Hop Protocol, an Ethereum-based multi-chain bridge, introduced a new governance token with the ticker HOP and an airdrop for early adopters in an official statement on Thursday.
Hop DAO, a decentralized autonomous organization, will be formed as a result of the token launch.
Hop is a well-known cross-chain bridge that connects Ethereum to other EVM-compatible blockchains. The bridge allows Ethereum users to send money between the Polygon and Gnosis sidechains, as well as several Layer 2 networks like Arbitrum and Optimism. Since its inception in 2021, the Hop bridge has handled over $2 billion in cross-chain transfers.
Hop is the latest cryptocurrency project to launch its own coin, complete with a retroactive reward for early adopters. Other projects, such as Optimism, CowSwap, and Connext, have also announced governance tokens as well as airdrop plans for early adopters this year.
Getting rid of airdrop farmers
Hop distributed 8% (80 million tokens) of the entire 1 billion HOP supply to the airdrop across several user groups. A total of 3.35 percent of the total (33.5 million tokens) was made aside for early bridge users.
Nonetheless, not everyone made the cut. According to an official Twitter post, bridge users were individuals who have transported more than $1,000 between chains and completed more than two transactions. This included 43,000 Ethereum addresses that the team had registered prior to Thursday.
While this stringent criterion excluded many bridge users from the airdrop, the Hop creator stated that it was necessary to eliminate airdrop farmers, sometimes known as “sybil attackers.” Airdrop farmers use DeFi products in small amounts from several wallets in anticipation of receiving later rewards.
“We set the criteria as low as we possibly could. There were way too many Sybil attackers in the $500 to $1000 range to handle and would have resulted in no one getting a good drop except for the bot farms,” Hop Protocol’s founder Chris Whinfrey said on Twitter.
Only 4.65 percent of the airdrop (46.5 million tokens) went to liquidity providers, “bonders” who locked funds into the bridge for a year, and other early backers.
Aside from the initial airdrop, 92 percent of the tokens (920 million) will be allocated for diverse uses to fund the bridge’s activities in the future years.
The Hop DAO’s treasury received 60.5 percent of the HOP token supply, while the initial development team received 22.5 percent. According to the Hop team on Twitter, the remaining 9 percent will be used to hire future team members and investors.