It ain’t so easy to give out free crypto money these days. That seemingly paradoxical reality has come for Solana-based crypto yields protocol Kamino, which on Monday overhauled the mechanisms it plans to use for its upcoming airdrop of the KMNO token.
The new rules will give additional – albeit unspecified – rewards to “OG” users of Kamino, which hosts various decentralized finance (DeFi) products for borrowing, lending, staking and earning interest on Solana tokens. Points-earning strategies will also be lessened, Kamino said in a post on X, formerly Twitter.
“We hear you,” Kamino’s account posted mid-Monday, trying to quell four days of blowback it has faced from users since announcing the details of its airdrop, scheduled for April.
The turnabout underscores the profits and perils of using points to divvy up tokens on Solana – These mechanisms give protocols a way to quantify their users’ contributions and a means for those users to measure their rank against everyone else. But it also opens the door to gaming the system, especially when the people in charge are overly transparent. That’s exactly what came for Kamino.
Protocols don’t usually tell users the full rules of the points system before everyone’s finished playing it. This ambiguity may be frustrating but it limits opportunities to game the system. Kamino, which announced its points program immediately after the Jito airdrop, eschewed this mantra; it played instead with an open hand.
Kamino’s April Airdrop
Earlier this month Kamino confirmed it was on the verge of rewarding its users with an airdropped token and slated the distribution for April. As expected, Kamino said it would tie users’ allocations to the number of points they accrued by borrowing, lending and participating in its various DeFi products.
Many people had long awaited this news and had tied up thousands of dollars-worth of crypto on Kamino in order to earn its points and get more of the KMNO token. But the airdrop announcement rocked their calculations by tethering their future allocations purely to the total number of tokens they could accumulate by the end of the month when Kamino would take the all-important snapshot.
Kamino’s total-value-locked jumped 69% in the past five days to nearly $900 million, according to…
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