In temporary
SOS is an airdrop from OpenDAO, distributed to individuals who have spent cash on OpenSea transactions. The token is up greater than 1,000% in simply two days.
The venture is not affiliated with OpenSea, however virtually 200,000 wallets have claimed SOS tokens and the contract has a market cap of over $200 million.
On Christmas Eve, anybody who had ever spent cash on OpenSea may declare a free Ethereum token known as SOS, and the quantity of SOS they’d get was decided by how a lot cash they’d spent on NFTs on OpenSea.
By Sunday, about 240,000 individuals had claimed the token, and it had skyrocketed greater than 1,000% in worth.
The tokens weren’t dropped by the favored NFT market itself, however by OpenDAO, an unbiased decentralized autonomous group that pledges to make use of a number of the tokens it earmarked for itself to compensate OpenSea customers for scams, and assist the burgeoning NFT business.
Although the crypto house is saturated with airdrops and meme tokens, the drop for SOS blew up. On Christmas Day, it was the most important gainer on CoinMarketCap, with its value rising sooner than even the sketchiest shitcoin.
By Boxing Day, the token had risen to a market capitalization of $321 million. Its Discord has about 50,000 members and 100,000 individuals are following OpenDAO on Twitter. SOS’s market cap hasn’t been a vertical inexperienced line: the token has since fallen to a market cap of $266 million, as of this writing, a 17% lower from its all-time excessive.
How to say SOS
The variety of SOS tokens you possibly can declare is dependent upon how a lot you’ve used OpenSea, the preferred market for non-fungible tokens. The extra you’ve traded on the platform, the extra SOS tokens you possibly can declare.
To declare SOS, head to OpenDAO’s website, join your cryptocurrency pockets and hit “initiate claim.” OpenDAO helps MetaMask, Coinbase Wallet, and WalletJoin.
The website will then estimate your reward by understanding how a lot DAI, ETH, or USDC you’ve spent on OpenSea. That determine might be compounded by a multiplier, and the subtotal might be multiplied as soon as once more by the variety of transactions you’ve processed on OpenSea.
OpenDAO calculates what number of SOS tokens to offer you based mostly in your transactions previous to December 23. Any OpenSea transactions processed after that date gained’t depend.
The numbers are usually not at all times correct. “It said it I spent over 8 eth when that’s how much I’ve sold for, not how much I’ve spent,” one investor, who selected to stay nameless, informed Decrypt.
You’ll need to pay a fuel price on Ethereum to say your tokens; the price, denominated in ETH, will rely upon how congested the Ethereum community is. But there’s no rush to say: if you happen to’re eligible to say tokens, you’ll have till June 30, 2022 to take action. Unclaimed tokens might be despatched to the DAO’s treasury after that date.
Once claimed, the tokens might be despatched to your Ethereum deal with. If you’ve linked to OpenDAO with MetaMask, you possibly can add the SOS token to your pockets by hitting the “Add SOS” button on the aspect of the web page.
Within days of its creation, main exchanges, equivalent to OKEx, Huobi Global and Gate.io listed the token. You can commerce it on decentralized exchanges like Uniswap, or turn out to be a liquidity supplier to earn a minimize of transaction charges on an computerized market maker protocol.
A pseudonymous developer known as 9x9x9 created OpenDAO. The coder, who’s additionally constructing a DAO known as 721DAO, says he didn’t receives a commission for creating OpenDAO, however he didn’t have to: in keeping with Etherscan, 9x9x9’s ETH account holds over $800,000 of SOS tokens, and the developer additionally holds $10 million value of Aave interest-bearing XSUSHI tokens.
Full transparency: I m working for @The_OpenDAO with out getting paid, at the least for now, the one method for my monetary acquire might be by shopping for $SOS for myself and dealing my ass off. however you recognize I m not in to for the cash, in any other case, I’ll purchase it within the first hour, not at 10x. pic.twitter.com/PbbPWrrywN
— 9x9x9🆘🆘 (@9x9x9eth) December 25, 2021
SOS’s tokenomics
OpenDAO’s website claims that there might be 100 trillion complete $SOS tokens. Half had been designated towards the airdrop. Another 20% might be issued as staking incentives, and one other 10% will incentivize liquidity suppliers.
Two votes proposed by the venture’s pseudonymous creator, 9x9x9, have decided how the protocol will dish out these incentives: the staking incentives might be distributed over the course of a yr, and token holders determined that it’s going to take two years to deplete the DAO of incentives for liquidity suppliers.
