Airdrops, or token giveaways, play an important role in launching DeFi products and make up 1% of Popcorn’s token allocation (1m $POP). The Bored Ape Yacht Club (BAYC) is series of 10,000 NFTs with over 187,000 eth in volume traded. This proposal is to reserve up to 5% (50,000 $POP) of the Popcorn airdrop token allocation for BAYC members in order to improve marketing, liquidity, and community-building outcomes.
NFTs can function as access passes for exclusive community platforms and events. BAYC has the second-highest trading volume of all time on OpenSea (the most popular NFT platform). Popcorn DAO members have access to BAYC token-gated platforms including Metalink, private Discord channels, and in-person events.
1m $POP tokens are currently allocated for airdrops to the greater community. Reserving up to 5% of the airdrop supply for BAYC token holders is proposed. Any allocations above 5%, or 50,000 $POP, will be preceded by an additional proposal. If approved, this proposal will result in initial steps being taken to research, plan, and implement the BAYC airdrop in the most effective way possible.
There are several challenges to conducting a successful token-gated airdrop. Care has to be taken to avoid airdrop abuse and ensure a smooth rollout. Relevant web apps such as guild.xyz and collab.land are still in beta and can be buggy. Decisions need to be made regarding what information we will ask users to submit when registering for airdrops, and time is of the essence.
The NFT market has matured to the point where many NFT collectors are looking to diversify their crypto holdings. In addition, the BAYC has donated over $850,000 to a number of charities, implying that the mission statement of Popcorn will resonate within the group. The BAYC developers have announced that they will be releasing a fungible token early next year, potentially opening the door to DeFi-NFT crossover opportunities.
Many influential members of the DeFi community are BAYC holders. Getting on their radar can accelerate Popcorn’s growth in the cryptocurrency scene. Targeting this high-value population enables Popcorn to make a greater market impact than would be possible with less precise airdrop strategies.
Counterarguments and Responses:
Isn’t this gatekeeping? Why should those with high crypto net worth be given free tokens?
The vast majority of Popcorn’s airdrops will be offered without any token gating. Community participation and genuine interest is more of a priority than any kind of token ownership. This is why only a <= 5% allocation is proposed. This investment is worthwhile because BAYC members have a famous dedication to community building and charitable giving which is compatible with Popcorn’s ethos.
Many current BAYC holders paid less than $300, including fees, to mint their apes. With a current floor value of 36 eth (≈$140,000), this has been life changing money for scores of the 5,600 ape holders.
Do NFT fans even care about DeFi?
In short, yes. The lines dividing NFTs and DeFi are increasingly blurring as NFT projects incorporate DeFi elements to offer their token holders more liquidity. NFT holders are thirsty for liquidity because for many of them, large amounts of their crypto holdings are locked up in illiquid NFTs. Moreover, NFT fractionalization and semi-fungible tokens – NFTs which have multiple (but limited) issuances – open up more possibilities to collaborate with DeFi organizations like Popcorn.
If this proposal passes, Popcorn will reach out to the BAYC core team and express an interest in collaborating. Following this, efforts will be made to connect directly with BAYC community members, especially those who show an interest in DeFi and community exclusives. These conversations will assist in determining the best way to execute the BAYC airdrop.
- Investment: up to 50,000 $POP tokens
- Return: targeted outreach to a community with demonstrated interest in charitable giving, community building, and innovative token strategies
- Yes, airdrop $POP tokens to the Bored Ape Yacht Club
- No, don’t airdrop $POP tokens to Apes