Fuel Season 1 Claim Draft

General
1

[DRAFT] Fuel S1 Claim

Name of the Proposal: Fuel S1 Claim

Note: This is an initial draft proposal for discussion on FUEL S2 Campaign. All community input is valued. The final draft to be voted on may be different.

Overview:

Currently 8.2MM Drift has been allocated to the FUEL fund, passed in previous governance vote (found here) which constituted the unclaimed Drift governance tokens from the first Airdrop in May 2024.

This proposal suggests adding ~7% of the total Drift token supply, sourced from the Community & Ecosystem portion (53% total) of the Drift token supply (see below), to the existing FUEL fund for distribution as part of the FUEL S1 campaign resolving in May 2025.

Link to tokenomics: Drift | Perpetual Swaps on Solana

This will take the maximum total Drift tokens convertible for FUEL for eligible FUEL holders to 78.2MM Drift in May 2025 through a vested claim process.

FUEL S1 Campaign:

This proposes contributing ~70MM DRIFT to the Drift FUEL fund and campaign (”Proposed Amount”).

The objective of the FUEL campaign is to recognize and award usage of the protocol.

Expanding the FUEL fund to support the s1 FUEL campaign will contribute to further Governance of the protocol by ensuring governance power is distributed to the protocol’s most active and core users.

A total of ~78.2MM DRIFT for the FUEL Fund will be sent to the security council.

Milestone Based Amount:
The percentage of the Proposed Amount should be distributed to the community pending achievement of milestones. The more activity and usage of Drift during this campaign, the larger the final amount of DRIFT for claiming in the FUEL fund. This approach will align incentives of the Drift community and celebrate the protocol and campaign’s success.

Milestones (subject to change in final draft)*
Milestone 1: 25B Total Perp Volume by campaign end [approx. 200m ADV]

Milestone 2: 50B Total Perp Volume by campaign end [approx. 400m ADV]

Milestone 3: 100B total Perp Volume by campaign end [approx. 800m ADV]

Milestone Amounts (subject to change in final draft)*

If no Milestones are hit, minimum amount contributed to FUEL fund will be 4% of total token supply plus 8.2MM DRIFT totaling 48.2MM DRIFT.

If Milestone 1 is reached, 58.2MM will be released via the FUEL fund (~5% of Drift token supply).

If Milestone 2 is reached, 68.2MM will be released via the FUEL fund (~6% of Drift token supply).

If Milestone 3 is reached, 78.2MM will be released via the FUEL fund (~7% of Drift token supply).

Note: Milestone success should be calculated based on Total Perp Market Volume from beginning of the FUEL Campaign, Jan 2025, through to end of FUEL Campaign, May 2025.

Bonus Mechanism
Similar to Drift’s first airdrop, accessibility to FUEL fund should incorporate a bonus mechanism in order to provide the best experience and further recognize loyal Driftoors. All eligible Driftoors should be subject to two components:

  • An initial allocation
  • A bonus allocation

The initial allocation will be available at launch, and the bonus allocation unlocks linearly over 1 month, starting from the moment an eligible Driftoor accesses initial allocation.

Any and all community feedback is highly valued.

14 Likes
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Considering the initial airdrop was 12 percent I feel like at least 10 percent for the next drop would be a fair amount. Also from what time frames are the total perp volume being taken from? Now until May first or since drift started? Because at this pace if we track volume from now until May first we are on track to only get around 22b volume. I feel like having 5 milestones would be better. It could look something like this:
Milestone 1: 5B Total Perp Volume by campaign end
Milestone 2: 15B Total Perp Volume by capaign end
Milestone 3: 25B Total Perp Volume by campaign end
Milestone 4: 50B Total Perp Volume by campaign end
Milestone 5 100B Total Perp Volume by campaign end

Then instead of 4 percent being added initially we could start with 5 percent and add one percent per milestone and if we achieve all we have a 10 percent airdrop

4 Likes
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as I said before the 100B seems difficult to achieve so maybe we want to tweak that a bit

2 Likes
4

Why 10% is there reasoning other than it is closer to orginial. That amount could be used for future drops. Ie - why now?

