The Solana group is praising liquid staking protocol Sanctum after it revealed particulars for its token launch and promised to ditch the predatory techniques which have marred different launches.

Sanctum stated it’s going to airdrop 10% of its tokens to early customers, put aside one other 30% for its group, and promote 8% by way of a public onchain sale.

“Projects in the past started with so little and launched with crazy inflated FDVs,” Sanctum co-founder FP Lee in an X Areas stream outlining the launch. “We don’t want that. We want to start low and go up.”

Lee was referring to completely diluted valuation, — or FDV — the full worth of a token’s provide, together with these locked or but to be distributed, and never simply these which might be circulating.

Sanctum additionally stated it beforehand bought 13% of its token to traders, a comparatively small quantity in comparison with different tasks, and reserved 25% for staff members.

“It’s well done, and well-balanced between team, investors, and community,” Kasper Vandeloock, CEO of crypto buying and selling agency Musca Capital and advisor to a number of DeFi tasks, informed DL Information.

“It signals they are here for the long term, and launching a token is not them trying to find exit liquidity.”

Defi customers have pushed again in opposition to tasks using what many name predatory “low float high FDV” token constructions that profit early enterprise traders.

Sanctum lets customers stake SOL tokens and obtain placeholder tokens in return, which can be utilized in DeFi.

It differs from different liquid staking protocols by grouping greater than 32 completely different liquid staking tokens right into a single pool of liquidity, giving merchants higher costs when swapping between them.

Sanctum has simply over $1 billion in deposits, in keeping with DefiLlama information.

Sanctum’s CLOUD token

Sanctum’s CLOUD token will let holders govern the protocol, equally to a decentralised autonomous organisation — or DAO.

However it’s going to additionally produce other makes use of, like as a collateral token that potential companions would want to stake.

Sanctum’s token plans are largely impressed by decentralised trade aggregator Jupiter, stated Yash Agarwal, a researcher at Superteam, a gaggle that helps Solana ecosystem tasks.

Jupiter allotted 40% of its token to its group by way of airdrops, and solely a small quantity to VCs.

“It’s also unique compared to other Solana projects, which typically have 10% to 15% in airdrops and 20% to 40% allocated to predatory VCs, launching at astronomical high FDVs,” Agarwal informed DL Information.

Sanctum will use Jupiter’s launchpad to conduct its token sale.

A number of Solana tasks have chosen to launch tokens by way of the launchpad as an alternative choice to launching by way of crypto exchanges.

“Centralised exchanges almost always ask for large listing fees: 1%, 3%, 10% of total supply,” FP Lee stated in his X submit saying Sanctum’s CLOUD token. “I would much rather those tokens go to the Sanctum community.”

Nonetheless, Lee stated, Sanctum is giving a comparable quantity — 1% of the token provide — to LFG, the organisation that runs the launchpad.

Moreover, CLOUD’s initially circulating provide, whereas greater than many latest airdrops, continues to be low.

Prime decentralised trade Uniswap airdropped 60% of its UNI token to early customers in 2020, whereas the Ethereum Title Service airdropped 25% of its ENS token in 2022.

‘True believers’

Sanctum additionally stated it needs to enhance on earlier airdrops by separating airdrop farmers from “true believers.”

Sanctum’s Lee stated he needs to maintain particulars of the mission plans secret to keep away from giving a head begin to these making an attempt to sport the system.

He did, nevertheless, say that Sanctum might delay airdrop claims, or reward recipients who select to delay their declare with extra tokens.

Tim Craig is a DeFi Correspondent at DL Information. Received a tip? E-mail him at tim@dlnews.com.