Puffer Finance is extending its token utility and also said that early adopters and other eligible DeFi participants will be part of an Airdrop.
The governance token $PUFFER has been officially launched by the liquid restaking and rollup platform Puffer Finance. In the release announcement, the company asserts that the move continues its commitment to transparency and trust and presents novel opportunities for community engagement and decision-making.
Furthermore, the organization has announced an airdrop that will allocate a portion of the tokens to early adopters and other eligible participants in the DeFi sector.
Puffer Finance Announces Token Details During Airdrop Campaign
The platform disclosed that the total token supply is restricted to 1 billion when discussing PUFFER’s tokenomics. In other words, with an initial circulation of 102.3 million. It plans to allocate 40% of this to community and ecosystem initiatives. Additionally, 20% will be allocated to early contributors and advisors, while 26% will be allocated to investors.
Ethereum core development has also been allocated 1% of Puffer’s resources. Although this allocation may appear insignificant, it may be sufficient to demonstrate the platform’s dedication to the Ethereum network.
The airdrop process will commence on October 14, 2024, and conclude on January 14, 2025. This ensures that participants have sufficient time to claim their tokens and become more involved in the platform’s governance ecosystem.
It is worth noting that Puffer Finance has already achieved a certain degree of success with its inaugural airdrop campaign season, which was dubbed the “Crunchy Carrot Quest.” The airdrop, which made 75 million tokens available (approximately 7.5% of the total supply), has already garnered attention due to a snapshot taken on October 1.
The most recent announcements indicate that the second airdrop season is imminent. It may already be in progress, as Puffer has allocated an additional 5.5% of the total token supply. This implies that Puffer has allocated 13% of its tokens for community airdrops.
Governance and Utility Staking
It is important to note that the introduction of $PUFFER is not solely about community rewards. Puffer perceives it as an opportunity for the platform to make a bold statement, particularly in the context of decentralized governance.
About the authority of PUFFER token holders, the official statement states:
“The $PUFFER token will empower our community to participate in key decisions, guiding Puffer’s future and keeping Ethereum’s core principles at the heart of everything we do.”
The governance process will be established based on a vote escrow mechanism per the platform. This enables users to exchange their Puffer tokens for vePUFFER tokens, which confers voting power within the ecosystem. They can then stake their tokens.
Puffer Finance’s ascent to prominence was precipitated by its liquid staking token, Puffer LST. That was before the expansion of liquid restaking services through EigenLayer.
Nevertheless, it recently disclosed initiatives designed to attract participants to its expanding ecosystem.
UniFi, a roll-up solution for transaction sequencing, is currently being developed by the platform. It is also engaged in developing UniFi AVS, a pre-confirmation service intended to expedite rollups.