The ParaSwap decentralized exchange (DEX) aggregator has announced the launch of its native cryptocurrency, PSP, on the Ethereum blockchain. Early users will receive 150 million PSP tokens as part of the project’s airdrop, after years of pressure from the crypto community.
The chosen 20,000 ParaSwap accounts will be awarded 150 million tokens, which is 7.5% of the entire supply of 2 billion PSP tokens according to ParaSwap CEO Mounir Benchemled in an interview with The Block. He also explained that the chosen users were filtered based on their on-chain activities for six months until October.
As per the team’s data dashboard, over 1.3 million addresses have engaged with the aggregator but many of those addresses attempt to cheat the system. The vast majority are farmers while some use bots to send tokens to thousands of wallets that aren’t actual, active users.
As a result, the team has narrowed the list of viable addresses to 20,000 that meet specific criteria, accounting for only 0.015% of all addresses that have interacted with ParaSwap. The remaining tokens are allocated for the team, investors and future ecosystem development. The allotment is as stated below:
- 17.6% of the tokens will go to its 12-person core team
- 5% will be allocated for future team members
- 14% will go to seed investors
- 10% will be maintained in reserves
- 51% will stay in the ecosystem
PSP can be used both as a utility token for staking and a governance token for voting participation according to Benchemled. that can be used both for staking and participating in governance. Additionally, it’s used as an incentive given to market makers similar to what centralized exchanges do.
For years, ParaSwap has resisted tokenisation and announced on Twitter last October 2 that the team was not planning an airdrop. However, Benchemled explained in an interview with CoinDesk that the timing of the airdrop was based on the growth of their platform. He insisted on making a ‘fantastic’ product and reaching a high number of users and volume first before tokenising and decentralising.
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