Drift Protocol, a decentralised perpetual and spot trading platform for cryptocurrencies, has announced that it will be launching its own DAO or Decentralised Autonomous Organisation to govern the project.
The DAO was created to make the project more decentralised and community-owned to involve supporters of the project in future developments.
With the launch of its DAO, Drift Protocol is launching its governance token called $DRIFT which will be airdropped to loyal Drift Protocol users.
Drift Launches its DAO with 3 Governance Models
The DAO will be launched with a multi-branch infrastructure where there are three branches of the DAO itself, governing every aspect of the ecosystem.
Multi-branch infrastructures in DAOs have been popular recently, due to the benefits that they give to the DAO members themselves, as well as the longevity of the project’s ecosystem.
The information about the multi-branch infrastructure was published on the Drift Protocol’s official Twitter account on April 17th, 2024.
In the tweet, there are three details on the DAO which explain how the three branches of the DAO will work in terms of keeping the Drift Protocol decentralised.
The first branch is the Realms DAO, which will be responsible for the protocol development aspect of things and the election process of the security councils.
The second branch is the Security Council, which will be responsible for overlooking the protocol’s upgrades and parameterisation.
The third brand is the Futarchy DAO, which will be responsible for processing Drift’s ecosystem fund and grants.
All of these combined will be run by the holders of the $DRIFT Token, which will be airdrop after the launch.
100M $DRIFT Airdrop
Currently, there are no detailed information on when the airdrop will be distributed as well as the snapshot of the airdrop itself.
This is why the transaction volume in the Drift Protocol is currently increasing, because of airdrop hunters that want to be eligible for the airdrop, capitalising on potential a later snapshot, since there is no information yet.
However, there are some pieces of information about this airdrop, where the total allocation for this is 100 Million $DRIFT, which is 10% of its total supply.
There are no details or speculations yet on how much the token will be priced at initially since the overall information on its token economics has not been published yet.
Overall, it will be interesting to see how this project will be developed going ahead with a DAO, which might push the value of decentralisation more into the Solana Blockchain, which is currently known as a less-decentralised blockchain.
It will all depend on its first proposal and its token allocation after the launch. Because, if all of a sudden there is an insider or a core team that has many tokens and can alter votes, then the DAO will be rendered useless, just like what is happening with Sushiswap currently.
If the allocation is fair and the DAO runs smoothly, then the hype of Solana’s DeFi ecosystem might come back again, potentially changing the narrative on Solana from meme to DeFi.
