MakerDAO Reveals SPK Token Airdrop Plan for Spark Protocol

Rune Christensen, the founder of MakerDAO, has announced an airdrop for the lending protocol Spark Protocol, proposing the distribution of 2 billion Spark (SPK) tokens over 10 years.

SPK Token Airdrop Plan:

• Objective: The proposal aims to incentivize long-term user participation in Spark Protocol through a "pre-farming airdrop" of the new governance tokens.
• Distribution Plan:
  • Total Tokens: 2 billion Spark (SPK) tokens will be distributed over 10 years.
  • First Two Years: An initial farming rate of 500 million tokens per year, with 350 million tokens allocated to farmers generating NewStable profits and 150 million tokens to those generating NewGovToken profits annually.
  • Next Two Years: From the third to fourth year, the farming rate will be reduced to 250 million tokens per year, with 175 million tokens for NewStable profits and 75 million tokens for NewGovToken profits annually.

Spark Protocol Overview:

• Launch: Spark Protocol, a lending product branch developed by MakerDAO, went live in May 2023. Its initial product, Spark Lend, provides DeFi loans by sourcing liquidity directly from Maker, accepting assets like ETH, staked ETH, and DAI as collateral.
• Goal: The project aims to promote wider adoption of the stablecoin DAI across DeFi ecosystems.

User Incentives:

• Distribution Criteria: SubDAO tokens will be distributed to Spark borrowers based on the amount and duration of their loans using various collateral assets.
• Community Building: "We aim to kickstart a community of users and DAO members aligned with the mission and potential of SparkDAO," said Christensen.

Endgame Plan:

• SubDAO Structure: MakerDAO’s Endgame plan involves breaking down the current DAO structure into smaller entities called SubDAOs, which are independent decentralized autonomous organizations within MakerDAO. Each SubDAO will self-govern and sustain itself, with its own tokens within the MakerDAO ecosystem.

Additional Proposals:

• General Farming Proposal: Alongside the SPK airdrop, Christensen proposed a general SubDAO farming plan, aiming to establish an economic model for the second phase to further incentivize Spark Protocol usage.

The SPK token airdrop plan reflects MakerDAO’s strategy to enhance user engagement and drive the adoption of Spark Protocol, thereby strengthening the ecosystem’s stability and growth. The integration of SubDAOs and strategic token distributions are poised to foster a robust and dynamic community around MakerDAO’s innovative DeFi solutions.