Ether.fi Launches First Airdrop, Sets to Distribute 68M ETHFI Tokens in Q1, 2024
In Brief
Ether.fi announced the availability of its airdrop eligibility check tool, with airdrop applications commencing today.
Non-custodial liquidity staking protocol Ether.fi (ETHFI) announced the availability of its airdrop eligibility check tool, with airdrop applications commencing today. According to the announcement, 68 million tokens were issued in the first quarter, constituting 6.8% of the total supply.
Following community feedback, the project has increased its allocation by over 12 million tokens, representing an additional 1.2% of the total supply. This adjustment favours small stakers and does not impact larger holders’ ownership. On average, users received 575 tokens each, with a median distribution of 175 tokens. The largest individual allocation amounted to approximately 3 million tokens, with the corresponding user depositing $480 million during the Final Countdown event.
Deposits made during the Final Countdown event resulted in an additional 7.7 million tokens allocated to other participants. The token distribution for the first quarter is divided as follows: 90% allotted to stakers, 6% to partners, and 4% to early adopters, including fan NFT holders and EAP participants. Stakeholders collectively receive 90% of the tokens, amounting to 61 million tokens, distributed based on their stake ratios. Although the distribution is linear, it favours small stakers.
Notably, the bottom 50% of wallets contributed only 1.8% of the total value locked (TVL) but received 18% of the token distribution. Meanwhile, the top 10% of wallets contributed 88% of the TVL and received 65% of the token distribution.
The participation criteria stipulate that any user accumulating over 1,000 points through staking activities can participate. Earning 1,000 points equals staking 1 ETH for one day or staking 0.1 ETH for ten days. Early adopters, including fan non-fungible token (NFT) holders, will receive 430 tokens per NFT, while independent stakers involved in “Operation Lone Stacker” will receive 4,200 tokens. Additionally, badge holders and referrers receive supplementary token allocations. Users ineligible for participation include those who have earned fewer than 1,000 points through the staking campaign, and individuals who have not received airdrops from the early adopters plan (EAP) transitioned out users.
Ether.fi Faces Community Backlash Over Token Allocation
Ether.fi is a protocol enabling users to stake ETH and receive eETH, a liquid staking token native to the platform, fostering decentralized finance (DeFi) activities. Earlier this year, Ether.fi concluded a $27 million investment round led by venture firms Bullish and CoinFund. With nearly $3 billion in TVL, the protocol is the largest Ethereum liquid restaking platform, as per DeFi Llama data.
Ether.fi announced its plans for an airdrop last week. Shortly afterwards, community members noticed that Justin Sun, the controversial founder of TRON, appeared to be slated to receive around 3.5 million tokens from the initial 60 million token allocation.
In response to community complaints, Ether.fi founder Mike Silagadze addressed the concerns by announcing plans for additional token airdrops to community members while defending the token allocation to Justin Sun.
“Just because someone made a substantial deposit doesn’t imply that we will alter the rules or disadvantage them. We value Justin’s support and will adhere to the campaign rules we established,” said Mike Silagadze, founder of Ether.fi.
Despite community concerns, Ether.fi remains committed to fairness and transparency in its adjusted token distribution and airdrop processes.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
