Overview of the latest information on Sanctum tokens and airdrops

Author: Azuma, Odaily Planet Daily

On June 5th, Beijing time, the Solana ecosystem LST staking protocol Sanctum officially announced the basic information regarding its token economic model and explained some details about the points activities and airdrop plans through a subsequent community AMA.

As the top project in the second phase of the Jupiter LFG Launchpad voting, Sanctum has maintained high community attention within the Solana ecosystem. Over the past month or two, Sanctum has achieved significant data growth propelled by the first season points activity, Sanctum Wonderland S1. As of the time of writing, the TVL is reported at $1.03 billion, making it the fourth-ranked DeFi protocol in the Solana ecosystem by TVL.

Project Overview

In April, Sanctum announced the completion of its seed round expansion financing, led by Dragonfly, with participation from Sequoia, Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, Marin Digital Ventures, and others. Although the amount of this round of financing was not disclosed, Sanctum revealed that the total financing amount for the project has reached $6.1 million.

Unlike conventional liquid staking protocols, Sanctum's approach is more akin to helping Solana build a more unified liquid staking paradigm to address the current liquidity fragmentation issues among various liquid staking tokens (LSTs) within the Solana ecosystem, such as Sanctum's own INF, jitoSOL, mSOL, bSOL, and others.

By constructing a unified liquidity layer around the liquid staking scenario, Sanctum can leverage multiple modules, such as Reserve (which supports instant unstaking services for all LSTs), Router (which supports the conversion between two LSTs that typically have no trading path), and Infinity (which supports conversions among all LSTs), to help users achieve rapid, lossless redemptions or convert among various LSTs with minimal slippage.

Token Economic Model

Last night, Sanctum's founder FP Lee disclosed the project's token economic model.

The protocol token of Sanctum will be named CLOUD. In addition to basic governance utility, FP Lee mentioned that potential partners might need CLOUD to qualify for Sanctum's validation program, adding a certain practical value to CLOUD.

The total supply of CLOUD will be 1 billion tokens, with the following specific allocation:

• Community Reserve 30%: The community reserve should be strategically used to expand Sanctum's market share, and the community will ultimately decide how to use this reserve.
• Strategic Reserve 13%: The team will use this reserve to develop the Sanctum ecosystem, such as for future acquisitions, strategic investments, ecosystem partnerships, donation programs, market making, etc.
• Team 25%: Locked for one year, then released linearly over 24 months.
• Investors 13%: Sanctum previously sold some tokens at valuations of $50 million and $60 million, mostly sold in 2021. This portion of tokens will also be locked for one year, then released linearly over 24 months.
• Initial Airdrop 10%: To be distributed to the community at the CLOUD TGE.
• LFG Launch 8%: To inject initial liquidity for CLOUD in Jupiter's Launchpad.
• LFG Donation 1%: This portion will be donated to Jupiter LFG, which typically airdrops to LFG voting participants.

In terms of circulation, CLOUD can achieve a maximum initial circulation rate of 18% at the beginning of the TGE, which includes 10% of the initial airdrop share and 8% of the LFG Launch share, but any unsold tokens in the Jupiter Launchpad will revert to the strategic reserve.

Points Activity

Currently, Sanctum's first season points activity has officially concluded, attracting participation from over 300,000 addresses.

However, some details regarding the first season points activity are still pending confirmation, including the utility information of "cupcakes" and the final points situation for users. Sanctum stated that it is still finalizing the statistics, so the scores displayed on the front end may vary slightly.

As for the second season activity, FP Lee's original plan was to launch it immediately after the first season ended, but later decided to postpone it to provide users with a different participation experience and to allow for richer design. There is currently no specific information on the launch time for the second season, but it is confirmed to be after the TGE.

Airdrop Plan

Currently, the confirmed information regarding the airdrop is that 10% of CLOUD tokens (100 million tokens) will be distributed to participants of the first season activity. FP Lee also revealed that there will be a certain "witch screening" to distinguish between "farmers" and "true believers."

As for when the TGE and airdrop will occur, there is currently no specific timeline; the official only mentioned that they will disclose airdrop eligibility and open for claims in the coming weeks.

Additionally, it is worth mentioning that although the 10% of CLOUD allocated for the initial airdrop is included in the initial circulation range, FP Lee also mentioned that there may be additional rules designed for specific claims to ensure that "true believers" have a certain liquidity advantage—such as setting 50% of the airdrop share to be unlocked immediately, with the remaining portion unlocking within 7 days—though this plan is still to be confirmed.

Where to Trade?

In addition to the airdrop, another direct channel to acquire CLOUD is by participating in Jupiter's LFG Launchpad.

A total of 8% of CLOUD will be injected as initial liquidity into the Jupiter Launchpad pool. FP Lee mentioned that the initial price curve for CLOUD will start with an FDV of $50 million, which is quite attractive.

Furthermore, FP Lee emphasized that they will not pay listing fees to any centralized exchanges (CEX), as "he would rather give that money to the community."

In summary, FP Lee stated that they welcome CEXs to choose to list CLOUD proactively but will not pay for it. This may lead to CLOUD temporarily not being listed on more mainstream CEXs at the beginning of the TGE, making the on-chain market the main battleground for CLOUD.