Sanctum's unique "Dynamic Airdrop" explains the details of the airdrop and valuation

Original title: "Detailed explanation of Sanctum airdrop rules, will "dynamic airdrop" become a future trend?"

Original author: Azuma, Odaily Planet Daily

At 23:00 on July 16, Beijing time, Solana ecosystem liquidity pledge layer project Sanctum officially opened the airdrop claim query window, and plans to officially open airdrop claims through Jupiter LFG Launchpad at 23:00 on July 18.

As the top project in the second phase of Jupiter LFG Launchpad voting projects, Sanctum has always been highly concerned by the community in the Solana ecosystem. In the past few months, Sanctum has achieved rapid progress in data with the help of the first quarter points event Sanctum Wonderland S-1. As of the time of writing, the TVL is temporarily reported at US$910 million, making it the fifth DeFi protocol in the Solana ecosystem.

Project Analysis

In April, Sanctum announced the completion of its seed round of extended financing, led by Dragonfly, and participated by Sequoia, Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, Marin Digital Ventures, etc. Although the amount of this round of financing was not disclosed, Sanctum revealed that the total financing of the project has reached US$6.1 million.

Unlike conventional liquidity staking protocols, what Sanctum is doing is more like helping Solana build a more unified liquidity staking paradigm to solve the liquidity fragmentation problem of major liquidity staking tokens (LST, such as Sanctum's own INF and other tokens such as jitoSOL, mSOL, bSOL, etc.) in the current Solana ecosystem.

By building a unified liquidity layer around the liquidity staking scenario, Sanctum can use multiple modules such as Reserve (supporting instant unstaking services for all LSTs), Router (supporting mutual conversion between two LSTs that usually have no transaction path), and Infinity (supporting mutual conversion between all LSTs) to help users achieve extremely fast and lossless redemption, or mutual conversion between major LSTs with extremely low wear and tear.

Token Economic Model

As early as early June, Sanctum's founder FP Lee disclosed the project's preliminary token economic model, but then made some fine-tuning in the distribution of details - lowering the strategic reserve share and increasing the LFG Launch share.

Sanctum's protocol token will be called CLOUD (the token contract address was determined last night: CLoUDKc4Ane7HeQcPpE3YHnznRxhMimJ4MyaUqyHFzAu). In addition to basic governance utility, FP Lee also mentioned that potential partners may need CLOUD to qualify for Sanctum's verification program, which also adds a certain practical value to CLOUD.

The total supply of CLOUD will be 1 billion, with the following distribution:

· Community Reserve 30%:Community reserves should be used strategically to expand Sanctum's market share, and the community will ultimately decide how to use this part of the reserve;

· Strategic Reserve 11%:The team will use this part of the reserve to develop the Sanctum ecosystem, such as future acquisitions, strategic investments, ecological partners, donation programs, market making, etc.

· Team 25%:Locked for one year, and then released linearly over 24 months.

· Investors 13%:Sanctum has sold some tokens at valuations of 50 million and 60 million in the past, most of which were sold in 2021. These tokens will also be locked for one year and then released linearly over 24 months.

· Initial Airdrop 10%:Will be distributed to the community at the CLOUD TGE.

· LFG Launch 10%:Used to inject initial liquidity into CLOUD's Launchpad on Jupiter.

· LFG Donates 1%: This portion of the share will be donated to Jupiter LFG. According to past practice, Jupiter will generally airdrop to LFG voting participants.

From the circulation situation, CLOUD can achieve a maximum initial circulation rate of 20% at the beginning of TGE, including 10% initial airdrop share and 10% LFG Launch share, but unsold tokens in Jupiter Launchpad will be transferred back to the strategic reserve.

Points Activities and Airdrop Scope

Previously, Sanctum has announced that the initial airdrop will be mainly distributed to users participating in the Wonderland S-1 event.

According to Sanctum's official disclosure, the S-1 event attracted a total of 314,367 addresses to participate, with a total accumulated points of 2.5 trillion. After eliminating 61,181 suspected witch addresses, it was finally determined that a total of 108,185 Profiles (a DID product launched by Sanctum, one Profile can correspond to multiple addresses) were eligible for airdrops.

