MarginFi Airdrop Might Finally be Happening - But is it Too Late?

Project 0, Solana DeFi's first prime broker, is finally delivering the token MarginFi users have been begging for since the app launched its points program in 2023.

In the protocol’s first governance proposal, PIP-1, Project 0’s Head of Growth masterzorgon outlined $P0’s tokenomics, with ~20% earmarked for a community airdrop.

Despite the excitement, supporters have raised concerns over the ambiguity of the token’s distribution, which seems to heavily favor “power users” and one “randomly selected” wallet.

Project 0 Opens Token Discussion

After running a points campaign so prolonged that most users moved on, MarginFi and its sister app Project 0, are finally approaching TGE. Fresh off the back of Project 0’s launch, the team is wasting no time capitalizing on its newfound attention and momentum to deliver one of Solana’s most eagerly awaited tokens.

According to Project 0’s proposal, the upcoming tokenomics seeks to equitably split $P0 tokens between the community, user incentives, the team, investors, and the Project 0 Foundation. Notably, this breakdown suggests that 20% of the supply will be airdropped to users based on their accumulated MarginFi and Project 0 points.

While reactions to the proposed distribution are mostly positive, community members have voiced concerns over allocations toward “Power Users”. Project 0’s tokenomics suggest that 5% of the supply will be given to said “Power Users”, without explicitly stating the criteria required. 

Additionally, the proposal suggests that 1% of the supply will be handed to a singular, randomly selected “Power User”. Some community members have since questioned the motivations of such a move, suggesting splitting that particular tranche among a wider group of wallets.

A Governance Proposal, Without Governance?

While the fact that Project 0 has opened discussions around the distribution of its native token is certainly an encouraging sign for users, the proposal doesn’t outline how governance will be carried out.

With no existing governance token by which to track votes, or any written commitment to leverage alternative governance models like Futarchy, Project 0’s proposal reads more like a discussion item than an actionable proposal.

This is somewhat addressed in the proposal, which states that PIP-1 “serves as a starting point for community discussion”. PIP-1’s creator masterzorgon has indicated that a final decision will be made in Q4, but has yet to outline how that decision will be reached.

MarginFi TVL Unchanged Following Token Announcement

Once a centerpiece of Solana DeFi, MarginFi’s TVL has been in a state of steady decline since its $880M peak in April 2024. Having run one of the ecosystem’s most enduring points campaigns, frustration with the lack of public communication regarding a token launch led many depositors to move their funds elsewhere.

However, the renewed excitement around Margin points being merged with Project 0 points ahead of the token’s launch has done little to attract fresh capital. Since Project 0’s debut in mid-September, MarginFi’s TVL has remained relatively unchanged.

Project 0’s UI indicates that the protocol currently holds over $221M in deposits. However, it should be noted that all funds deposited to the Project 0 frontend are routed to MarginFi’s onchain liquidity bank.

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