Airdrops are the embodiment of web3’s sharing culture.
The users aren’t the product anymore and we all made it common to give back to those early users who believe in the project, the team and the vision.
Building a new economy has its perks.
We wish to build and cultivate a win-win relationship with our end-users to ensure steady and consistent growth.
Safety first
We see no benefit in pretending that we live in an ideal world.
Airdrops have often been used to quickly draw users and — as an unwanted result — have culminated in early adopters dumping their bags to the detriment of the project.
Such strategies are of no use to us, so we decided to think further about our approach and explain it as clearly as possible.
The main idea is that economic incentives are the way to go for us at this stage, because they work, but they should not be the end goal.
“Airdrops are a way for web3 dapps to draw users by empowering them and incentivizing the people to test and join your vision,” explained Nested’s founder — Rudy Kadoch.
Our goals
Nested is undeniably taking off.
The platform’s TVL is on a steady rise, 29,405 portfolios have been created by some 47,235 users, and we have launched on 5 chains so far — with more coming soon.
We are putting in the work and it shows.
The tangible progress that we are witnessing is greatly thanks to early adopters — and for that, we thank you.
We want to empower our community as a token — pun intended — of gratitude for their trust and engagement.
We also intend to attract newcomers to our crypto community and let them have a taste of social finance for the first time.
We are well aware that getting started is not always easy — so a little extra motivation won’t hurt.
Finally, the Airdrop will also allow us to put liquidity in the hands of our community members before the TGE — Token Generation Event. This way, the market will be ready by the time we launch our native token.
The rules of the game
We had to put some rules into place to meet our objectives and filter out the handful of fraudsters trying to dilute rewards for the community.
Time to be blunt: value matters.
Only portfolios with a value of $20 or more will be considered for the snapshot. Similarly, copies that are worth less than $20 will not be taken into account for the number of copies in the formula.
This is a way to limit bots and airdrop farmers while rewarding Nested’s true users.
It also will not be a one-time thing according to our CEO.
“One shot airdrops aren’t a good idea… people come for it and then leave without looking back… what we need is a long-term airdrop with epochs to incentivize new users to join every day… that’s the way to go,” assured Rudy.
A snapshot is taken every week and rewards are distributed a few days after.
The airdrop will last for a total of 28 weeks from May the 2nd at 00:00 UTC.
Every week corresponds to one epoch and every epoch ends on Sunday 11:59 PM UTC.
NST tokens will not be claimable prior to the token generation event.
A special Genesis batch of 50’000 NST tokens will be shared among the very early birds who used the platform from February 23rd 2022.
In addition to these rules, we separate the user base into two categories: those who have a cumulative portfolio value equal to or smaller than $1000 and those who have more.
Users with a cumulative portfolio value of less or equal to $1000 will share a weekly amount of 10,000 $NST and an initial Genesis batch of 25,000 tokens.
Those with a cumulated value above $1000 will share the weekly increasing amount, from 25,000 at the genesis epoch and up to 147,551 tokens per week at the last epoch.
Under the hood
We don’t know about you, but a big math formula with no context can be hard to digest.
So let us break the formulas we use down to allocate the distribution of tokens:
The first step is to determine a score for every account.
This score is measured using the formula below:
Where Sjk is the Score of the user j for epoch k.
Then, Fjk is used to take into account the fees paid by the user j during epoch k.
Vj represents the Total Value Locked into Nested by the user j.
While Ck represents the number of copies made of a user’s portfolios during epoch k than multiplied by Ljk, the value of the copies — remember that only copies of more than $20 are taken into account for this metric.
Finally, djk is the number of chains that the user j interacted with during the epoch k.
Every element of the function has a lower bound of 1 — aside from the TVL. This way, your score doesn’t go to zero if you haven’t used Nested during an epoch but still have assets locked in original portfolios or copies.
Once your score is computed, we plug it into the following function to determine the allocation:
Where the final airdropped amount rjkis a function of the total amount of tokens to airdrop Rk, times the proportion of your score compared to the sum of the scores of all users.
This way, we believe to achieve a model that takes into account relevant metrics that evaluate the airdrop people deserve based on their usage of the dapp.
Another point of interest is that the user base — as we hope — is going to increase every week, which would dilute the allocation superficially. We will increase the absolute amount of airdropped tokens every week to solve that issue.
Early adopters will not suffer from Nested’s growing popularity from now on.
We believe we found the way to create the mutually beneficial situation we were looking for.
In case of an update — or of doubt — please refer to the Airdrop documentation as the holy bible.
As usual, don’t forget to follow-us. Happy airdrop!
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– Find us: https://nested.fi
