ParaSwap, a decentralized exchange (DEX) aggregator and market maker, launched its governance token, PSP, on Nov. 15.
In a retroactive airdrop, 150M PSP tokens, or 7.5% of the total supply, have been allocated for active users of the protocol. This comes after the protocol quashed rumours of an airdrop just last month, perhaps in an attempt to deter gaming.
PSP holders will have governance rights over the protocol through the ParaswapDAO.
ParaSwap attempts to source the best prices for users by obtaining quotes from private market makers on its platform and DEXs like Uniswap and Sushiswap. According to the announcement, PSP holders may stake their tokens to reward these market makers and incentivise them to provide better prices.
ParaSwap has been around since 2019 and the DeFi community has been talking about an airdrop for almost as long. But, the earliest users of the protocol have been left out of the token distribution because only addresses that conducted at least five swaps in the last six months are eligible for the airdrop.
In a separate blog post detailing their filtering logic, Paraswap noted that only 20,000 addresses are eligible for the PSP airdrop. That’s less than two per cent of the more than 1.3M addresses that have interacted with the protocol since its inception.
“We’ve established the distribution mechanism to target to the best of our ability genuine ParaSwap users that were not simply trying to game a potential token drop,” said the post.
Given the selective nature of the airdrop, it comes as no surprise that a lot of DeFi users are incensed they weren’t included. Many took to Twitter to express their ire.