Multiple problems with Stake DAO token airdrop have left some users on the outside looking in

By Selena On Jan 22, 2021

In an introductory post about the project, Stake DAO gave the parameters for the SDT token distribution, dedicating 1.5% of the initial tokens to the active member of a long list of popular DeFi projects. Among those members, the two largest allocations of 39% and 45% respectively go to addresses that have donated to Round 8 of Gitcoin, as well as those participating in DAO governance for projects listed.

DeFi users are buzzing about receiving a valuable SDT airdrop

According to reports from social media, users participating in governance are eligible to receive 68.35 tokens, worth the equivalent of $ 500 before the SDT price dropped earlier today. This is also common practice because, after token distribution, users will quickly sell them.

The airdrop is reminiscent of the larger token distribution cases that took place throughout 2020, including Uniswap distributing nearly $ 1,400 of token value to exchange users, as well as the Badger DAO airdrop to designated addresses. provide liquidity to the wrapped BTC group.

Focusing on ecosystem governance participants and backers as early token recipients, however, is a bit of a novelty – and one comes with technical complexity. supplementary technique. Quentin Milne, one of Stake DAO’s 60 current collaborators, says those populations are targeted to attract more of DeFi’s most diligent users.

Milne stated:

“Taking part in protocol governance suggests that a user has a deeper level of involvement and more meaningful contribution to the industry than most. However, that doesn’t mean that they are more valued than any other active user or subscriber, so we wanted to include a wide range of the community and encourage them to use our protocol.”

However, the distribution did not go without a hitch. Since the UI glitch was fixed yesterday leading to no display statements and Gitcoin proponents who used privacy protection tools like zksnarks also can’t claim tokens.

If you have donated to the Gitcoin Round 8 using zksync, please bear with us. We are currently investigating! ??

— Stake DAO (@StakedaoHQ) January 21, 2021

Users are especially concerned about being abandoned due to some unique parameters of the airdrop: starting tomorrow at 22:37:13 GMT, the number of SDT tokens that can claim allocated per address will be. 10% off until 0 after 10 days.

Those who have successfully requested tokens are likely to receive more soon. Unclaimed tokens at the end of the distribution phase will be given to SDT holders involved in the management and provision of their tokens to the warehouses and liquidity repositories, meaning users cannot requests in the next ten days may be cut off even greater rewards.

Milne warned that there will be more opportunities for interested parties to earn tokens. The total distribution of 100 million SDT tokens allocates 40% to contributors during the two-year test period, but a full 60% to the community – of which only 1.5% was broadcast.

While they certainly weren’t helping, Milne also said that even without technical issues, implementation would be stressful.

Given where Stake DAO is headed, the rocky rollout may end up being just a short chapter in a much longer story

The Stake DAO website lists a range of existing and planned integration partners that allow staking, yield vaults, liquidity pooling, portfolio tracking and management, and single-transaction smart contract zaps. Vault strategies include input from developers on top projects like Yearn and BadgerDAO, and Milne has teased that some new features and products may be in the works.

He said:

“Planned products include fiat gateways, email logins, and new and exotic strategies such as exposure to bots using flash loan or liquidation. We will also be looking at adding a strategy in collaboration with BlackpoolHQ, the first hedge fund dedicated to NFTs, as well as cross-chain staking and vault strategies.”

It’s a bigger scheme that those lucky to receive SDT tokens can now join. The direction of the Stake DAO will ultimately be determined by SDT holders who will vote and contribute as the Stake DAO evolves over time.

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