Quick view of the latest information on Sanctum Token and Airdrop

Original | Odaily Planet Daily

Author | Azuma

On June 5th, Beijing time, Solana ecosystem LST staking protocol Sanctum officially announced the basic information about the token economic model, and explained some detailed plans about the points activity and airdrop scheme through subsequent community AMA.

As the leading project in the second round of voting projects on the Jupiter LFG Launchpad, Sanctum has always attracted a high level of attention in the Solana community. Over the past one or two months, Sanctum has made rapid progress in terms of data, especially with the assistance of the first season points event Sanctum Wonderland S1, with a TVL of 10.3 billion US dollars as of the time of writing, making it the fourth-ranked DeFi protocol in the Solana ecosystem.

Project Brief Analysis

In April, Sanctum announced the completion of seed round extension financing, led by Dragonfly, with participation from Sequoia, Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, Marin Digital Ventures, and others. The amount of this round of financing has not been disclosed, but Sanctum revealed that the total amount of financing for the project has reached $6.1 million.

Unlike conventional liquidity staking protocols, what Sanctum does is more like helping Solana build a more unified liquidity staking paradigm to address the liquidity fragmentation of major liquidity staking tokens (such as LST, including Sanctum’s own INF, jitoSOL, mSOL, bSOL, and other tokens) within the Solana ecosystem.

By building a unified liquidity layer around the liquidity collateralization scenario, Sanctum can use multiple modules such as Reserve (which supports instant unstaking services for all LST), Router (which supports the conversion of LST pairs that usually don’t have a trading path), and Infinity (which supports the conversion between all LST) to help users achieve fast and lossless redemption or low-wear conversion between major LSTs.

Token Economy Model

Last night, Sanctum’s founder FP Lee disclosed the token economic model of the project.

The protocol token of Sanctum will be named CLOUD. In addition to having basic governance utility, FP Lee also mentioned that potential partners may need CLOUD to qualify for Sanctum’s verification program, which also adds a certain practical value to CLOUD.

The total supply of CLOUD will be 1 billion, with the specific allocation as follows:

• Community Reserve 30%: The community reserve should be strategically used to expand Sanctum’s market share, and the community will ultimately decide how to use this reserve.
• Strategic Reserve 13%: The team will use this reserve to develop the Sanctum ecosystem, such as for future acquisitions, strategic investments, ecosystem partnerships, donation plans, market making, etc.
• Team 25% : Lock-up for one year, followed by linear release over 24 months.
• Investor 13%: Sanctum has previously sold some tokens at valuations of 50 million and 60 million, most of which were sold in 2021. This portion of tokens will also be locked up for one year and then released linearly over 24 months.
• Initial Airdrop 10% : Will be distributed to the community during CLOUD TGE.
• LFG Launch 8%: Inject initial liquidity for CLOUD on Jupiter’s Launchpad.
• LFG Donation 1%: This portion will be donated to Jupiter LFG, as Jupiter usually airdrops to LFG voters in accordance with past practices.

From the circulation perspective, CLOUD can achieve a maximum initial circulation rate of 18% in the early stage of TGE, including 10% of the initial airdrop share and 8% of the LFG Launch share, but the tokens unsold in the Jupiter Launchpad will be returned to the strategic reserve.

Points Activity

At present, the first season points event of Sanctum has officially ended, attracting a total of over 300,000 addresses to participate in the season.

However, there are still some details to be confirmed about the first season points event, including the utility information of “cupcakes” and the final points situation for users—Sanctum indicates that the statistical data is still being finalized, so the scores displayed on the front end may vary slightly.

As for the second season event, FP Lee’s original plan was to launch it immediately after the end of the first season event, but later decided to postpone it in order to provide users with a different participation experience, and to carry out a more enriching design. As for the specific launch time of the second season, there is currently no specific information, but it can be confirmed that it will be after TGE.

Airdrop Solution

The currently confirmed information about the airdrop is that 10% of the CLOUD tokens (100 million tokens) will be distributed to participants in the first season of the campaign. FP Lee also revealed that there will be a certain level of witch screening to distinguish between ‘farmers’ and ‘true believers’.

As for when the TGE and airdrop will take place, there is no specific timing at the moment. The official only mentioned that the eligibility for the airdrop will be disclosed and open for claiming in the coming weeks.

In addition, it is worth mentioning that although 10% of the CLOUD used for the initial airdrop has been included in the initial circulation, FP Lee mentioned the possibility of introducing some additional rules for the specific distribution design to ensure that “true believers” can have a certain liquidity advantage — such as setting 50% of the airdrop share to unlock immediately, and the remaining part to unlock within 7 days — but this plan is still to be determined.

Where to trade?

In addition to Airdrop, another direct way to obtain CLOUD is to participate in Jupiter’s LFG Launchpad.

A total of 8% of CLOUD will be invested as initial liquidity in Jupiter’s Launchpad pool, and FP Lee mentioned that the initial price curve of CLOUD will be launched with an FDV of $50 million, which is quite attractive.

In addition, FP Lee also emphasized that he will not pay any listing fees to any centralized exchange (CEX) because he would rather give the money to the community.

In summary, FP Lee welcomes CEX to choose to list CLOUD voluntarily, but will not force payment. This may result in CLOUD temporarily unable to enter more mainstream CEXs during the initial stage of TGE, so the on-chain market may be the main battlefield for CLOUD.