Rival blockchain communities are fighting over how Solana-based decentralized exchange aggregator Jupiter allocated JUP tokens for an airdrop earlier this week.
Posted on February 1, 2024 at 5:58 PM EST.
Ethereum enthusiasts and Solana believers have been exchanging insults over one of the key mechanisms used in Solana-based decentralized exchange aggregator Jupiter’s airdrop.
Jupiter’s LFG Launchpad is a portal where traders can apply for airdrop distribution and utilize services that facilitate trading of newly minted tokens. In the JUP airdrop example, Jupiter traders can request a JUP airdrop allocation in addition to acquiring more tokens at launch by pre-configuring limit orders or dollar-cost averaging functions.
As traders acquire more tokens through Jupiter’s LFG Launchpad, they will tap into a one-sided liquidity pool that initially only had JUP. Once the airdrop started, a trader could withdraw her JUP from the pool and deposit USDC.
read more: Jupiter traders claim a whopping 545 million JUP tokens in first 8 hours of airdrop
According to a forum post, out of JUP’s total token supply of 10 billion JUP, the Jupiter team has allocated 250 million JUP to the one-sided liquidity launch pool and 100 million JUP to launch pad fees. written Details of JUP’s token generation event by Meow 2 days ago.
This means that traders purchasing tokens through Jupiter’s Launchpad infrastructure are acquiring JUP directly from the 250 million pot that the Jupiter team has allocated to the liquidity pool on the airdrop launch page.Thursday is Meow Said X says Jupiter’s core members plan to incorporate USDC and JUP into a liquidity pool within a week and place the funds into the team’s treasury.
Furthermore, 75% of the 100 million JUP allocated for LFG launch pad fees will be allocated to the future JUP DAO, and the remaining 25% will be allocated to the Jupiter core team.
While those in the Solana ecosystem praised Jupiter and its founder Meow for how Jupiter’s core members designed and executed the airdrop, Solana’s rivals, members of the pro-Ethereum camp, He had harsh words for exchange aggregators.
Ethereum crowd points
Critics cite two elements of Jupiter’s airdrop infrastructure as examples of Jupiter and its founder Meow. That means the team has his 250 million JUP tokens to sell and the Jupiter ecosystem keeps his 100 million JUP token fees on launches on its own launchpad. is.
Ethereum enthusiasts have expressed concern that the Jupiter team is selling tokens to the public through the token launch pool shortly after the airdrop goes live. Strategic advisor for liquid staking provider Lido and Ethereum research company Flashbots, also known as “Has” Said X says that Jupiter’s sale of 250 million JUP tokens for stablecoin USDC is a “truly noteworthy stain” and “textbook stuff”.
Regarding the launchpad fee of 100 million JUP tokens that will ultimately go into the pockets of the JUP DAO and core team, Paul Dylan Ennis, a lecturer in the School of Business at University College Dublin and author of Ethereum culture, said: . Said In X, “Now Solana’s ICO era is complete garbage.”
Solana Cloud backlash
Jupiter’s defenders claim that information about the 250 million JUP tokens for the launch pad’s liquidity pool and 100 million JUP tokens for the launch pad fee has been publicly accessible for months. There is.
Mike Dudas, general partner at Sixman Ventures, expressed cynical outrage about Jupiter’s transparency. “I am extremely upset that @weremeow and @JupiterExchange launched their tokens the way they said they would after months of sharing their excruciatingly detailed methodology across numerous channels of communication.” he said. share At X.
read more: Jupiter Airdrop Token JUP Debuts with Market Cap of $878 Million
Solana enthusiasts also took the opportunity to use ad hominems to slam Ethereum supporters.One of his X users tweeted about the Jupiter controversy Said“0xdumbass.eths is crying – that’s what they do – ignore it.” Another Said“ETH Maxis can cry all he wants and make baseless statements… No wonder there are haters.”
Nya defended Jupiter’s decision to allocate 250 million JUP tokens within Launchpad’s liquidity pool. “In this way, airdrop recipients always have a huge pool to sell from, while prospective buyers experience significant selling pressure from airdrops that instantly cause massive cancellations.” You can be confident that there is a large pool to absorb,” Nya writes in X.
Rivalry going back many years
The exchange between Solana and Ethereum supporters is the latest development in the race between the two blockchain networks. For years, people have been calling Solana the “Ethereum killer,” even though Ethereum was the incumbent leader in blockchain networks with smart contract capabilities. Solana has historically lagged behind Ethereum, and the collapse of cryptocurrency exchange FTX caused it to fall further behind, but in recent months Solana has made a comeback. It has successfully countered Ethereum’s dominance in several metrics, including a vibrant memecoin ecosystem and trading volumes on decentralized exchanges.