[Updated] Fuel Season 1 Claim

General
1

Name of the Proposal: Fuel S1 Claim

Note: This is the second draft proposal for discussion on the FUEL Campaign. After consideration of much community feedback and suggestions, this is the next iteration to be voted on commencing 15 Feb 2025.

The first Draft can be found here: Fuel Season 1 Claim Draft

Changelog

  1. Updated milestones from 3 to 5
  2. Revised Milestone scaling to be a multiplier, ensuring early milestones are easier to achieve and later milestones more ambitious
  3. Added explanation of Linear FUEL distribution (no tiering)
  4. Removed Claim bonus and 30-day vest; introduced immediate unlock claim for most users and a 9-month vest for the largest users
  5. Added disqualification measure for wash trading
  6. Extended campaign resolution date from May to June
  7. Updated milestone count kick-off date to align with the governance vote

Summary

Over the past year, Drift has distributed ~12% of total token supply to reward community members and foster growth as part of the initial TGE in May. Now, with FUEL, Drift is building on that foundation:

  • Up to 7.82% of the total DRIFT supply will be allocated through a milestone-based campaign.
  • Real trading activity will be recognised, wash trading disqualified, and all users will be treated equally via Linear Distribution mechanism (no tiers).
  • Drift is continuing its commitment to community ownership by ensuring the distribution of DRIFT tokens over the coming years, aligning users with the protocol’s long-term vision and success.

Our goal is simple: grow Solana DeFi and solidify Drift as the premier home of DeFi on Solana.

Token Supply

This proposal suggests allocating a maximum of 7.82% of the total Drift token supply for distribution via the FUEL S2 campaign, concluding in June 2025. This 7.82% comes from:

  • 7% from the Community & Ecosystem allocation
  • 0.82% rolled forward from previously unclaimed TGE tokens

Currently, 8.2 million DRIFT is set aside for FUEL (per a prior governance vote, details here), originating from unclaimed DRIFT tokens from the first airdrop in May 2024.

Milestone-Based Amount

The total DRIFT allocation for FUEL will scale with Drift’s trading volume success. If the community and protocol excel in driving volume, more tokens become available for claiming.

Milestones

Milestone 1: 15B Total Perp Volume

Milestone 2: 25B Total Perp Volume

Milestone 3: 40B Total Perp Volume

Milestone 4: 60B Total Perp Volume

Milestone 5: 100B Total Perp Volume

Milestone Amounts (On top of the existing 8.2M)

No Milestones Hit: 28.2M DRIFT (2.82% of total supply)

Milestone 1: 38.2M DRIFT (3.82% of total supply)

Milestone 2: 48.2M DRIFT (4.82% of total supply)

Milestone 3: 58.2M DRIFT (5.82% of total supply)

Milestone 4: 68.2M DRIFT (6.82% of total supply)

Milestone 5: 78.2M DRIFT (7.82% of total supply)

Note: Milestone success is measured by total Perp Market Volume from campaign start (When vote is finalized) through campaign end (June 2025).

Why These Milestones

Achieving all milestones would place Drift among the top three derivatives platforms in crypto, and number one on Solana. This will demonstrate that the future of DeFi is Solana DeFi.

Wash Trading Protection

To ensure organic trading volume, the Drift core team will actively monitor for suspicious activity. Accounts identified as engaging in wash trading or other manipulative behaviors will be flagged for disqualification from FUEL distribution. This ensures fairness for all legitimate participants.

Linear Distribution

This will be a linear distribution. A linear distribution will ensure the commensurate recognition of users who’ve contributed most to Drift’s growth.

Linear means no tiers and no minimum or maximum FUEL amounts. It means there will be no need to identify sybils as there will be no advantage to sybils. All Drift users will be considered equal.

Claim Mechanism & Vest

  • Most Users: Receive an immediate unlock of their DRIFT upon claiming.
  • Largest Users: A small subset of top holders will be subject to a 9-month vest (no cliff) to maintain strong alignment with the protocol’s long-term growth.

