degen increased from 10 million to about 50 million. In turn, Degen also brought a wave of user growth to Farcaster.

Pingfeng’s description of Degen rewards is very apt:

Degen's mutual rewards make me feel like a group of people standing around a big bowl. Everyone can pick up a spoon of similar length and diameter to feed others, but not themselves. How much they can eat depends on their own rewards. The more they interact and reply to each other, the more rewards they get.

Angel round financing

In February, Degen announced the completion of an angel round of financing of 490.5 ETH (about 14.7 million US dollars), led by 1confirmation, with participation from Farcaster OG and other institutions. These funds will be used to develop the Degen ecosystem and community. It can be seen that a portion of the shares have been given to some community projects, such as Drakula, which also laid the foundation for the practicality of Degen.

Practicality

The decentralized TikTok Dracula on the Base chain was launched on March 14. Dracula was created by Alex Masmej, the issuer of the fan token $ALEX, and received investment from Paradigm.

The Dracula app uses degen as a token, thanks to a previous allowance of 10 million DEGEN from the Degen community (currently worth about $500,000). Users can use degen to purchase bloggers they like, similar to the gameplay of Friend tech. Users can also earn points by posting and watching short videos, sharing links, and purchasing creator tokens, and use BLOOD for rewards. In addition, similar to the NFT chip platform zora, community projects Bracket.Game and Rounds.wtf use degen as their native token. At this time, the market value of Degen has grown to about $70 million to $100 million. DegenCast will also use Degen to purchase creators' Keys.

Degen L3

Degen started its impressive journey on March 20. First, on March 29, Degen announced a partnership with Syndicate to develop L3 based on Base. The Gas token of Degen Chain is also DEGEN. As of now, Degen Chain has conducted more than 4 million transactions and has more than 100,000 wallets.

The second piece of news was that Farcaster’s parent company, Merkle Manufactory, raised funds at a valuation of $1 billion, led by the founder of Paradigm. Since Farcaster did not issue tokens, the community began to see this financing as a positive development for $Degen.

Since Degen launched L3, its entire valuation space has been compared with the main public chain, and it can even be said that $Degen has become the token of Base. The market value has soared like a rocket, soaring to 2 billion US dollars in a few days.

Degen's inspiration

Degen originated from the Farcaster community and is rooted in the Base chain. It can be said that it and Farcaster/Base complement each other. The price of Degen attracts users. Without the Farcaster community, Degen would not have been created. The Farcaster community project also provides an application scenario for Degen.

Degen's narrative has evolved from a community project's self-entertainment token to a core project's social utility token, and then to a public chain's Gas token. From 10 million to 100 million to 1 billion, each advancement represents an increase in valuation scale.

The rise of Degen also provides a path for the development of Farcaster community projects. Subsequent projects such as Drakula and DegenCast are worth looking forward to.


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