SudoAMM, an automated market maker for NFT trading, will be launching a token.
Sudoswap outlined its plans to distribute a governance token for sudoAMM in a Sept. 1 post. SUDO will launch with an initial supply of 60M tokens.
While not yet live, a Dune Analytics dashboard shows a price of $3.64 for the token, which will trade under the ticker SUDO.
That price is an estimate based on the distribution plan for SUDO, where 41.9%, of the initial supply will be distributed to XMON holders — XMON is another fungible token and is part of the broader 0xmons ecosystem, which also includes an NFT collection with a floor price of 22 ETH, as well as an over-the-counter (OTC) NFT marketplace.
Almost 75% of the 10,000 XMON supply is held by the 0xmons treasury and is ineligible for the airdrop. That leaves 2512 XMON to receive 41.9% of the initial SUDO supply, which amounts to 25.12M, or 10,000 SUDO per XMON.
Given that XMON’s current price is oscillating around $37,000 and each token is set to receive 10,000 SUDO, people are dividing the price of XMON by the amount of SUDO to estimate the price that SUDO could trade at after launch.
XMON jumped over 50% to $43,934 from $28,817 in just over an hour after the news hit on Sep. 1.
XMON holders will need to lock their tokens, making the XMON non-transferable, for three months in order to receive their SUDO distribution. XMON holders have one month to lock up the tokens.
Once the XMON token unlocks, it’s unclear whether the token will maintain any value, which may have been essentially migrated into SUDO tokens.
The second largest slice of SUDO, 25.1%, will go to a treasury governed by SUDO holders. The founding team will get 15% of the supply on a three-year vesting schedule, with the first tokens unlocked after one year. SudoRandom Labs, which supports sudoAMM, also gets 15% of SUDO.
Holders of 0xmons NFTs will have been allocated 1.5% of the SUDO supply.
Initially, SUDO will be non-transferable. A governance vote by SUDO holders will be necessary to make the token transferable and thus tradeable.
Uniswap For NFTs
SudoAMM started testing on-chain in late April.
“I think [sudoAMM] is the [Uniswap] V3 that the NFT markets are missing,” 0xmons, the project’s co-founder, told The Defiant at that time.
Uniswap V3 changed how people approached providing liquidity by enabling users to only do so within specific price ranges. In the same way, sudoAMM allows users to only sell or buy NFTs within specific price ranges. The platform crossed $10M in trading volume earlier this month.
Volume has continued to trend upward since SudoAMM’s launch on May 4 — the daily average over the past week has been 766.65 ETH, or over $1M, according to a Dune Analytics query.
In comparison, OpenSea, the leading NFT marketplace by volume, has processed over $10M in volume every day since June despite volume sinking to a 13-month low in August.
As depressed prices have led public interest in NFTs to wane, the SUDO airdrop no doubt comes as a welcome respite for eligible investors.