Sudoswap Is Getting a New Governance Token
XMON holders will be the major shareholders of Sudoswap’s latest governance token
Source: DALL·E
key takeaways
- Although announcements have been made, the SUDO token has not yet been deployed
- The Ethereum-based token will initially be non-transferable until a governance vote determines otherwise
Decentralized NFT marketplace Sudoswap is laying the groundwork for a massive airdrop of 60 million SUDO tokens, an up-and-coming governance token built on the protocol.
At its core, Sudoswap allows users to use liquidity pools to buy and sell NFTs (non-fungible tokens) — similar to how Uniswap participants provide liquidity to pools and earn money from trading fees. The SUDO governance token will allow holders to participate in protocol governance and ensure the organization moves in the right direction.
The Ethereum-based token will initially be non-transferable, a blog post by Sudoswap said. This is to ensure that SUDO will not be circulated unless there is sufficient governance participation from SUDO holders.
“A governance proposal to initiate transferability may be put forward through the standard governance process for the sudoAMM protocol, which will be addressed at a later time,” the blog said.
The plurality of SUDO tokens (41.9%) will be available for distribution to XMON holders — a utility token behind NFT project 0xmons — a scarce digital collectible inspired by a mix of Pokemon, SCP and Lovecraft that lives on the Ethereum blockchain.
XMON holders will have a one-month window to decide if they want to receive SUDO. Those who wish to hold the governance token must lock away their XMON tokens for three months before withdrawal — a necessary step, as it will indicate their willingness to participate in sudoAMM governance.
“XMON will retain 100% of its functionality and will in no way be altered by the locking mechanism, except that the locked XMON will not be transferable during the locking period,” the blog post said. “The SUDO distributed is pro-rata to the amount of XMON locked, at a rate of 10,000 SUDO per 1 XMON locked.”
Of the remaining 58.1% of SUDO tokens, 15% will be given to the initial founding team of Sudoswap; another 15% will be distributed to SudoRandom Labs, a primary contributor to the sudoAMM protocol; and 25% will be given to the treasury governed by SUDO holders.
0xmons NFT holders and retroactive liquidity providers will each receive 1.5% of the initial SUDO supply.
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