5

The commentary on amounts is fair. Want to look into these more.

6

I feel like a slow decrease in allocation drop is optimal. This one can be 10 then the next can be 8 and the one after that can be 6. I feel like 12 percent to a max of 7 percent is a big drop off. Also are there going to be any precautions taken to widen decentralization? Obviously there will be a few users who have the majority of fuel. The individuals that people refer to as whales. I do not recall what was done last time to combat this but I do believe there should be steps taken to have a max allocation per person along with possibly a minimum amount each person gets. Eigenlayer did the concept of a minimum allocation very well.

6 Likes
7

I also believe 10 is a way better number for excitement. 7 is just a very awkward number. Even 9 would look better

1 Like
8

Time and volume. I know that drift is old, but the serious action was there for only ~5 months before tge. Now volume is increased and we are talking about 1 year.

9

Vesting was mentioned, but what about ratio drift/fuel? Linear or weird logic like the 1st one.

1 Like
10

I believe there should for sure be a max allo

11

Probably because the folks using DRIFT now and in the past window of time for this airdrop is more for a thank you and gratitude from DRIFT to its users, not for future airdrop farmers. There are a lot of those.

1 Like
12

Heck no. I’ve used drift every single day for 2 years and I’ve lost a lot and made a lot. Far over 6 figures and I don’t think there should be a max allocation. There should be a point based swap based on merit. This is not a DEI airdrop lol

4 Likes
13

Most likely from last may 2024 airdrop to this may. Our from last January when token launch was announced to a locked capture of fuel points in January 2025 to not allow for point/ fuel farming for the airdrop.

1 Like
14

When there is no max allocation the currency ends up being centralized to a few people. Which is obviously not good for a project in the long-term or short-term

2 Likes
15

Fully agree with you. A linear distribution ensures that rewards go to those who are truly contributing to Drift’s success, not to airdrop farmers with dozens of accounts. The focus should be on users providing real value, such as active traders and market makers, who are genuinely invested in the platform’s long-term growth and success. These are the people who are crucial for the health of the ecosystem. Rewarding them directly aligns incentives with Drift’s future. On the other hand, airdrop farmers often sell the tokens immediately for a quick profit and have no real interest in the platform’s success, which doesn’t benefit the community or the project in the long run.

2 Likes
16

If a project is purely linear the majority of tokens will go to a very small amount of users, usually around 10 people. That is no way to promote a long term community nor a long term successful currency. The airdrop can be most linear but with a fair max allocation. An allocation that would allow a few hundred or thousand people have that similar amount. That comment about airdrop farmers is not always true please look at the success of hyperliquid. What causes farmers to sell is when the overall project is bad and is poorly run. I do not think that is an issue here at drift. I would also argue that a smaller amount of people with a bigger bags have a bigger incentive to sell along with sell a larger amount at once. I still do think it is fair to have a small minimum allocation for either a certain amount of volume and days traded. Not everyone in crypto is wealthy, you can combat farmers but have this said minimum allocation very small, lets say 25-50 drift sort of like Jupiter did. Also I do not believe many people are farming drift with multiple wallets, it is well known that perp trading platforms are usually linear therefore there would be no upside to run more than one wallet. If you then want to bring up the point that then now people would know about the minimum allocation I would argue that literally only 5 people have replied to this thread even if that.

1 Like
17

I suggest watching this video, explains my thought process way better than i can x.com

18

High-level, I like the idea of having it be milestone-based. But only issuing an incremental 1% for doubling perp volume seems weird.

3 Likes
19

The 1% increment for flipping perps volume on each milestone is hmm not really cool. Loved the milestone idea though :ok_hand::+1:
What about monthly milestone, 5 of them for the 5 month till May

3 Likes
20

Good feedback, will consider revision!

1 Like