Airdrop
To incentivize the migration from L1 Fuse Network to the new L2 Fuse Ember chain, Fuse will be airdropping a total of 10.4 million FUSE tokens to different platform stakeholders. The airdrop will include four phases, with tokens being distributed using a points system for users and developers:
Phase 1: User-focused quests focusing on the existing L1 Fuse Network. 2.08 million FUSE (20% of total airdrop reward allocation).
Phase 2: Developer-focused airdrop. 3.12 million FUSE (30%).
Phase 3: User-focused quests on the L2 Flash Network. 1.04 million FUSE (10%).
Phase 4: FUSE token migration incentive. 4.16 million FUSE (40%).
Airdrop Distribution: Vesting And Burning
For the user-focused airdrop phases #1 and #3, a system of vesting and burning has been designed to prevent the sudden release of large amounts of FUSE into the circulating supply, which could create downwards pressure on the token price.
On the first day of the airdrop, 25% of a user's token allocation will immediately become available. Users can claim this 25% immediately. The remaining 75% is vested over 270 days. Users can choose when to claim the rest of their allocation. However, claiming before the end of the 270-day term will cause a percentage of tokens to be burned, and the earlier they claim, the larger the burned percentage will be.
This motivates recipients to increase their on-chain activity while waiting longer to claim their airdrop. It also penalizes those who decide to claim their airdrop before it fully matures.
| Day | Burn Amount |
|---|---|
| 0-30 | 100%-88.9% |
| 31-60 | 88.9%-77.8% |
| 61-90 | 77.8%-66.7% |
| 91-120 | 66.7%-55.6% |
| 121-150 | 55.6%-444% |
| 151-180 | 44.4%-33.4% |
| 180-210 | 33.4%-22.3% |
| 211-240 | 22.3%-11.2% |
| 241-270 | 11.2%-0% |
Examples
- Mark has been allocated a total of 1,000 FUSE tokens in the Fuse Ember airdrop. He can claim 25% of his tokens (250 FUSE) at any time, and does so immediately. After 180 days have passed from the start of the airdrop, Mark decides he wants to access the rest of his airdrop allocation. He is able to receive 66.6% of his remaining allocation of 750 FUSE, while the remaining 33.3% are burned. He therefore withdraws 499.5 FUSE, with the remaining 250.5 FUSE being burned.
- John has been allocated 10,000 FUSE tokens in the Fuse Ember airdrop. He claims his 25% allocation of 2,500 FUSE straight away, and decides to access the remaining portion on day 60. John is therefore able to claim 22.2% of the balance, or 1,665 FUSE. 5,835 FUSE are burned.