With the release of DAO and the DRIFT token governance, the Drift DAO Foundation is pleased to announce a major step forward in the development of a truly community-driven system.
Source: Drift Token
With the ability to influence decision-making procedures and control the future course of the Drift ecosystem, users and contributors will be significantly benefited by the DRIFT token governance.
Read More: What are Crypto Airdrops?
Why Now?
First among the DeFi initiatives on Solana to launch in 2021 was Drift. Drift has expanded to become Solana’s biggest open-source perpetual futures DEX since that time. At the time of Drift’s start, it had less than 100 daily active traders and $1 million in Total Value Locked (TVL). Today, over 175,000 traders, $350 million in TVL, and a total volume of $20+ billion are on Drift.
Drift is ready for the next stage of expansion, building on the strong foundation laid over the last three years. With a protocol that delivers unmatched utilization and maximizes user dispersal, Drift hopes to expand DeFi beyond CeFi. The Drift community has direct control over the long-term vision of the protocol thanks to the DRIFT token governance.
Introducing DRIFT
The goal of DRIFT is to give devoted Drift Protocol users more power.
By giving Drift users actual ownership of the protocol and a substantial role in determining its future direction through the Drift DAO, the DRIFT token governance aims to empower Drift users above all else. With regard to decision-making within Drift, the governance token represents an inclusive and group approach.
Decentralization is important. Drift guarantees sustainable, healthy growth alongside its most engaged members by distributing authority and decision-making throughout the ecosystem rather than centralizing it.
Drift DAO Foundation
Coordinating the actions and choices made by the DAO and token holders will be made easier by the Foundation.
Webslinger, a consulting company for the latest cryptocurrency projects, will oversee the Foundation’s DAO, and Matt Shaw, an independent director, will serve as its leader. The Foundation will offer reports on transparency.
Drift DAO
In order to guarantee that the Drift environment continues to fulfill the changing needs of traders within the Solana ecosystem, the development of the DRIFT token governance has given holders the ability to actively participate and vote on important choices.
Source: Drift Token
With three branches — a Realms DAO for general protocol development, a Security Council for overseeing protocol upgrades, and a Futarchy DAO for funding technical grants — the Drift DAO will be a first-of-its-kind multi-branch DAO.
Realms DAO
This branch is in charge of the protocol’s general development and chooses a Security Council made up of the Drift ecosystem’s most competent developers and contributors. Without sacrificing decentralization, the goal is to preserve quick market operations. They have the authority to make decisions and take initiatives such as, but not restricted to
- Uses a DAO vote to choose the Security Council members.
- Updates on future tokenomics, including suggestions for staking and their workings.
- Rewarding contributions to the Drift Protocol’s continuous development.
Security Council
Oversees the monitoring and upgrading of risk parameters, such as maintenance margin ratios, fees, and program updates. Approval of new markets and modifications to fees or leverage is the responsibility of the Security Council. They have the authority to make decisions and take initiatives such as, but not restricted to
- Establishing the Drift Protocol’s fee parameters.
- Adjust risk settings (leverage, asset/liability weights, maximum deposit and open interest caps).
- Give approval for software and program updates.
- Spot and perpetual futures markets additions and deletions.
Futarchy DAO
In charge of providing grants and financing ecosystem initiatives meant to introduce items that are closely related to or adjacent to Drift. Based on the time-weighted average prices of a conditional market, the Futarchy DAO makes choices under the unique futarchy model that MetaDAOProject has put into place. Some suggestions that they might make are as follows, but they’re not limited to
- Supporting new projects inside the Drift ecosystem, including open-sourced SDKs, wallets, trading bots, alternative frontends, specialized RPCs, and validator clients.
- Awards for assisting in the continuous development and enhancement of Drift’s products and practices.
- The DAO may suggest and create new elements and enhancements to on-chain governance.
Tokenomics
One billion DRIFT token governance will be available. The community will receive the majority of these tokens (more than 50%) during their five-year distribution.
Source: Drift Token
The following categories will receive DRIFT token governance distributions:
Community – 53%
Ecosystem Development and Trading Rewards – 43%
A wide variety of stakeholders, including algorithmic traders and stakers, make up Drift’s community, which is its lifeblood. The goal of this allocation is to increase the number of active Drift users by offering rewards for trading, upcoming airdrops, and liquidity provision. To increase Drift’s usage, the Futarchy DAO will also start public awareness campaigns and provide funding for developer tools and resources.
Launch Airdrop – 10%
For the initial launch phase, 10% of all DRIFT token governance have been set reserved. To acknowledge their past contributions to the development and expansion of Drift, these tokens will be given to current Drift users.
Long-term traders, users of the platform’s BAL or Insurance Fund programs, depositors who actively contribute to the protocol, and liquidity providers in trading programs are all included.
Protocol Development – 25%
The purpose of this allocation is to support present and upcoming developers of Drift Protocol infrastructure, tools, and products that want to increase the number of decentralized DeFi applications available on the Protocol. Treasury monies designated for protocol development are included in this allocation.
To guarantee a mutual understanding, the tokens belonging to the core contributor team are governed by an 18-month lock-up term, which is followed by an 18-month vesting period.
Strategic Participants – 22%
Drift has been lucky to have the backing and advice of important industry partners during the years of development. By offering advice and providing assistance for important infrastructure advancements, their contributions have greatly improved the network, and this allocation reflects that.
Token Emission Schedule
The 5-year timeline for DRIFT emissions will ensure that all DRIFT is completely circulated and that the majority is used for ecosystem growth.
Source: Drift Token
What’s Next?
Next is the launch airdrop. Before the airdrop, you should be prepared for the following:
- We’ll soon be releasing a blog article detailing the requirements for eligibility for airdrops.
- Eligible users can obtain their DRIFT token governance within a designated claim period.
The first step towards Drift’s decentralization is the launch of DAO and DRIFT. We can’t wait to see how the Drift DAO advances Drift’s long-term development!
Disclaimer
As soon as the eligibility checker and airdrop claim tools go live, the Foundation will notify you. Keep in mind that Drift contributors won’t ever approach you, inquire about your personal details, or demand payment.
Members in the community are strongly encouraged to use caution and be on the lookout for any potential scams or fake websites. You won’t ever receive a first message from the Foundation or community moderators requesting private keys or personal information.