A closing 20% will go to the OpenDAO protocol. The OpenDAO protocol will compensate victims of OpenSea scams, assist NFT communities and artists, and supply cash to builders. It is probably going that these selections might be made via Snapshot, the identical voting website that decided the rewards for stakers and LPs.
There isn’t a venture roadmap but. Why? One of the DAO’s pseudonymous contributors, 9x9x9, stated on Discord: “Coz it is a DAO, we are undergoing set up for the DAO (getting candidates for muti-sig), it is not a COMPANY with ROADMAP, decisions are decided by all $SOS holders.”
OK — b4 all of the VC thinkpieces begin…. these airdrops (like $ENS earlier than it) flip script on how EVERYONE will worth their time + spending on-line👉 u’re lastly rewarded 4 utilizing. It’s bringing incentives that I really like (as a founder/investor) to the COMMUNITY that makes all of it work
— Alexis Ohanian 7️⃣7️⃣6️⃣ (@alexisohanian) December 25, 2021
As an apart, OpenDAO shouldn’t be confused with a stablecoin minting protocol by the identical title, nor any of the scams or NFTs that declare to be related to the venture.
Is the SOS token reliable?
Many have this query, and the Ethereum group is busy rifling via the code. Some, like good contract sleuth “0xquit,” discovered only a few issues with the code. He tweeted that SOS is “safe to claim and trade. There’s nothing out of the ordinary buried in the contract.”
Others, like “fabdarice,” discovered “red flags” throughout the code. First, they discovered that half of all tokens are held in three externally held accounts, “Meaning that the team can at any point rug the entire liquidity or is at risk of having a central point of failure being compromised.”
Fabdarice additionally discovered that the contract’s declare operate permits the builders to “grant any arbitrary amount of $SOS to any arbitrary wallets by simply generating ‘valid signatures’,” with out anybody with the ability to “differentiate the valid claims from the invalid ones.”
4/ 🚩 Red Flag #2:
The `declare` operate beneath is permitting the dev staff to arbitrary grant any arbitrary quantity of $SOS to any arbitrary wallets by merely producing “valid signatures”.
This is VERY SCARY as no person can differentiate the legitimate claims from the invalid ones. pic.twitter.com/W7jKRNHDU3
— fabdarice (@fabdaRice) December 25, 2021
But 0xquit says Fabdarice’s considerations are in regards to the viability of the token, not its safety. “While it’s true that the devs could potentially forge a signature to mint SOS for themselves, they could not use that to, say, steal your SOS or anything else from your wallet,” 0xquit informed Decrypt through Twitter DM. “As far as cash grabs/rug pulls go, this is more of an orange flag in that regard. I find it unlikely that they would (or have the ability to) use that avenue to allocate coins to themselves. There are much easier ways to rug your own protocol, for one.”
If the builders cast signatures to allocate themselves extra cash, 0xquit says they’d both hit the max provide, blocking individuals from claiming tokens “so we’d know they did it” or would have “essentially just taken an advance on the tokens that get returned to the DAO anyway.”
The venture’s creator, 9x9x9, responded to what he known as the “smart contract FUD” on Discord: “[The] only thing that Dev can/will do is to move unclaimed $SOS by 30/JUN to DAO. With [the] ability to do above, fudders will always attack that this is not perfect. But life is not perfect, all we can do is be better than ourselves.”
The venture’s snapshot has already voted in favor of locking up 30% of the tokens for at the least a yr, and the staff is within the technique of discovering respected holders for its multi-sig wallets. Anyone can apply.
That stated, with simply two votes handed as of this writing, there’s nothing to counsel for certain that OpenDAO can maintain its momentum and construct a fully-functioning DAO that may fulfill its goals.
Did OpenSea actually need assistance from a DAO?
In some ways, the recognition of SOS is a response to requests for OpenSea itself to launch a token. Popular crypto initiatives like Uniswap, Compound, and Aave have distributed governance tokens to individuals who used their platform, and plenty of merchants are stressed for OpenSea to do the identical.
OpenSea is an organization, not a protocol, and has no trigger to decentralize in the identical method that protocols like Uniswap and Compound do. That stated, OpenSea’s group clearly needs an OpenSea token: The firm’s newly appointed CFO Brian Roberts met with backlash earlier this month when hinted at plans for an IPO.
Selling fairness on the inventory market would distribute possession over OpenSea to rich shareholders relatively than group members. OpenSea has since stated its “intentions were misreported.”
Independent DAOs like OpenDAO may use governance mechanisms to perform related issues to an OpenSea governance token, like letting the group decide which initiatives the DAO ought to fund or how victims of scams must be compensated.
