Holders of the XMON token and platform LPs will be eligible for a share of the airdrop.
SudoSwap, an NFT marketplace, announced the launch of its native governance token, SUDO, with an airdrop of coins to early backers.
The rise follows a recent surge in NFT trading volume following a pause that was part of a more significant decline in crypto activity.
SudoSwap launched its SUDO token on Monday, January 30. The ticket release, revised earlier today, includes an airdrop for the project’s early backers.
The SUDO airdrop will reward platform liquidity providers (LPs). SudoSwap is a different type of NFT marketplace than OpenSea. It mimics Uniswap’s automated market-making technology but for NFTs.
SudoSwap supports the development of NFT liquidity pools. As a result, there are liquidity providers or people that give liquidity in the form of NFTs and crypto tokens to facilitate trading, and the airdrop is intended to compensate them.
LPs are not the only ones who will profit from the airdrop; XMON holders can also qualify. XMON is the native token of the SudoSwap creators’ 0xmon ecosystem and contains an NFT collection.
To get the SUDO airdrop, XMON holders must lock their tokens for one month. According to the release, anyone who does so will earn 10,000 SUDO tokens for each XMON currency locked.
According to SudoSwap, the initial airdrop distribution would be non-transferable. However, the token launch’s decentralized autonomous organization (DAO) will vote to provide the ability to transfer these tokens. As such, SUDO will serve as the SudoSwap DAO’s governance token. Participants with up to 300,000 tickets can post governance recommendations to the DAO forum.
SudoSwap’s token launch and airdrop is the year’s first big event. The news comes when the NFT market appears to have reversed its downward trend that defined most of 2022. NFT trade volume on Ethereum has increased for the fifth week in a row, according to CryptoPotato.
This increase in NFT volume coincides with a broader recovery in the crypto sector, with total capitalization surpassing $1 trillion. In addition, cryptocurrency prices have risen since the beginning of the year.
