How are ether.fi airdrops distributed? A quick look at the ether.fi airdrop distribution method in one article

After Justin Sun deposited 120,000 ETH into ether.fi last week, the community began to pay attention to the issue of airdrop distribution. Communities fear this will dilute their share. To balance the interests between whales and smaller players, ether.fi has adjusted its token distribution based on community feedback. However, some community users have questioned the linear allocation model it adopts.

How are airdrops distributed?

According to the data released this time, the number of airdrops in the first quarter accounted for 6.8% of the total token supply, taking March 15, 2024 at 08:01 as the snapshot time.

According to ETHFI token economics, the total supply is 1 billion and the circulating supply is 115.2 million. 2% of the token allocation will be used for Binance Launchpool, 11% will be allocated to airdrops, and 32.5% Allocated to investors and advisors, 23.26% allocated to the team, 1% allocated to the Protocol Guild, 27.24% allocated to the DAO Treasury, 3% used to provide liquidity.

This airdrop ratio shows the importance the project attaches to early participants. In addition, ether.fi also fully considered the opinions of the community and issued an additional 12 million ETHFI (1.2% of the total supply) to small stakers. This additional airdrop will not affect Whale’s airdrop distribution.

According to the latest data, each user received an average of 575 tokens in the airdrop. Calculated based on the lowest asking price in the current Whale Market pre-release market, these tokens are worth US$2,875. However, based on feedback from community users, it seems that even those conservative airdrop numbers were 175 ETHFI, which was also confirmed as the median, corresponding to a value of $875.

The address that received the largest airdrop allocation (approximately 3 million tokens) was that of Justin Sun, who deposited $480 million in assets during the Final Countdown event. However, ether.fi has also made it clear before that it will set a 3-month vest limit for whale wallets. ether.fi’s Final Countdown event lasted from March 5 to March 15, using a matching model, in which every 50,000 ETH pledged will receive 0.125% of tokens, and original pledgers also enjoy the same matching ratio. That is 0.125%. The Final Countdown event saw the community receive an additional 7.7 million tokens allocated to them.

In terms of specific distribution to stakers, they received 90% (61 million tokens) of the distribution based on the proportion contributed by the stakers. ether.fi adopts a linear allocation mechanism, which is more friendly to small stakers.

Based on deposit value, the bottom 50% of wallets only contributed 1.8% of the total pledge value, but received 18% of the token distribution. In contrast, although the top 10% of wallets contributed 88% of TVL, they only received 65% of the token allocation. This suggests that allocations are more beneficial to smaller participants, thereby encouraging their active participation.

ether.fi explains that the reason for choosing a linear model over a hierarchical model is that hierarchical airdrops are very easy to manipulate and susceptible to Sybil attacks. However, ether.fi’s linear distribution model has also raised some questions from the community. Some users pointed out that both depositing 0.1 ETH and depositing 1 ETH received 175 tokens; some users said that in early January, they deposited 0.5 ETH in the first address and 0.2 ETH in the second address, but the two addresses Both received 175 tokens. Some users said that the airdrop numbers of 30,000 points and 200,000 points are the same.

Who is eligible for the airdrop?

Of the first quarter token distribution, 90% will go to stakers, 6% to partners, and 4% to early adopters (fan NFT holders and EAP participants).

For stakers, the minimum airdrop threshold requires more than 1,000 points through staking, which is equivalent to staking 1 ETH for 1 day, or staking 0.1 ETH for 10 days. This means that if you stake less ETH, as long as the staking days are long enough, you will have the opportunity to receive the minimum living allowance airdrop. Even if you deposit 0.01, you can receive the minimum living allowance as long as you deposit enough for 100 days.

Additionally, fan NFT holders will receive 430 tokens each, while Solo Staker with a single address will receive 4,200 tokens. Badge holders and referrals also receive additional allocations.

It is worth mentioning that there are 26 ways to accumulate ether.fi loyalty points, but this airdrop will only be allocated to addresses that have obtained more than 1,000 points through staking. If you only have badge points but no staking points, you are not eligible for the airdrop.

To sum up, this linear distribution method of ether.fi aims to balance the interests of giant whales and small participants, and further promote the broad participation and healthy development of the community . However, there are still some doubts about the specific linear distribution method, and further official disclosure is needed to eliminate community doubts.

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