$PSTAKE Airdrop Explained

Mikhil Pandey
Sep 17 · 7 min read

TL;DR

  • pSTAKE’s governance token, $PSTAKE, will be distributed to key stakeholders within the pSTAKE ecosystem
  • 6% of the total $PSTAKE genesis supply will be distributed, based on the snapshots taken on 1200 HRS UTC, 2nd September 2021
  • 55% of the total airdrop allocation will be distributed to eligible holders and stakers of ATOM & XPRT using a fairdrop mechanism
  • 2.5% of the total airdrop allocation will be equally distributed amongst all eligible early adopters of the pSTAKE protocol
  • 25% of the total airdrop allocation will be distributed to eligible users of specific DeFi protocols (SushiSwap, Curve Finance, and Aave)
  • 1.67% of the total airdrop allocation will be distributed to our Cosmos StakeDrop campaign participants, with 0.125% additional tokens distributed to those who delegated with AUDIT.one during the StakeDrop
  • 15.83% of the total airdrop allocation has been set aside in a Strategic Reserve

With the launch of pSTAKE’s governance token, $PSTAKE, we recently announced a retroactive token airdrop to the critical stakeholders within the protocol’s ecosystem to ensure alignment of incentives and foster long-term growth of the protocol.

You can learn more about $PSTAKE’s token utility, value accrual, and the critical stakeholders in our previous article here.

pSTAKE will allocate 6% of the token’s total genesis supply for various airdrops to be distributed based on the snapshots taken on 1200 HRS UTC, 2nd September 2021.

This article will further expand on the details of the $PSTAKE airdrop campaign, focusing on the distribution mechanism.

Cosmos Ecosystem

55% of the tokens allocated for the airdrop will be distributed to the Cosmos community, which includes both holders and stakers of ATOM and XPRT.

XPRT and ATOM holders and stakers will be incentivized via a fairdrop mechanism (inspired by the OSMO fairdrop carried out by Osmosis) to ensure fair distribution of the allocated tokens and prevent potential centralization with large token holders.

The amount of $PSTAKE to be received by each address will be proportional to the square root of its total XPRT or ATOM balance at the snapshot time, with a special multiplier for unstaked ATOM and unstaked XPRT. This multiplier encourages holders of unstaked coins to actively participate in securing the underlying network by staking their unstaked assets through pSTAKE instead of simply holding them.

ATOM Holders and Stakers

For an ATOM holder to be eligible to receive the airdrop, they must have a total balance of at least 100 ATOM in their wallet. Furthermore, we have implemented a max cap of 2000 ATOM per wallet; thus, a maximum balance of 2000 ATOM will be considered while calculating the eligible airdrop amount. The multiplier for unstaked ATOM balances for eligible wallet holders is set to 2.

The eligible airdrop amounts for ATOM holders and stakers will be calculated based on the following fairdrop formula:

XPRT Holders and Stakers

For an XPRT holder to be eligible to receive the airdrop, they must have a total balance of at least 100 XPRT in their wallet. Furthermore, we have implemented a max cap of 10000 XPRT per wallet; thus, a maximum balance of 10000 XPRT will be considered while calculating the eligible airdrop amount. The multiplier for unstaked XPRT balances for eligible wallet holders has been set to 2.5.

Note: All constants in the above formulae have been derived to ensure fair allocation of the allocated airdrop amount amongst the eligible wallet owners.

Claiming the Fairdrop

Since $PSTAKE is an ERC-20 token, all eligible XPRT and ATOM holders will have to provide their Ethereum wallet addresses by sending a ‘Magic Transaction’ from their wallets through our airdrop claim webpage. Airdrop recipients can also check their eligibility and the number of $PSTAKE they would receive at TGE, here.

We will be sharing a tutorial covering the claim process shortly.

Note: Cosmos Hub and Persistence Vesting accounts are not eligible for the airdrop.

pSTAKE Early Adopters

pSTAKE’s early adopters have played a vital role in providing the application with the necessary head start for its long-term growth. $ PSTAKE airdrops will reward these early adopters for their belief in the protocol.

