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Sudoswap is getting a new token for its community.
The decentralized NFT marketplace announced that an initial supply of 60 million Ethereum-based SUDO tokens would be distributed to various members of the project.
Those who also hold XMON, the utility token behind the popular NFT project called 0xmons, will receive the lion’s share (41.9%) of the SUDO drop via a lockdrop event. Holders of the GAN-generated 0xmon NFTs will also earn 1.5% of the SUDO supply.
“XMON holders will be able to lock their XMON as an indication of their commitment to participate in the governance of the sudoAMM protocol and receive SUDO,” today’s post reads. For every XMON locked up, users will receive 10,000 SUDO tokens.
This post outlines the distribution of SUDO, the governance token of the sudoAMM protocol. https://t.co/aGwNWSDaB6
NOTE THAT THE SUDO TOKEN GOVERNING THE SUDOSWAP PROTOCOL HAS NOT YET BEEN DEPLOYED. PLEASE EXERCISE CAUTION
— sudoswap (@sudoswap) September 2, 2022
The hefty overlap between Sudoswap and 0xmons is no surprise, with the latter team also building the NFT marketplace.
Today's announcement also explained that 1.5% of the initial supply would also be distributed retroactively to liquidity providers on Sudoswap.
What is Sudoswap?
Sudoswap is a unique NFT platform in that it uses an automated market maker (AMM) to source and fund trades. Think of how Uniswap pools various token pairs, but instead of tokens, Sudoswap provides the same service for NFTs.
The advantage of this design is that it gives NFT traders the opportunity to dynamically buy and sell different jpegs.
Instead of listing five different NFTs at the collection’s floor price, holders can create pools that adjust the price of each NFT as the collection is bought. Conversely, traders can create “buy-only” pools that buy NFTs automatically, similar to dollar-cost-averaging.
It’s not without its critics, however, with the most common criticism being that the platform does not honor artist royalties. That hasn’t stopped users, though.
A Dune Analytics dashboard prepared by 0xRob indicates that the Sudoswap has hosted over $34 million in volume via more than 135,000 NFTs traded.