Announcing $ATH Airdrop Mechanism

As we mentioned previously, users of Linear Finance and Chaotic Finance are eligible to receive $ATH airdrop. The purpose of this article is to explain the details of the airdrop, as well as the thought process behind how we decide on an airdrop mechanism.

Background

It was always clear that we want to conduct an airdrop to active Linear and Chaotic users. Therefore, before we even began to bake up the perfect airdrop mechanism, we clearly laid down the main goals we want to achieve through conducting this airdrop. They were:

• To encourage Linear and Chaotic users to build debt and trade synthetic assets on Athos Finance
• To reward active Linear and Chaotic users who are making the two protocols huge successes

At the same time, while Chaotic Finance successfully conducted an airdrop to Linear Finance users a few months ago, we understand that there were some community feedback suggesting Chaotic Finance could have done things a bit differently to better align the interest of all parties. We dug through Linear’s Discord server to uncover the feedback, and spoke to some of Linear’s community members. Some of the community feedback include:

• The airdrop mechanism only took into account users’ time-weighted debt balance, without factoring into users’ recent activities. Ideally users who have used Linear recently should be given a more favorable weighting.
• The claim period for airdrop was too short so quite a number of users missed out on the claim window.

We listened to the feedback and gave thorough consideration to all of them. We wanted to find a solution that allows us to achieve our goals while taking into account the community feedback as well.

Distribution

In our token metrics, 10% of the total $ATH supply is allocated for airdrop to users of Linear Finance and Chaotic Finance. The allocation is split into three buckets, with the distribution of $ATH based on time-weighted debt average over different time horizon:

• 6% based on Linear time-weighted debt average in 2022 until May 31
• 3% based on Linear time-weighted debt average before 2022
• 1% based on Chaotic time-weighted debt average until May 31

The time-weighted debt average formula is as follows:

Time-Weighted Debt Average =

Σ [(Number of Seconds) x (% of User Debt to Total Debt During the Seconds)] / Σ User Weight

Taking into account of community feedback, we decided to allocate 70% of the airdrop to recent Linear and Chaotic users. We hope this move can reward active Linear and Chaotic users by skewing the distribution favorably towards them. Having said that, users who have built debt on Linear prior to 2022 still played a crucial part to the success of Linear. So it is only fair to allocate a portion of the distribution to them even though they might no longer be actively using Linear.

Claiming Locked $ATH

One of the main reasons for conducting an airdrop to Linear and Chaotic users is to encourage them to build debt and trade synthetic assets on Athos Finance. With that in mind, we have tailored our airdrop claiming mechanism to achieve that purpose.

Users can claim their locked $ATH in five equal tranches over time. While users can make use of the locked $ATH immediately to build debt and start trading on Athos Finance, they are unable to withdraw until vesting begins. The first 20% of locked $ATH is available at TGE, while subsequent four tranches are available for claiming every four weeks thereafter. In other words, users can claim 20% of the allocation at TGE and 20% each after Week 4, Week 8, Week 12 and Week 16. Each tranche has a claim period of four weeks. Any unclaimed tokens will be returned to the foundation for future use.

Vesting

Locked $ATH begin vesting 53 weeks (~1 year) after the beginning of each claim period. Tokens are vested over 104 weeks (~2 years) linearly. In other words, the first tranche of locked $ATH begins vesting at Week 53, and then subsequent tranches begin vesting at Week 57, Week 61, Week 65 and Week 69.

The following table sums up the schedule for airdrop claiming and vesting:

After considering all the potential solutions, we believe the above mechanism can best align the interest of all parties involved. While active users of Linear and Chaotic are getting airdrop to utilize the platform, they are also invested into the longer term success of the project.

In the coming weeks, we will announce our TGE date as well as to release a tutorial which outlines the airdrop claiming process.

While the final airdrop amount for each address is not announced yet, as long as you have built debt at some point on Linear (on or before May 31) or Chaotic, you should be eligible for an airdrop and also the NFTs (The Trident & The Bow). So don’t forget to claim your NFTs when minting begins!

Finally, if you are looking for another clue in our NFT Treasure Hunt, here you go! Artemis was known as the goddess of wild animals, wilderness, childbirth and virginity. She was often depicted as a huntress carrying a bow and arrow.

About Athos Finance

Athos Finance is the first decentralized delta-one asset protocol on Moonbeam. It provides users with on-chain price exposure through synthetic assets with infinite liquidity and no slippage.

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