NFT marketplace SudoSwap announced that it debuted its native governance token called SUDO with an airdrop of coins to early backers.
The move comes amid a recent resurgence in NFT trading volume after a lull that was part of a broader drop in crypto activity.
SUDO tokens are airdropped onto SudoSwap LPs
SudoSwap announced the launch of its SUDO token on Monday January 30th. The token release, updated earlier today, included an airdrop for early backers of the project.
The SUDO Airdrop will reward Liquidity Providers (LPs) on the platform. SudoSwap is a different kind of NFT marketplace than OpenSea. It’s more like an automated market-making platform like Uniswap, but for NFTs.
SudoSwap allows the creation of liquidity pools for NFTs. Hence, there are liquidity providers, users who provide liquidity in the form of NFTs and crypto tokens to enable trading and the airdrop aims to reward them.
LPs aren’t the only ones to benefit from the airdrop, as XMON holders can also qualify for the airdrop. XMON is the native token of the 0xmons ecosystem created by the SudoSwap founders and it contains an NFT collection.
XMON holders can lock up their tokens for one month to receive the SUDO airdrop. Those who do so will receive 10,000 SUDO tokens for every locked XMON coin, according to the announcement.
SudoSwap stated that the initial airdrop distribution will be non-transferrable. The Decentralized Autonomous Organization (DAO) created as a result of the token launch will vote to unlock the ability to transfer these tokens. As such, SUDO acts as the governance token of the SudoSwap DAO. Participants with up to 300,000 tokens can post governance proposals on the DAO forum.
NFT volumes are declining
The SudoSwap token launch and airdrop is the first major similar event of the year. The announcement comes at a time when the NFT market appears to have reversed the downtrend that marked most of 2022. CryptoPotato previously reported that NFT trading volume on Ethereum has increased for five straight weeks.
This surge in NFT volume also came amid a general resurgence in the crypto market as the total capitalization surpassed the $1 trillion mark. Crypto prices have also gained ground year-to-date.
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