In Brief:
- PSP token was launched today as an airdrop to “active users” by ParaSwap.
- Only about 20,000 of ParaSwap’s 1.4 million members received the 150 million PSP tokens.
- PSP token holders will be able to use tokens for staking in ParaSwapPools and for voting on governance decisions of the protocol.
Decentralized Exchange ParaSwap released its native token PSP token on 15th November. The firm is airdropping 150 million PSP (7.5 percent of total supply) to “active users” of the network, while some users have had trouble getting their tokens.
Currently the token is available for 20,000 Ethereum addresses and allows users to invest in liquidity pools in return for platform incentives. It additionally allows participation in the governance of the newly formed decentralized autonomous organisation (DAO) as per founder Mounir Benchemled.
Using on-chain data, the ParaSwap team removed ineligible users, requiring them to pass through more than one “harsh” check. PSP token holders will be able to use tokens for staking in ParaSwapPools as well as for voting on governance decisions of the protocol.
Benchemled also added by saying, “we are excited to introduce a brand new model that rewards both stakers and market makers and makes Paraswap a better exchange platform for users, Dapps and protocols.”
He further suggested creating a fantastic product and reaching maximum users, and finally to start tokenization and decentralization.
A total of 6% of the entire PSP supply will be dedicated to reward market makers’ involvement. ParaSwap’s core team will receive 17.6% while 51% will remain in its ecosystem.
The firm expects the relationship between ParaSwap and the ParaSwapPool market makers as one of its major progress. Also, from that point of view, market makers who have obtained PSP tokens are subjected to heavy lockups for a minimum of 6 months.
Many ineligible users expressed their unhappiness on social media after ParaSwap revealed on Twitter yesterday that certain qualified addresses were unable to obtain PSP. TokenBrice responded by stating that all ParaSwap users, regardless of whether or not they acquired a PSP token via the drop, have access to the protocol’s features.
This Saturday the first ParaSwap community call will take place. Since its launch the PSP token has dropped roughly 20% today. Also over 10 million PSP tokens are staked at a current estimated yield of over 600%.
Earlier this month, ENS also launched governance tokens for voting rights that was organized by DAO.
