The NFT marketplace Sudoswap has introduced a new token to support the project’s transition to a decentralised autonomous organisation, a framework in which a community of users may collaboratively make business decisions.
Today, the Sudoswap team revealed that SUDO tokens would be used for marketplace management. The company is decentralising the system to its community, a process that often necessitates a cryptocurrency token.
Sudoswap is an emerging NFT marketplace with an automated market maker (AMM) approach, comparable to Uniswap. Using liquidity pools, this method facilitates immediate asset exchanges.
On Sudoswap, any user is able to design an NFT pool from a specific ether-connected collection. These pools provide NFT buyers and sellers immediate ETH or NFT-to-ETH exchanges, as well as trading quotes.
The total number of SUDO tokens will be 60 million, of which a portion will be distributed as an airdrop to the project’s early contributors and holders of XMON tokens, as described below.
Additionally, the Sudoswap team announced a retroactive airdrop for its liquidity providers (LPs) or users who have deposited NFTs and ether to its pools. These LPs will get a 1.5% allocation of SUDO, distributed evenly.
15% (9 million) of the SUDO supply has been set aside for first team members based on the allocation. The remaining 15% will be allocated to SudoRandom Labs, the project’s primary development business. These coins will be subject to a three-year vesting period and a one-year cliff for team members and SudoRandom Labs.
The last group that will get tokens is the project’s treasury, which will receive 25.1% or 15.08 million tokens. Community members will administer this money for development and expansion efforts. Currently, SUDO tokens cannot be claimed and will only become available following a future governance vote.
The action of today makes Sudoswap the most recent cryptocurrency project to create its own coin with a retroactive incentive. Other companies, like Optimism, CowSwap, and Hop Bridge, have introduced governance tokens and airdrop plans for early adopters this year.