$POWER Token fAirdrop Announcement
Airdrops are a common growth tactic for launching decentralized applications (dApps). At first, airdrops were a way for nascent dApps to crowd-fund bootstrapped liquidity and cultivate a community.
Unfortunately, airdrops are now easily exploited by bad actors whose actions undermine the project’s success – either in the near term through mercenary ‘pump-and-dump’ tactics, or in the long term though bad actors becoming embedded in communities and manipulating votes to their advantage.
Exploited airdrops are one of many challenges DAO success, and they amplify the harm that voter collusion, voter apathy and outright fraud can inflict on the communities and projects they mean to serve.
Power Protocol aims to solve good governance, and it's going to start even before it starts. That’s why the $POWER token airdrop is designed to minimize malicious opportunistic actors and maximize community decentralization.
What is a ‘fAirdrop’?
There will only every be 1,000,000 $POWER tokens minted. On genesis, Power DAO will allocate 90% of the total supply (900,000) of $POWER for a series of airdrops to maximize decentralization and widely distribute governance authority to the community.
The remaining 10% of the total supply (100,000) of $POWER will never be distributed and will remain in the Power DAO treasury to be used for rewards, incentives, buybacks and Special Purpose DAO (SP-DAO) grants as decided by the Power DAO community.
Find a full description of Power DAO and Special Purpose DAOs in the Power Protocol vision white paper here.
$POWER’s allocation model is simple to ensure the community has maximum control over its evolving utility. Rather than the full amount of allocated tokens being distributed in a single airdrop to recipients determined by the core team, the airdrop will be executed in waves, with two distinct phases:
- Phase 1: A single ‘Genesis Airdrop’ of 1% of the total supply (10,000) of $POWER sent to the existing Waves community
- Phase 2: An arbitrary number of ‘Community Airdrops’ of a similar size, of staked $POWER, sent to recipients from any blockchain ecosystem, as determined by the Power DAO community over time.
As the community of $POWER holders grows, more people will contribute to the decisions of who will receive the remaining $POWER supply. This design will distribute $POWER not only across as many individuals as possible, but across time as well.
As more communities are created on – or existing DAOs migrate on to – Power Protocol, the more decentralized $POWER will become. The Genesis Airdrop will necessarily have minimal decentralization while each subsequent Community Airdrop will increase decentralization of the community and distribute decision-making power.
Phase 1: The Power DAO Genesis Airdrop
The Genesis Airdrop will consist of of 10,000 unstaked $POWER tokens. All Waves products with WAVES locked in them will receive an airdrop of $POWER. The initial minimum quorum for votes during Phase 1 is 20% of all $POWER holders. A very low quorum gives means even more voting power to early adopters with strong conviction about how Power DAO should evolve. The minimum quorum may then be adjusted by the community at a later date.
WAVES token holders will receive 90% (or 9,000) and WCT token holders will receive 10% (or 1,000) $POWER from the Genesis Airdrop token allocation. Airdrop will be sent to users with wallets on the Waves blockchain holding WAVES, USDN or WCT. A quadratic formula will be used to send $POWER tokens proportionate to the balance of qualifying wallets with at least one outgoing transaction in the last month. Any WAVES tokens locked in LP tokens are included in this group. Liquidity pools with staked WAVES do NOT need to be withdrawn.
What If My Tokens Are On A CEX?
Since it’s impossible to airdrop to cold storage wallets controlled by centralized exchanges (CEX), an initial Snapshot will be taken of all Waves addresses holding WAVES, USDN or WCT after February 5, 2023 – few days before the airdrop.
Any user that holds WAVES or USDN in a CEX cold storage wallet must then withdraw their holdings from the custodial wallet within two weeks of the publication of this post. Any pre-existing address that withdrew WAVES from a CEX’s cold wallet prior to the airdop will qualify to receive $POWER.
Phase 2: Sequential Community Airdrops
Once the genesis community is formed and Power DAO is launched, any existing $POWER holder may propose a community or group of on-chain wallets to receive a Community Airdrop of $POWER. During this phase, community members from any blockchain ecosystem may be invited to join Power DAO and build or migrate existing communities to SP-DAO’s built on the Power Protocol.
The recommended allocation of $POWER distributed in each Community Airdrop is 1% of the remaining total supply of $POWER at the time of the proposal.
Unlike the Genesis Airdrop, all Community Airdrops will send staked $POWER tokens to recipients. Sending staked $POWER that will be unlocked after the community decides the conditions for unlocking staked $POWER to protect the integrity of the greater community, and optimize for attracting community members that share the values outlined in the Power Protocol white paper.
What does an awesome candidate to recieve a Community Airdrop of $POWER look like?
- Proven track record of community engagement and active participation in governance.
- Clear and well-defined goals and plans for the use of the $POWER airdrop.
- Strong leadership and a dedicated team to oversee the project.
- Transparency and accountability in the management of the airdrop.
- A clear and transparent process for evaluating and distributing the airdrop.
- Evidence of community support and buy-in for Power Protocol.
Staked $POWER tokens will have Power DAO voting functionality and will have full utility immediately.
Evolved Airdrop, Evolved Governance
The purpose of Power Protocol and the Power DAO is to use the unique capabilities of blockchain technology to solve chronic governance issues that hinder or distract groups of people from achieving an agreed upon shared mission and from building excellent decentralized applications that maximize stakeholder value.
The $POWER airdrop has been carefully designed to maintain scarcity of $POWER over time, which should encourage price discovery, and $POWER price appreciation. As the price of $POWER appreciates, Power DAO and SP-DAO Sentinel and Stakeholder rewards will become more valuable and sought after, and competition for achieving KPIs will increase, attracting the most talented and high-performing contributors to meet the needs of Power Protocol communities.
If you are already part of a DAO that struggles with accountability and meritocratic governance, don’t dismay. Join the Power DAO Telegram chat, follow the Power DAO Twitter, or reach out to our team directly to see if your team is a good candidate for one of the first Community Airdrops.