The MakerDAO founder, Rune Christensen, has announced an airdrop for the Spark Protocol’s native SPK token.
According to the proposal, the tokens will be released gradually, with the proposal outlining the distribution of two billion SPK tokens over the next ten years.
The proposal is aimed at promoting long-term engagement with the platform and outlines the eventual distribution of two billion SPK tokens over ten years in an effort to incentivize the continued usage of the Spark Protocol. The SPK token will also act as a governance token for SparkDAO.
“The goal of the SPK pre-farming airdrop is to give users and borrow-arbers a reason to keep using Spark Protocol if the EDSR proposal to increase stability fees to 5% goes through.”
According to Rune, the proposal would be an avenue for the community to secure SPK tokens before the launch of the SubDAO, with Rune stating on X,
“I posted an overview of the potential SparkDAO SPK pre-farming airdrop for early users of http://sparkprotocol.io borrowing: This would be a way to secure early SPK tokens before the SubDAOs launch (Farming not available to US and VPN users)”
Spark Expected To Become SubDAOSpark Protocol is a lending protocol that has been introduced by MakerDAO. The protocol provides DeFi loans, sourcing liquidity directly from Maker. As collateral, the protocol accepts several assets, such as DAI, ETH, and Staked ETH. Spark Protocol eventually aims to become a SubDAO, which marks a significant step in Maker’s Endgame Plan. As a subDAO, Spark will be an entirely independent, decentralized autonomous organization within MakerDAO. The Endgame plan envisions the creation of several subDAOs similar to Spark, each governed by its own distinct community and token.
A Way To Incentivize UsageThe SubDAO tokens will be allocated to Spark borrowers and will utilize several assets as collateral, distributed proportionately towards the amount and duration of borrowing. According to Christensen, the aim is to bootstrap a community of users and DAO participants whose goals are aligned with SparkDAO.
“We want to bootstrap a community of users and DAO participants that are aligned with the mission and potential of SparkDAO.”
The eventual goal is to incentivize the Spark token’s active usage, despite it offering a 5% yield on DAI deposits, also called Enhanced DAI Savings Rate. The EDSR on Spark climbed to 8% earlier in the week, resulting in a significant inflow of capital as users rushed to leverage borrowing arbitrage opportunities. This saw users borrow DAI at lower rates and then deploy it for higher yields in EDSR.
Maker’s new Spark Protocol has courted controversy following its launch after it emerged that the protocol’s terms of service actively prevented users from accessing the platform through virtual private networks (VPNs). By limiting VPN access, MakerDAO appeared to be restricting US-based users from accessing the platform.
Maker’s Endgame PlanMakerDAO’s Endgame is a significant update planned to enhance the protocol’s efficiency, resilience, and participation. It aims to do this by creating a strong governance equilibrium that would act as the bedrock for SubDAOs, helping parallelize growth and innovation in a community-driven ecosystem. In the short term, Endgame hopes to enhance the supply of DAI to over 100 billion within three years.
It also aims to ensure that the Maker ecosystem is anchored in a vibrant and independent DAO economy that could grow at an accelerating rate. At the same time, it would also maintain governance equilibrium, ensuring it could scale to any size.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
