Sudoswap announces its new governance token
Sudoswap announced the launch of its new governance token on 31st Jan 2023 through its Twitter handle.
Division of the loot
Sudoswap opened the lock drop and airdrop and provided links to the public through their Twitter account. Additionally, $SUDO holders are allowed to participate in governance using frontends through a link. The NFT Automated Market Maker (AMM) protocol published the outline of its SUDO governance token.
The initial token supply will go up to six million tokens. 41.99% of the total tokens will be allocated through a lock drop event to users with XMON, the utility token behind NFT project Oxmons. An additional 1.5% will be given to users with the GAN-created 0xmon NFTs.
In the ultimate breakdown, 1.5% of the total tokens are allocated as a retroactive airdrop to trade pools liquidity providers. Another 1.5% is allocated to Oxmons NFT holders, while 41.9% is allocated to XMON token holders, at a 10,000 SUDO per 1 XMON locked rate, for those who participate in a lock drop rate. 15% of the supply will go to the original team members, another 15% to SudoRandom Labs, and the remaining 25.1% to the treasury.
The governance will initially be non-transferrable, but a formal governance vote can activate the transferability. SUDO will govern the sudoAMM protocol through an on-chain OpenZeppelin Governor module.
Sudoswap tweeted that through on-chain proposals, holders can vote adjustments on:
- New routers addition
- the fee switch
- External contracts pool whitelisting
- Adding new bonding curves
Users with a minimum of 300,000 SUDO delegated can make on-chain proposals to the governance module. Most votes can be executed after a 2-day voting delay, a 3-day voting period, and proposals with at least 2.4M SUDO.
$XMON’s holders can lock their tokens for one month from the deployment of their contracts to demonstrate their intent to participate in sudoAMM governance. 0xmons got to the part early partly because of their responsibility in developing the Sudoswap NFT marketplace.
The locking period has been reduced from three months. The lockers will then receive 10,000 SUDO per XMON. SudoAMM LPs and 0xmons NFT holders are the other early trade pool parties eligible for a SUDO airdrop.
The automated market maker
Sudoswap is an automated NFT marketplace and platform that offers self-regulatory and autonomous trading methods. The Sudoswap AMM is outstanding as it manages to combine different token pairings using NFTs in the same way as Uniswap pools.
The AMM’s principal advantage is to allow traders to actively and safely buy and sell NFTs. The traders can opt to form pools of all their images instead of listing all five at the floor price. The pools will reflect the demand of the NFT collection and set the price for each piece accordingly.
Alternatively, the trader can use a strategy similar to dollar-cost averaging by launching buy-only pools that only purchase NFTs. The only downside of using this AMM platform type is the susceptibility to artists not getting paid for their art. The detractors have, however, not deterred artists and NFT traders from using the platform.
