Ether.fi announces airdrop, will adjust token allocation following community complaints
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Ether.fi, the largest liquid restaking protocol on Ethereum, has announced its governance token, ETHFI, and details of its airdrop beginning March 18.
Ether.fi also announced that the initial planned allocation would change following community feedback centered around TRON founder Justin Sun’s large allocation of tokens.
Ether.fi, the largest liquid restaking protocol on Ethereum, has announced plans for its upcoming airdrop of governance tokens.
The token, named ETHFI, will have a total supply of 1 billion tokens, with an initial circulating supply of 115.2 million tokens. The airdrop's first stage, entitled Season 1, will release 6% of the total token supply and covers behavior up to March 15. Season 2 will release 5% of the remaining tokens and covers behavior from March 15 to an unspecified future date. The remaining tokens will be split between investors, partnerships, core contributors, and the protocol's treasury, according to the protocol's tokenomics distribution.
Ether.fi gave a variety of criteria for airdrop eligibility, including holding eETH, referring a friend to the protocol, or participating in the protocol's Early Adopter Program. "Whale wallets" will need to wait 3 months in order to claim their tokens, while smaller wallets will be able to claim instantly, according to Ether.fi's announcement.
Following the announcement, community members noticed that Justin Sun, the controversial founder of TRON, would apparently receive nearly 3.5 million tokens out of the initial 60 million token allocation following a deposit of 20,000 eth two days ago, blockchain data shows.
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After widespread complaints on the part of Ether.fi's community members, Ether.Fi founder Mike Silagadze announced on Discord that more tokens would be airdropped to community members, with details to follow. Silagadze also defended Sun's allocation, writing, "Just because someone came in with a huge deposit doesn't mean we are going to change the rules on them and screw them over. We appreciate Justin's support and will honor the rules of the campaign we set out."
Powered by the restaking protocol EigenLayer, Ether.fi has over $3 billion in total value locked, according to crypto data platform DeFi Llama, a value over twice the size of its nearest competitor. Ether.Fi recently announced $27 million in venture funding raised, split between a SAFE and a Series A, The Block previously reported.
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© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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ABOUT AUTHOR
Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, zabrams@theblock.co.
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