This mirrors the TGE structure, where largest holders also had a vesting schedule.

Timeline

  • Start: ~17 Feb 2025 (post-governance vote)
  • End: ~June 2025

Extending the campaign to June coincides with upcoming liquidity upgrades, ensuring all new and existing users get the best experience possible.

7 Likes
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I highly recommend at least a max cap. Only you would know what percentage of users own fuel points. If 95% of fuel points are owned by say 100 people, then no cap would be terrible for decentralization. You should do the numbers and work out what the best approach.

Also why are we extendining the airdrop to June?

4 Likes
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i spent over half an hour typing out an response for it just to be flagged for spam?? hopefully that is fixed soon lol

1 Like
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Sound just about right. Drift team goated :goat:

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Gm!

I like the proposed jump on token supply allocated to milestones but would like to add few things to consider :slight_smile:

  1. Split rewards into 2 pools to target both traders and liquidity providers (LPs)
    Trading Pool (60% of rewards): Rewards based on net trading volume.
    Liquidity Pool (40% of rewards): Rewards based on time-weighted liquidity depth.

  2. Dynamic Multipliers
    Traders referred via Drift’s referral system earn +10% rewards (could be variable) for their first $100k volume. (along with normal +15% of their trading fees)

  3. Vesting with “Loyalty Boost”
    Alpha Tier Traders & Top LPs: 9-month linear vesting.
    Loyalty Boost: If users stake DRIFT during vesting, unlock +20% bonus tokens post-vest.

  4. Milestone Structure

Total DRIFT rewards scale with protocol performance:

Milestone Volume Target Liquidity Depth Target DRIFT Released
1 $15B $50M avg. depth 15M
2 $25B $75M avg. depth +10M (25M total)
3 $40B $100M avg. depth +15M (40M total)
4 $60B $150M avg. depth +20M (60M total)
5 $100B $200M avg. depth +18.2M (78.2M total)

Key Design Logic:

  • Progressive Difficulty: The gap between milestones increases (e.g., 15B→25B vs. 60B→100B), requiring exponential effort to unlock maximum rewards.
  • Liquidity Symbiosis: Depth targets ensure markets remain robust as volume grows.
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Great ideas - really appreciate the input here :handshake:

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Being purely linear. There should for sure be a max cap. I still believe the goal should be to get a total of 10 percent for the drop then next drop would be 8 percent and afterwards 6 percent. I feel like 7.82 percent is such a massive drop from the tge drop. I am concerned the drift token will be heavily centralized to a few users if it stays linear with no max allo

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9

Why do you think there should be a cap? Noting the top will be vested for 9 months yet if you’re not one, you’ll be able to claim instantly.

Separately, to your comment that it feels like a drop:

  • TGE dished out approx. 12% of supply and token price was around 30cents at the time ~$36m of token value
  • This proposal aims to distribute 7.82% of supply (upper-bound) and current DRIFT p around 80cents ~ $62.5m of token value.

In a sense, Drift Protocol would actually be giving substantially more token value as part of this campaign if the proposal passes than the original TGE.

2 Likes
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Having a cap helps decentralize drift tokens. By limiting the most a user can get you can help the average user get more drift without having farmers benefit because the drop will still be linear. I do not have the leaderboard for how much fuel is in circulation. When it comes to the allocation amount I feel as if the value of the token is irrelevant. I also believe its a bit of a confident goal for just 3ish months. Drift only gets 5ish billion per month therefore if we keep the same goal we do not even hit milestone 1. These goals will most likely cause the whales to sneakily wash trade which would be great for drift in the sense to clickbait and say we get a ton of volume but would hurt the average user if the system stays purely linear. You can correct me if any of that is wrong

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11

I agree on multipliers for early users, just not a proportion that would be weighted unfair or centralized in a way it creates a imbalance.

2 Likes