FP Lee had previously confirmed that Sanctum will continue to launch other rounds of activities for subsequent airdrop distribution. FP Lee's original plan was to launch S-2 immediately after the S-1 event ended, but later in order to give users a different participation experience, it was decided to postpone the launch for a richer design. As for the specific launch time of S-2, there is no specific information for the time being, but it can be confirmed that it will be after TGE.

Dynamic Airdrop Mechanism

Sanctum has put a lot of effort into the design of this CLOUD airdrop, so much so that many users are still not sure how much they can get.

Sanctum officials have also emphasized that "the current query interface does not show the full amount, but the amount that can be claimed immediately", because Sanctum has adopted an original classification and dynamic airdrop mechanism.

Apart from the airdrop that Jupiter will use its own share to distribute to its ASR users (expected to be carried out in October), Sanctum has divided this airdrop into two categories - Capital and Earnestness, each of which will be allocated 50 million CLOUD, totaling 100 million CLOUD.

· Capital shares will be distributed to all users who participated in the Wonderland S-1 event, and the amount of airdrops will be proportional to the amount of points accumulated by the user (each Cupcake obtained by attracting new users is equal to 20,000 points), but there is a minimum threshold requirement of 20,000 points, and users need to apply for it by registering Sanctum Profiles.

· Earnestness shares will be distributed to users who truly understand, explain, and promote Sanctum on social media. For this purpose, the team proactively browsed millions of posts on Telegram, Discord, Twitter, Youtube and other websites as of July 1, and screened out more than 2,000 "sincere contributors" (specific distribution is shown in the table below). It is worth mentioning that Sanctum connects addresses to social media accounts through Sanctum Profiles. Since some qualified social media accounts have not yet registered Sanctum Profiles, their shares will be temporarily reserved, and the replacement rules will be released later.

Both Capital and Earnestness shares use a dynamic amount mechanism, which means that the amount of tokens that users can get varies depending on how early or late they claim - in simple terms, the later you claim, the more coins you get.

However, the time requirements for Capital and Earnestness shares are different: For Capital shares, if you want to claim all 100%, you need to wait 14 days; for Earnestness shares, if you want to claim all 100%, you need to wait 180 days.

Eligible users can claim their airdrop rewards at any time before April 14, 2025, but claiming in advance means that users will give up the remaining shares, which will be returned to the community reserve for future airdrops and community plans.

Idealism and Reality

From the early high-profile announcement that "no listing fees will be paid to any CEX" to the complex airdrop design this time, Sanctum seems to have always been filled with a kind of idealism, but this in turn has also attracted many seemingly unnecessary controversies.

As far as this airdrop is concerned, the controversy mainly focuses on two aspects.

The first is the controversy over the transparency and fairness of the airdrop distribution, especially the controversy over the Earnestness part. Sanctum's original intention was to screen out real community communication contributions as much as possible through active audits to avoid excessive community fatigue or witch proliferation caused by the adoption of task models (such as Zealy, Galxe, etc.), but this inevitably creates a certain degree of opacity - are there objective standards for active audits? Is it reasonable to allocate 50 million tokens to thousands of Earnestness qualified addresses? Is this unfair to Capital qualified addresses that have deposited real money? These questions have not been effectively answered.

Second, there is the controversy over dynamic amounts. Sanctum’s original intention is not difficult to guess, that is, it hopes to dilute the early airdrop selling pressure through the mechanism of dynamic game, so that the market has more time to adjust the supply and demand of TGE tokens in the early stage, but this also brings additional complexity to the airdrop. Especially at a time when the market is increasingly nostalgic for the "simple is justice" of Uniswap airdrops, this design will inevitably attract some resistance.

Valuation expectations

Finally, let’s talk about a topic that users are most concerned about-how much should CLOUD be valued?

Currently, Drift, a contract trading platform on Solana, has launched a pre-market trading contract for CLOUD, which is now quoted at 0.3147 USDT, corresponding to an FDV of approximately US$310 million.

In addition, judging from the liquidity distribution on Jupiter LFG Launchpad, the upper limit of the market-making price is also set at $0.5.

Combined with the current positive market trend, and the fact that the initial circulation of CLOUD is likely to be reduced due to the dynamic amount mechanism, the above two prices (0.3-0.5) may be a reasonable valuation range.

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