A sizable portion of the allocated amount, 2.5%, will be equally distributed amongst all eligible early adopters of the protocol. All Ethereum wallet address holders with at least 10 stkATOM in their wallets at the time of snapshot will be eligible to receive the airdrop. The $PSTAKE amount will be dropped into eligible wallets at the time of distribution post TGE.

Rewards = ($PSTAKE Allocated for the category) / (number of eligible wallets)

DeFi Power Users

25% of the airdrop allocation will be distributed to eligible users of specific DeFi protocols to attract an active user base within the Ethereum ecosystem onto the pSTAKE application and pave the way for leveraging potential future synergies with said DeFi protocols. We will drop the $PSTAKE amount into eligible wallets at the time of distribution post TGE.

Rewards = ($PSTAKE allocated for the category) / (number of eligible wallets)

Details of the protocols selected and the respective eligibility criteria for each user base can be found below:

Airdrop for DeFi users

StakeDrop Participants

A total of 1.67% of the allocated airdrop amount has been designated to reward all Cosmos (ATOM) stakers who participated in our Cosmos StakeDrop campaign. 0.125% of $PSTAKE tokens will be dropped exclusively to all the Cosmos StakeDrop participants who staked their assets through Persistence’s validator arm, AUDIT.one with the remaining 1.545% being distributed across all stakedrop participants.

The $PSTAKE amount will be distributed equally to eligible wallets at the time of distribution without the need for any additional steps from the participants.

This is a step towards incentivizing early and long-term participants of the Persistence ecosystem to keep contributing towards its growth. With every such step, we aim to build a stronger community that collectively supports the growth of the ecosystem and together reaps the benefits.

Strategic Reserve

15.83% of the allocated airdrop amount has been set aside in a Strategic Reserve intended to incentivize users of DeFi protocols that are identified as strategic partners in the future, who will help further the growth of the pSTAKE protocol. Details of allocations from the Reserve will be shared in the future.

About pSTAKE

pSTAKE is a liquid staking solution that unlocks the potential of staked PoS assets (e.g. ATOM). PoS token holders can deposit their tokens on the pSTAKE application to mint 1:1 pegged ERC-20 wrapped unstaked tokens, which are represented as pTOKENs (e.g. pATOM) that can then be transferred to other wallets or smart contracts on the Ethereum network to generate additional yield.

Currently, pSTAKE issues 1:1 pegged ERC-20 liquid staking representative tokens on the Ethereum network, with a long-term aim of building a multi-chain protocol issuing liquid staked representatives on multiple networks including the Persistence Core-1 chain.

We have a bag full of new features and an exciting roadmap for the coming months, so follow pSTAKE on Twitter and hop onto our Discord channel to stay up-to-date with the latest developments.

Developed by Persistence

Persistence is enabling exposure to multiple asset classes such as Liquid Staking (pSTAKE), NFTs (Asset Mantle), and Synthetics (Comdex). Persistence ecosystem products are designed to stimulate global liquidity and enable seamless value exchange.

Persistence’s Core mainnet is a Proof-of-Stake chain powered by Tendermint BFT consensus engine. Persistence’s multi-chain tech stack (currently supporting Cosmos, Ethereum, and other Tendermint-based chains) abstracts away the complexities for developers and enables them to create DEXs, marketplaces, lending/borrowing platforms, etc.

Twitter | LinkedIn | Telegram | YouTube | Reddit | hello@persistence.one

pSTAKE

Unlocking the liquidity of staked assets

pSTAKE

Securely stake your assets to earn staking rewards and receive 1:1 pegged staked representative tokens which can be used in DeFi to generate additional yield.

Mikhil Pandey

Written by

Strategy and BD @ Persistence One

pSTAKE

Securely stake your assets to earn staking rewards and receive 1:1 pegged staked representative tokens which can be used in DeFi to generate additional yield.