ParaSwap launches governance-token airdrop

ParaSwap launches PSP governance token and a 150 million token airdrop.

ParaSwap, a liquidity aggregator across decentralized exchanges, issued the PSP governance token and launched an airdrop of 150 million tokens to build the community.

The total PSP supply will be 2 billion tokens, with 7.5% of the supply allocated for distribution among roughly 20,000 early accounts on the platform.

Holders will be able to stake them for additional yield, or vote on governance matters.

“More than half of the PSP supply is allocated to ecosystem and community development through initial distribution, incentives and funding for future development of the project,” the blog says.

Except for tokens obtained in the airdrop, a lock-up period of two to three and a half years has been set for all other holder categories.

As of writing, according to Etherscan data, the token had more than 2,840 holders, with nearly 6,500 transactions involving the token.

PSP price on Uniswap (v3) rose above $2, and trading volume exceeded $4.2 million, according to CoinGecko.

In a blog post, the ParaSwap team warned that making transactions with PSP is prohibited for residents of certain jurisdictions, including the United States and China.

Larry Cermak, vice president of research at an American publication, complained that he did not receive tokens in the airdrop, and suggested that the reason was not the ban:

“The majority of them are farming participants, including quite experienced ones. They use bots, sending tokens to thousands of wallets, or even tens of thousands. But they are not real active users,” he explained.

ParaSwap founder Munir Benchemled told CoinDesk in an interview that the team countered attempts to secure an outsized share of governance tokens by opening multiple accounts. Over two years, 1.3 million addresses interacted with the protocol.

“The vast majority of them are farming participants, including quite experienced ones. They use bots, sending tokens to thousands of wallets, or even tens of thousands. But they are not real active users,” he explained.

For the airdrop, the team selected only 0.015% of the total addresses.

The team originally declined to filter users by transaction volume or count — the influence of these factors was described as “minimal,” ParaSwap clarified. The exchange of wrapped assets—ETH for WETH, BNB for WBNB, and vice versa—was not considered.

Engagement was prioritised, filtering users step by step:

• In the first and largest group were those who used the DEX regularly since the protocol’s founding in 2019;
• In the second category were those whose wallets had a history of transactions on ParaSwap, on-chain activity with other projects/blockchains, and a non-zero wallet balance. The developers also excluded the path source address-ParaSwap-source address.
• In the third group, swaps with partner projects integrating ParaSwap were considered.

From 1.3 million users, 26,000 were selected, representing 80% of trading volume during the snapshot (taken on October 8). After final adjustments, the sample was reduced to 20,000. Users were awarded points based on compliance with several parameters, influencing the final airdrop.

ParaSwap noted that the distribution yielded “unusual traffic,” which caused problems for selected addresses in claiming tokens. The team urged readers to be understanding of the issues.

The price of the OMG Network (OMG) sidechain’s utility token fell more than 25% after the snapshot for the Boba Network airdrop.

Follow ForkLog on Twitter.