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Drift Protocol, a Solana-based decentralized exchange (DEX), plans to launch a governance token called DRIFT and airdrop the asset to its users in the coming weeks, according to information available on the Drift website and people familiar with the matter.

The new token follows a three-month points program that has attracted traders, borrowers, lenders and, of course, “airdrop hunters” to Drift. However, the protocol’s contributors have stated that the majority of the 100 million tokens earmarked for this airdrop will go to Drift’s long-time users.

Airdrops, in the world of cryptocurrencies, refer to the free distribution of tokens or coins to individuals.

Drift is the latest Solana protocol to attempt to decentralize its operations, creating a token whose holders can vote on key decisions on the exchange. This includes, for example, voting on which tokens to list or when to update software. In this airdrop, 10% of the total supply of DRIFT will go to users.

Solana DEX Token Airdrop

According to the DEX team, venture capitalists will receive a much larger DRIFT allocation: 22%. Another 43% of the tokens will go towards “ecosystem development,” which could include trading rewards, liquidity incentives, and future airdrops.

And 25% of the tokens will go toward “protocol development” payments to Drift contributors, according to the Drift website.

The developers of the Drift protocol want the trading service to become a one-stop shop for cryptocurrency investors on Solana. Its main product is perpetual trading for price speculators to long and short cryptocurrencies with leverage of up to 20x.

Additionally, Drift hosts spot trades and a variety of exotic financial instruments that give investors exposure to high-risk, high-return plays. Its newest product allows traders to stake tokens that have not yet been released.

According to the announcement, control over Drift will shift from Drift Labs to a three-pronged governance structure. At the top is a security council that will exercise update authority over the protocol, essentially daily control. The members of this board, at least initially, will come from within Drift. They will need approval from Drift’s “Realms DAO,” where token holders have voting rights.

A third pillar of Drift governance, the Futarchy DAO, will operate much like MetaDAO. In short, traders here will be able to make decisions by placing bids for or against the price of the DRIFT token in a pair of conditional markets.

The winning market is the one that ends with a higher price: its trades are settled (those in the losing market reverse) and the associated decision is executed.

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