Maker Founder Proposes ‘Pre-Farming Airdrop’ for Spark Lending Platform

Rune Christensen, the founder of Ethereum stablecoin issuance platform Maker, has released an on-chain proposal for a “pre-farming airdrop” of SPK, the governance token of lending dapp Spark Protocol.

The proposal, submitted on Wednesday, discusses the token emission schedule of SPK tokens, with a total supply of 2 billion tokens to be distributed over 10 years.

Christensen described it as a “pre-farming airdrop” or “retroactive farming” allowing early users of Spark to “secure early SPK tokens.” Later, he clarified that the “established technical term” for the token distribution is “Blind Mining.”

The move comes within a week after the MakerDAO community voted to temporarily increase the annual returns on DAI deposited through the Spark Protocol.

I posted an overview of the potential SparkDAO SPK pre-farming airdrop for early users of https://t.co/GldZ4XYO7m borrowing:https://t.co/rtIf3upQKL

This would be a way to secure early SPK tokens, before the SubDAOs launch
(Farming not available to US and VPN users)

— Rune (@RuneKek) August 9, 2023

Now, Christensen is seeking to motivate users “borrow from Spark Protocol” to become eligible for the SPK token airdrop.

The protocol’s deposits have jumped by 24.8% from $347 million to $433 million since Rune’s tweet went out, per DeFiLlama data.

The DAI borrowing pools have a 100% utilization rate, meaning users have reached their borrowing limit on DAI deposits.

Total deposits in Spark have increased 7.4 times since the start of the week, from $58 million to $438 million.

Spark Protocol was developed by the Maker team as a part of its Endgame plan, which involves restructuring the DAO into multiple subDAOs, each with its own governing token. The eventual aim is to increase “Dai supply to more than 100 billion within 3 years,” according to Christensen.

Spark is the first attempt at moving towards that goal.