On September 1, Sudoswap, an NFT marketplace based on Ethereum, announced a new governance token, SUDO, to transform the project into a DAO (decentralised autonomous organisation), a framework that allows the community members to take collective decisions on the operation of a business.
Moreover, the Sudoswap team revealed that the NFT marketplace will be governed by the SUDO token. The team is trying to decentralise the protocol for its community members, which requires a token for the projects.
The rising NFT marketplace, Sudoswap, was launched in July and is based on the AMM model (automated market maker), a similar model to which Uniswap operates. The liquidity pools in the AMM model enable users to swap between two cryptocurrencies instantly.
Any customer can form an NFT pool on Sudoswap from a particular set of collections, paired with ether. Buyers and sellers of NFTs get trade quotes from such pools that can instantly be swapped for ETH or vice versa.
SUDO tokens will have a total supply of 60 million. Early contributors and holders of XMON tokens will receive a portion of SUDO tokens as an airdrop.
Based on specific rules, the SUDO team will distribute 60 million tokens as a gift to various client categories. A large portion of the token will be given to the users who have locked the XMON token, a native token of the NFT collection named 0xmons, that was earlier discovered by the team of Sudoswap.
As per token distribution details, 41.9% of the token supply, i.e., 25.12 million tokens, will be available to XMON token holders who have locked their XMON tokens in smart contracts to get the airdrop. According to the details, holders of XMON tokens should lock their assets for three months, after which they can be withdrawn.
Apart from this, the NFT holders of 0xmon will get 900,000 SUDO tokens or 1.5% of the token supply.
Moreover, the liquidity providers (LPs) will receive the token by taking part in the retroactive airdrop. The LPs will get a 1.5% supply of SUDO tokens, which will be equally divided among them. The liquidity providers (LPs) are the users who have deposited their ether and NFTs into the liquidity pools.
According to the distribution criteria, a 15% supply of SUDO tokens has been saved for the starting team members. The core development organisation of the project, SudoRandom Labs, will get 15%. The following tokens given to SudoRandom Labs and team members will depend upon a three-year vesting period and a one-year cliff.
The project depository is the last class to get the tokens. They will get 25.1%, or 15.08 million SUDO tokens. These assets will be directed by the community members for development and expansion work. SUDO tokens can’t be claimed at present and can only be opened after the community vote at a future date.
The announcement from Sudoswap with a retroactive prize makes it the latest project to launch its own token. CowSwap, Hop Bridge, and Optimism are other projects that launched their governance tokens for their early adopters alongside airdrop plans.