Solana DEX has joined the 100 million token airdrop. Drift Protocol is therefore promoting a similar airdrop and is developing a token-based governance.
Among the surprises of the long-awaited announcement emerges MetaDAO, whose futarchy technology has been partially integrated into Drift.
Solana DEX switches to a 100 million token airdrop
As anticipated, Drift Protocol, the decentralized exchange (DEX) based on Solana, is preparing to launch its governance token, DRIFT, distributing it to users within a few weeks.
The information is reported on the Drift website and from informed sources on the issue.
The new token follows a three-month points program, attracting traders, borrowers, lenders, and airdrop farmers on Drift, one of the leading platforms for trading perpetuals in Solana DeFi.
However, protocol contributors indicate that most of the 100 million tokens allocated for the airdrop will be assigned to users who are part of Drift’s long-standing community.
We remind you that airdrops, common in the world of cryptocurrencies, consist of the free distribution of tokens or coins to individuals.
Drift is the latest piece of the financial infrastructure on Solana that is committed to decentralizing its operations.
It does this by creating a token that allows its holders to participate in key decisions of the exchange, such as selecting which tokens to list or software updates.
In the context of this airdrop, 10% of the entire supply of DRIFT will be allocated to users.
Venture capital investors will receive a significantly higher percentage of DRIFT, equal to 22%.
Polychain Capital and Multicoin Capital, among others, have invested over 25 million dollars in the development of the protocol since 2021, along with several angel investors, including Solana founders Anatoly Yakovenko and Raj Gokal.
43% of the tokens will be allocated to the “ecosystem development”, which may include rewards for trading, liquidity incentives, and future airdrops. 25% of the tokens will be reserved for payments for the “protocol development” to Drift’s collaborators, as indicated on Drift’s website.
Drift Protocol: the future of cryptocurrency trading on Solana
The developers of the Drift protocol predict that the trading service will become a reference point for cryptocurrency investors on Solana.
Their main product offers perpetual trading for price speculators on cryptocurrencies long and short with leverage up to 20x.
Drift also offers spot trading and a range of financial instruments that provide investors with exposure to high-risk, high-return games.
Their latest product allows traders to bet on tokens that have not yet been launched, although the service for the DRIFT token will not be available for legal reasons.
Cindy Leow, senior collaborator, stated in an interview that the goal has never been simply to be a DEX for disruptors.
Drift Labs, the parent company developing the protocol, has invested over two years, tens of millions of dollars, and the work of 25 employees to build the entire value stack of DeFi.
During last week’s cryptocurrency market crash, some of these aspects were put to the test.
The lenders of the Drift insurance fund have seen socialized losses of $11,600 during the largest multi-day cryptocurrency liquidation event since November 2021.
However, the insurance fund held up, as expected as an insurance, in the midst of the wave of liquidations and bankruptcies that accompanied the sudden collapse of prices.
During the market crash, Leow stated that “on Friday morning we had 200 million dollars of open interests and 10% was liquidated.”
He described this event as the largest market movement in a single day since December. However, he noted that “the liquidations are going well.”