What the hell are the OpenDAO and its SOS token?

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At the end of last week, a new Decentralized Autonomous Organization (DAO) called OpenDAO suddenly emerged to distribute free tokens to users of OpenSea, the largest NFT marketplace.

According to its website, the goal of OpenDAO (not to be confused with a stable coin minting protocol of the same name) and of its SOS token is to “pay tribute, protect, promote” the NFT community.

Specifically, anyone who made a transaction on OpenSea before December 23 can claim free SOS tokens via the airdrop. All they have to do is connect a wallet like MetaMask to the OpenDAO website, estimate their rewards based on the total number of trades and dollars spent on OpenSea, and initiate their request for free tokens.

The total number of transactions has a weight of 30%, and the volume of transactions in ETH, DAI and USDC has a weight of 70% for token distribution, according to the OpenDAO website. This means that the more money you spend on transactions, the more SOS tokens you will get.

The total supply of SOS tokens is $ 100,000 billion, and 50% of them will be air-dropped to OpenSea users. Of the remaining 50%, 20% will be reserved for the DAO itself, 20% for staking incentives and 10% for liquidity provider incentives, the website says.

OpenSea users have until June 30, 2022 to claim their tokens, after which any remaining tokens will be sent to DAO treasury.

OpenDAO says it will use its 20% share to compensate victims of verified scams on OpenSea, support NFT artists and communities, and provide grants to developers.

More than 200,000 users have already claimed nearly 39,000 billion SOS tokens, an amount currently worth nearly $ 265 million. The SOS token has already been listed on major crypto exchanges, such as OKEx and Huobi. It is currently trading at $ 0.00000680.

Who is behind OpenDAO?

While the SOS Airdrop is aimed at OpenSea users, the market itself has nothing to do with distribution.

“We get a lot of questions and want to make it clear that we are not involved in the SOS downfall,” OpenSea tweeted on Saturday. “We love to see the community come up with creative ways to move the space forward, but we always recommend researching the contract and the source before claiming tokens.”

It’s unclear who founded OpenDAO, but its main contributor is the anonymous user @ 9x9x9eth, according to OpenDAO’s Twitter biography. Four days after his presence on Twitter, the OpenDAO account has gained nearly 125,000 followers, and @ 9x9x9eth has racked up nearly 45,000 followers since joining Twitter in September 2021.

@ 9x9x9eth is also the main contributor to 721DAO, which aims to create a decentralized entertainment metaverse. The Block reached out to @ 9x9x9eth for comment on this story, but they didn’t respond until press time.

© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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