FOT Airdrop incoming.
The Juno community has a new airdrop coming to it. FOT is already available, and JUNO stakers who voted on JUNO Prop 14 can claim their first FOT token. If you are interested in learning more about the project, here is the whitepaper, if you do figure it all out, please give me a TLDR on it. Anyway, 1 FOT is currently available now if you voted on Prop 14, and the airdrop for JUNO stakers will be distributed weekly as 11.1 FOT per week from today through to 8 August.
FOT airdrop explained.
Firstly, there is a 1 FOT drop available if you voted on JUNO prop 14. Visit the app, and in particular the airdrop tab to see if you qualify. The site will prompt you to add the tokens to your JUNO wallet on Keplr. As with many of these drops, I have no idea how to do it, or if it works for Keplr + Ledger combinations.
If you had JUNO staked at the Moneta upgrade, which was December 15th last year, then you will also qualify for the main part of the airdrop. This will be a total of 222 FOT, released as a weekly drop of 11.1 FOT each week starting today. All wallets that qualify (not sure what the minimum stake was tbh) get the same drop. There will also be another airdrop for ATOM stakers, which begins in a few weeks.
Here is a handy graphic from this post by the team
What to do with it?
So the FOT tokenomics are weird. The Base token is FOT, but you can't trade it on a DEX at this point. What you can do is burn the FOT, with each FOT burned returning 10 bFOT. bFOT is tradeable on Junoswap, and currently has a price of around $3.40 each at the time of this post. Be aware, this has been extremely volatile, and will probably dump as people get their drop's - maybe. So, bFOT is the tradeable version of the token, but it does not end there.
The next step with bFOT is that you can stake it, for the next token in the system, called gFOT. gFOT is really rare, so if you go this route then you will likely turn you airdrop into 0.02 gFOT or something like that. gFOT pays a daily "staking" reward to you as FOT, with a massive APR at the moment, but that is likely to drop quite quickly as more gets staked.
So, is that the cycle? Get FOT, burn for bFOT, then stake that for gFOT, then earn more FOT. It seems to be for now, but it also seems that another option for gFOT is coming in just a few days. There is a section on the site called the stable module sFOT, with a countdown of around 3 1/2 days at present. It would seem that this add on "module" will involve converting your gFOT into a stable coin (maybe). I am sure I read somewhere that this will be exchangeable for UST or other stables, but I can't remember where to link it so don't take my word for it.
If anyone can actually understand this tokenomics, please drop a comment as I don't get it.
So, what will I do?
I'm going to gather the airdrops as they come. Burn the FOT to bFOT. Then I will sell around half to something I do understand, probably JUNO to boost my LP position in some real assets. The remaining half I'll stake, and get the gFOT. The daily staking rewards that come from this will follow a similar pattern - sell half for something else, stake half just in case this actually holds some value in the mid term.
I don't get it, it is such a weird structure that it just feels way to complex. But I'm here for it and will be happy to take some profits, and play along incase I have misjudged and it does work. Would I invest in this - no chance. But to play along with a free airdrop, why not. I also don't plan to add anything to the Liquidity pool, just in case it is a rug pull. It seems they have put a lot of work into the project, but I'm still cautious.
At the current price for bFOT, the entire airdrop of 222 FOT works out to be worth $7548. It would be truly amazing if these prices held up. Even if you can end up getting a couple grand from it, its pretty cool.
Once again, the JUNO money printer is going BBBRRRRRRRRRRRRR.
Are you getting some FOT?
Do you understand any of it?
Will number go up?
Thanks for reading,
JK.
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