Metamask token launch will not give governance to “airdrop farmers”

Most of the Web3 projects in the crypto space are under intense pressure to launch their native tokens. Some of them have already given in to the pressure and have launched their tokens through airdrops.

However, some stand strong, and they are yet to announce such drops. One of these is MetaMask, the largest Ethereum wallet with over 30 million monthly users.

MetaMask believes in progressive decentralization

The lead of operations at MetaMask, Jacob Cantele, commented on this development, saying,

We believe really deeply in progressive decentralization and doing it over time and doing it in ways that are meaningful – and doing it in ways that are not a cash grab.

Cantele admitted that the launch of a token would be an “important aspect” in the project being community-owned. However, he did not mention when and if such a token would be launched or any financial details.

According to Cantele, while the launch of such a token was necessary, it would not make such a decision hastily and jeopardize its relationship with regulators. He also said that MetaMask would not “give governance to airdrop farmers or something like that.” “Airdrop farmers” are large investors or venture capital firms that stock up tokens before they are released to users to maximize gains.

The boom of token airdrops

Airdrops are a quick way for selected investors to earn some free tokens. Airdrops are usually done to boost decentralization. Many cryptocurrency projects are usually decentralized when starting out. However, when the project gains traction and grows in popularity, the developers can hand out governance tokens and hand over the project’s responsibility. Governance tokens give the holders voting rights.

Uniswap, one of the largest decentralized exchange (DEX) platforms in the market, released a token drop in September 2020, where 400 UNI tokens were given to those who had used the protocol previously. At the time of the airdrop, one UNI token was trading at $3. UNI gained value over the next few months and peaked at a record high of $44.97 in May last year, giving the investors that benefited from the airdrop massive gains.

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