CowSwap unlocks $100 million airdrop for its early supporters

Quick Take

  • MEV-resistant exchange CowSwap has completed the airdrop of its governance token.
  • Since going live, the price of the token has fallen from $1.78 to $1.08.

CowDAO allowed the recipients of its recent airdrop to start cashing in their tokens this week, as the token went live on exchanges.

Members of CowSwap’s governing Decentralized Autonomous Organization (DAO) voted in favor of the switch on Monday, according to a post on the protocol’s blog. The airdropped tokens were worth about $100 million at the time of publication.

In February, Gnosis DAO dropped untransferable vCOW tokens to early adopters on Ethereum and Gnosis Chain. The airdrop claiming process was closed on Monday (as defined in the initial smart contract deployment by Gnosis DAO) and required airdrop claimants to swap vCOW to COW, a brand new tradable token. 

In total, CowSwap allocated 100 million tokens to the airdrop and those that made it to the airdrop list got anywhere between 99 to thousands of vCOW — depending on a trader’s total volume or the amount of staked Gnosis tokens.

At the time, while the vCOW tokens could be claimed they were not transferable. This meant the recipients of airdropped tokens could not immediately sell; the only use was for CowSwap governance.

After a couple of months, the CowSwap DAO has voted in favor of swapping vCOW to COW in a 1:1 ratio. These new tokens can be traded and used in liquidity incentives.

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