Opium – the decentralized derivatives protocol – has just announced its governance token launch via retroactive airdrop and its subsequent liquidity mining program. Anyone that previously utilized Opium to speculate on price or hedge against trading risk may be eligible for the airdrop.
It was a smart airdrop "DROPIUM" to all users of Opium in 2020
We got 1000s of feedback msgs and want to say: make sure you understand how it works before you claim.
For 8 tokens you may still receive 100'000 tokens if others quit before you
— Opium (@Opium_Network) January 27, 2021
The Opium team cites research around Uniswap’s mass retroactive airdrop as the basis for much of their design decisions.
From the start, they wanted to ensure the airdrop rewarded true-believers of the protocol rather than speculators that would sell their tokens on the open market immediately. With this goal in mind, the Opium team introduced a scheme that aims to skew rewards towards long-term oriented participants.
Opium liquidity mining tokens will be placed in a vault from which users can withdraw their earned tokens at will, with the caveat that early withdrawers will face a penalty and their loss becomes the gain of the longer-term participants. The early withdraw penalty rate can also decrease with time in order to reward all participants that decided to hold their tokens for an extended amount of time.
From the team’s rough calculators, depending on the situation the last holder to withdraw could earn as much as 30,000x more than the first holder to withdraw.
The hope is that this new distribution mechanism rewards the strongest supporters of the Opium protocol through natural incentives and game theory.
You can check you’re eligibility for Opium tokens by connecting to opium.finance and heading to the “Rewards” page. For a 2 minute explainer on Opium protocol’s token distribution check out this video created by the team.
To keep up with Opium Protocol, follow them on Twitter.