Quick Look at the Latest Information on Sanctum Token and Airdrop

Original Content | Odaily Planet Daily
Author | Azuma


On June 5th, Beijing time, the Solana ecosystem LST staking protocol Sanctum officially announced the basic information about the token economic model, and explained some details of the points activity and airdrop plan through subsequent community AMA sessions.
As the top project in the second round of voting for the Jupiter LFG Launchpad project, Sanctum has always attracted high attention in the Solana ecosystem. Over the past month or two, Sanctum has achieved rapid progress in terms of data with the help of the first season points activity Sanctum Wonderland S 1, with a TVL of $10.3 billion as of the time of writing, making it the fourth-ranked DeFi protocol in the Solana ecosystem.


Project Overview
In April, Sanctum announced the completion of a seed round extension financing, led by Dragonfly, with participation from Sequoia, Solana Ventures, CMS Holdings, DeFiance Capital, Genblock Capital, Jump Capital, Marin Digital Ventures, and others. Although the amount of this round of financing was not disclosed, Sanctum revealed that the total funding for the project has reached $6.1 million.
Different from conventional liquidity staking protocols, Sanctum’s approach is more like helping Solana build a more unified liquidity staking paradigm to address the liquidity fragmentation issues of major staking tokens in the Solana ecosystem (LST, such as Sanctum’s own INF, as well as jitoSOL, mSOL, bSOL, and other tokens).
By building a unified liquidity layer around the liquidity staking scenario, Sanctum can help users achieve fast, lossless redemptions through multiple modules such as Reserve (providing instant unstaking services for all LST), Router (supporting the exchange of LST that usually have no trading path), and Infinity (supporting the exchange of all LST among each other) with minimal slippage.
Token Economic Model
Last night, Sanctum’s founder FP Lee simultaneously disclosed the project’s token economic model.
The protocol token of Sanctum will be named CLOUD, which, in addition to basic governance utility, FP Lee mentioned that potential partners may need CLOUD to qualify for Sanctum’s verification program, adding a certain practical value to CLOUD.


The total supply of CLOUD will be 1 billion tokens, with the following specific distribution:
Community Reserve 30%: The community reserve should be strategically used to expand Sanctum’s market share, and the community will ultimately decide how to use this reserve.
Strategic Reserve 13%: The team will use this reserve to develop the Sanctum ecosystem, such as for future acquisitions, strategic investments, ecosystem partnerships, donation programs, liquidity mining, etc.
Team 25%: Locked for one year, then released linearly over 24 months.
Investors 13%: Sanctum has previously sold some tokens at valuations of $50 million and $60 million, most of which were sold in 2021. This portion of tokens will also be locked for one year, then released linearly over 24 months.
Initial Airdrop 10%: To be distributed to the community at the CLOUD TGE.
LFG Launch 8%: Used to inject initial liquidity for CLOUD on the Jupiter Launchpad.
LFG Donation 1%: This portion will be donated to Jupiter LFG, following the usual practice of airdropping to LFG voters.
From the circulation perspective, CLOUD can achieve a maximum initial circulation rate of 18% in the early stage of the TGE, including 10% of the initial airdrop share and 8% of the LFG Launch share, but the tokens not sold in the Jupiter Launchpad will be returned to the strategic reserve.
Points Activity
Currently, the first season points activity of Sanctum has officially ended, attracting participation from over 300,000 addresses.
However, some details about the first season points activity are still pending confirmation, including the utility information of “cupcakes” and the final points situation of users – Sanctum stated that the final statistics are still being finalized, so the scores displayed on the front end may change slightly.
As for the second season activity, FP Lee originally planned to launch it immediately after the end of the first season activity, but later decided to postpone it in order to provide users with a different participation experience and conduct a more elaborate design. The specific start time of the second season is currently unknown but will be after the TGE.


Airdrop Plan
Currently, the confirmed information about the airdrop is that 10% of CLOUD tokens (100 million) will be distributed to participants of the first season activity, and FP Lee also revealed that there will be some sort of witch screening to differentiate between “farmers” and “true believers.”
As for the timing of the TGE and airdrop, there is currently no specific timeframe, with the official mention that eligibility for the airdrop will be disclosed and open for collection in the coming weeks.


It is worth mentioning that although the 10% CLOUD used for the initial airdrop is included in the initial circulation range, FP Lee mentioned the possibility of implementing additional rules for the specific distribution design to ensure that “true believers” have a certain liquidity advantage – for example, setting 50% of the airdrop share to be immediately unlocked and the remaining portion to be unlocked within 7 days – but this plan is still pending confirmation.


Where to Trade?
In addition to the airdrop, another direct channel to obtain CLOUD is to participate in Jupiter’s LFG Launchpad.
A total of 8% of CLOUD will be injected into Jupiter’s Launchpad pool as initial liquidity, and FP Lee mentioned that the initial price curve of CLOUD will start at a $50 million FDV, which is quite attractive.


Furthermore, FP Lee emphasized that they will not pay listing fees to any centralized exchanges (CEX) because “he would rather give that money to the community.”
In conclusion, FP Lee stated that they welcome CEX to actively choose to list CLOUD but will not pay to force it. This may result in CLOUD not being able to land on mainstream CEX in the early stages of TGE, making the on-chain market the main battlefield for CLOUD.