Drift DAO Foundation will now fulfill the fundamentals of decentralization. It has announced rolling out 1 billion DAO and DRIFT governance tokens in the next 5 years. This aligns with the mission of strengthening DeFi over CeFi. This will empower community members to the extent to which they will have their say about the protocol and its future roadmap. The ideal goal is to engage all loyal members; however, the doors would eventually open up for other members.
The Foundation has chosen to roll out its DAO and governance token 3 years after its launch because it now houses a strong community of over 175,000 traders with more than $20 billion in cumulative volume. This is a vast improvement from the beginning when the community barely had 100 active daily traders and a TVL of around $1 million; it has now stretched to $350 million.
Members of the Drift community will have a direct influence over how the Foundation moves. Empowering the users has also been cited as the primary goal of introducing DRIFT tokens. More than 50% of the total circulation will be allocated to the community. It will further be utilized to develop the ecosystem and boost trading rewards, which ultimately benefit the community.
Protocol development is said to receive an allocation of 25%, followed by a strategic partnership with 22%. Tokens will be distributed over the next 5 years, subject to changes the ecosystem may announce via its official channels.
The launch is said to be a multi-branch DAO. It consists of Realms DAO, Security Council, and Futarchy DAO.
Realms DAO is responsible for the overall development of the protocol on top of electing a Security Council. Development, here, entails maintaining high-speed operations without any impact on the nature of decentralization. Security Council monitors and supervises risk parameters, updating them from time to time and underlining the maintenance of margin ratios and program upgrades.
Futarchy DAO takes a futuristic approach. It essentially funds projects related to the ecosystem directly related to Drift. The decisions it takes are based on the time-weighted average prices of a conditional market.
As for allocation to community and ecosystem, the share of 53% is split into 43% plus 10%, wherein 43% is linked with ecosystem development and trading rewards, and the remainder is dedicated to airdrop launch.
Notably, airdropping is the next step for the Drift DAO Foundation. It was announced in the official announcement that the next move would be the launch of airdrops. Drift will make more details about it public through an official blog post. It will mention a claim period for eligible users to claim their DRIFT governance tokens.
Claiming DAO and DRIFT governance tokens could be subjected to eligibility criteria. It is recommended that those requirements be checked before proceeding.
