Avalanche-based Social Protocol Arena Launches ARENA Token and Initiates Airdrop Following Exploit Recovery
In Brief
Avalanche-based social protocol Arena launches its token ARENA and plans to conduct airdrops, marking a resurgence from last year exploit.
Avalanche-based social protocol Arena (ARENA) announced the launch of its native ARENA token and plans to conduct airdrops, marking a resurgence from a significant exploit the project experienced last year.
According to the announcement, the ARENA will serve as a governance token, functioning as an ERC-20 asset built on the Avalanche Contract Chain. In the event of a majority vote supporting the transition of the Arena to its dedicated subnet, the utility of ARENA will expand from governance to encompass the native Gas token of the Arena subnet.
The project further highlighted that a sum of 37,120,167 points has been distributed to over 100,000 users, with each point qualifying for 69 ARENA tokens. This allocation results in 2,561,292,000 ARENA tokens, equivalent to $2.56 billion for the airdrop. Additionally, the Arena specified that only 10% of the total airdrop tokens will be dispersed in the initial phase, while the remaining 90% is anticipated to be distributed monthly over the coming year.
The main role of ARENA tokens is to function as governance units within the Arena ecosystem. Governance decisions will be made collectively by the community members who have contributed to the platform’s growth. Each ARENA token will correspond to one vote in the governance process.
Additionally, in the upcoming days, Arena plans to launch an incentive program, March Madness, that aims to distribute up to 10 million bonus points ahead of the ARENA release. Points will be allocated and updated regularly throughout the program duration, considering activity from March 11th, including the last airdrop.
The program will favour buying volume, portfolio value, and referral activity. Through this initiative, Arena aims to enhance liquidity within the ecosystem, onboard new users, re-engage previous users, and reward supporters who remained with the project over the past turbulence under Stars Arena.
Arena Sparks AVAX Community Frenzy Before Suffering Major Hack
Debuting in October 2023, Arena, formerly known as Stars Arena, swiftly attracted a devoted following within the Avalanche (AVAX) community, with some participants amassing up to 1,000 AVAX in trading fees through the platform. Additionally, the platform contributed to a surge in AVAX token prices, driving them up by as much as 6% at one juncture during the week it launched.
It garnered significant attention as a counterpart to Friend.Tech, a social application built on the Ethereum blockchain that rapidly attracted 100,000 users within weeks of its release. Both applications enable users to acquire “keys” or “shares” of prominent social media platform X users, granting holders access to exclusive chatrooms with privileges. The values of these shares exhibit high volatility, prompting some users to view price fluctuations similar to tokens and capitalize on them for profit.
However, the platform faced a significant loss of its locked funds just over the week after launch when attackers exploited a smart contract designed to safeguard tokens on the social application. Approximately $3 million worth of Avalanche’s AVAX tokens were drained, leaving Stars Arena with just under $1 in funds following the attack.
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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
