Rune Christensen, a creator of MakerDAO, has announced an airdrop of the governance token of the Spark Protocol.
Founder of MakerDAO and stablecoin issuer Rune Christensen proposed a new governance token for the Spark lending protocol and its distribution as incentives to users, a practice known as a “pre-farming airdrop.” The proposal lays out a strategy to distribute two billion Spark (SPK) tokens over ten years to encourage users to stick around for the long haul and keep making use of the Spark Protocol.
MakerDAO has created a new lending protocol called Spark Protocol, which allows for the provision of DeFi loans via the direct procurement of liquidity from Maker. As collateral, it will take ether, staked ether, and Dai.
In MakerDAO’s long-term vision, the transition of Spark to a subDAO is a major milestone. Within MakerDAO, a subDAO will function as its decentralized autonomous organisation. The long-term goal is to build several subDAOs, similar to Spark, each with its own set of token rules.
SubDAO tokens will be given to Spark borrowers based on the total amount borrowed and the total period during which the loans were outstanding. Specifically, “we want to bootstrap a community of users and DAO participants that are aligned with the mission and potential of SparkDAO,” Christensen said.
Despite giving a 5% interest – formerly 8% — on Dai deposits, known as the Enhanced Dai Savings Rate, Christensen said that the purpose is to encourage Spark’s active use.
This week, the EDSR on Spark reached 8%, prompting large capital infusions as customers took advantage of favourable borrowing arbitrage conditions. People borrowed Dai at cheap interest rates so they could invest money in EDSR and get a better return. As Dai deposits quickly surpassed the specified amount, Christensen subsequently said that the rate will decrease to 5%.
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