The team behind the decentralized NFT exchange SudoSwap outlined the initial distribution of the SUDO governance token ahead of the upcoming airdrop.
This post outlines the distribution of SUDO, the governance token of the sudoAMM protocol. https://t.co/aGwNWSDaB6
NOTE THAT THE SUDO TOKEN GOVERNING THE SUDOSWAP PROTOCOL HAS NOT YET BEEN DEPLOYED. PLEASE EXERCISE CAUTION
— sudoswap (@sudoswap) September 2, 2022
Initial issuance will total 60 million SUDO. Its distribution will be as follows:
- Owners of the platform’s XMON utility token — 25.12 million (41.9%);
- 0xmons NFT holders — 0.9 million (1.5%);
- sudoAMM protocol liquidity providers as a retrospective airdrop — 0.9 million (1.5%);
- Project treasury — 15.08 million (25.1%);
- Initial team members — 9 million (15%);
- SudoRandom Labs as the main protocol developer — 9 million (15%).
For the two final categories, a three-year vesting period with a one-year cliff applies.
XMON holders wishing to participate in the airdrop must lock their assets for three months. During this period the token will maintain full functionality except for transfer. In this case the distribution will be made at a rate of 10,000 SUDO for each locked XMON.
Unclaimed tokens by this group will go to the treasury. The treasury will be governed by SUDO holders. It is envisaged that its initial uses will include grants for future participants, integrations, tools, support for bounty programmes, liquidity and more.
If necessary, the governance could issue up to an additional 10% of the total SUDO supply to the treasury each year.
Initially, the governance token will not be transferable. To unlock this ability later, a corresponding proposal may be put to a vote. SudoSwap explained the limitation as necessary to ensure that token holders participate in governance to a sufficient degree.
“Note that the governance token for the SudoSwap protocol has not yet been deployed. Please exercise caution,” the team warned users.
In the wake of the announcement, the XMON price surged from around $28,700 to $44,289 — more than 50%. After a correction, the asset trades near $38,300 (Uniswap).
In July, Uniswap announced the launch on its platform of an NFT marketplace with full SudoSwap support.
Earlier, the DeFi platform also showed interest in lending against collateral backed by collectible assets.
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