KEY TAKEAWAYS
- Puffer introduces the CARROT token in its Season 2 airdrop, enhancing decentralization and sustainability through on-chain rewards.
- Participants can earn CARROT tokens by staking PUFFER, voting in governance, and providing liquidity, transitioning from off-chain points to on-chain incentives.
- The governance framework, developed with Aragon, empowers users with vePUFFER NFTs, aligning rewards with community priorities through bi-weekly voting.
- Puffer’s governance system will transition to full on-chain voting, with CARROT tokens serving as claim tickets for future PUFFER tokens.
Puffer has announced a new points distribution method as part of its Season 2 airdrop campaign, aiming to enhance decentralization and sustainability through community governance and tokenized incentives. The update, which officially launched on October 5, 2024, introduces the CARROT token, replacing off-chain points with on-chain rewards. This initiative follows the successful conclusion of the ‘Crunchy Carrot Campaign’ and marks a significant step in Puffer’s journey towards a more decentralized protocol.
During Season 2, participants can earn CARROT tokens through activities such as staking PUFFER, participating in governance voting, and providing liquidity. Initially, off-chain Puffer Points are distributed similarly to Season 1, but these will later be converted into on-chain CARROT tokens based on the prevailing emission rate. This transition reflects Puffer’s commitment to full on-chain governance and enhanced transparency, eliminating points dilution.
Community-Driven Governance and Incentives
Puffer’s governance mechanism has evolved to support the updated Season 2 structure, introducing a more dynamic and participatory model. The Puffer Governance Gauges will determine how incentives are directed to various protocols, DeFi integrations, or pools where on-chain CARROT tokens can be earned. These tokens will be convertible to PUFFER tokens after Season 2, further integrating community-driven decision-making into the ecosystem.
The governance framework, developed in collaboration with Aragon, empowers long-term participants by allowing them to stake PUFFER tokens and mint vePUFFER NFTs. These NFTs accrue voting power over time, incentivizing sustained engagement while offering flexibility to unstake at any time. The introduction of gauges, which are locked for each epoch, ensures consistent distribution cycles and aligns rewards with community priorities through bi-weekly voting.
Transition to On-Chain Voting
Puffer’s updated governance system initially relies on snapshot voting before transitioning to full on-chain voting, streamlining the user experience. The CARROT token, central to these updates, serves as a claim ticket for future PUFFER tokens. Incentive gauges will be voted on bi-weekly, with reward incentives distributed daily based on community voting outcomes. For instance, if a gauge receives 30% of votes, the relevant pool will receive 30% of that week’s CARROT rewards.
The first epoch voting round is set to commence on January 16th, 2025. Participants are encouraged to stake their PUFFER tokens ahead of time due to a three-day warm-up period. This strategic move underscores Puffer’s dedication to building a decentralized ecosystem, empowering participants to control rewards and enhance incentive distribution.
For more details on Puffer’s Season 2 updates, visit the official announcement here.
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