Airdrop farmers have now turned their Abstract L2 shutdown frustrations into an informal demand for repayment.
Led by Charles Moscoe, founder of venture fund GM Capital (going by Beanie Maxi on X), they want the Pudgy Penguins team to directly unlock PENGU to the farmers. He posed,
They’ve (Pudgy Penguins team) already made hundreds of millions of dollars selling PENGU. So why not just distribute the rest of the locked tokens to XP earners?
Airdrop farmers are early protocol users or adopters. In most cases, they tend to be rewarded with tokens (airdrops) when the project finally debuts its native token.
Before that, they earn reward points based on activity (swaps, trading, staking, etc.). Basically, it involves putting their money on the line and offering the much-needed liquidity to new projects.
Abstract fallout: Will the team release locked PENGU?
Abstract, an Ethereum L2 developed by the team behind Pudgy Penguins, rewarded early users via XP points for the past two years.
These points are always convertible to the final token when it debuts. But Abstract will shut down by December; hence, there is no need to launch the token.
According to the project team, Abstract failed to be competitive in key segments and failed to find product-market fit; hence, it has to be wound down.
For Moscoe, however, the move will cost airdrop farmers immensely and should still be rewarded for their efforts, warning that it will weigh on the team.
I always liked the Pudgy Penguins story. But I feel like the vibe is gone with how Abstract users are done dirty. It’s easily avoidable too.
Community backs call for PENGU repayment
Currently, PENGU has a total supply of 88.88B tokens, but only 70.7% has been unlocked and is in circulation. The remaining unlock supply (29.3%), or about 26B PENGU, is worth $212M and will be shared by the community, team, and liquidity operations.
It’s not clear whether Moscoe wants the whole 26B tokens ($212M) given to airdrop farmers. Interestingly, some supported Moscoe’s call. In fact, Kona DeFi promised to step up the campaign.
Ecosystem teams are going to have to step up. We’re going to start our stimmy campaign soon for XP holders.
Another supporter added,
Users got used and sidelined. I understand the shutting down aspect of business, but allowing loyal users walk away with nothing? After 2 years of daily grind? Not just ridiculous, it’s evil!
Amid the debate, PENGU dropped about 2% and could extend the decline to 9% and retest $0.0076.
It remains to be seen whether the team will agree to the demands because the Pudgy Penguins (NFT) community seems against the idea.
Final Summary
- Abstract airdrop farmers want $212M PENGU compensation
- According to them, failure to reward farmers will erode investor trust in Pudgy Penguins
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