Newly launched Grass pre-market futures held steady on Tuesday, Oct. 22, as traders awaited the upcoming airdrop.
Grass (GRASS) futures offered by OKX were trading at $1.15, 52% higher than last week’s low of $0.7330.
The rally occurred after the developers provided more details about the airdrop. In an X post, the Grass Foundation announced that the first airdrop will consist of 100 million GRASS tokens, representing 10% of the total supply.
Of these tokens, 9% will go to users who earned points during the network epoch’s first stage. Another 1% will be distributed to GigaBuds NFT holders and users who have installed the Desktop Node and the Saga Application.
The foundation also noted that the network epoch includes users who earned 500 or more Grass Points during that period. Additionally, 5 million GRASS tokens will be equally distributed among all accounts that have installed the Desktop Node or the Saga app and earned at least 500 points.
https://t.co/tYGWPDfofX
— Grass Foundation (@grassfdn) October 21, 2024
The upcoming GRASS tokens will be used for network governance, including proposing and voting on improvements. They will also facilitate staking and reward distribution. After decentralization, Grass tokens will be used to pay for transactions on the network.
Grass is one of the most popular players in the blockchain industry, with over 2 million users worldwide. These users create accounts on their computers, download the application, and keep it running in the background.
Users receive tokens for contributing their unused internet to the network. Companies use the local network for tasks such as checking local product prices and viewing regional ads.
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Grass joins other high-profile airdrops
Grass joins several large players in the crypto industry that have announced plans to launch their airdrops. However, many of these airdrops have not performed as expected.
For example, EigenLayer (EIGEN), the largest restaking player in crypto, has dropped by 23% from its highest level on Oct. 1. Its fully diluted market cap has fallen below $5.7 billion.
Similarly, Wormhole (W) token has slumped from $1.66 in April to $0.28, while Notcoin (NOT) has dropped from $0.030 to $0.0080. Others like Catizen, Hamster Kombat, and Pixelverse have also dropped sharply from their all-time highs.
One reason for the sell-off is that these new tokens are competing with meme coins, which have become highly popular among traders.
Additionally, many of these projects have only airdropped a portion of their tokens, leading to the potential for more dilution in the future. In Grass’s case, the airdrop will represent just 10% of all tokens, meaning the rest will be released periodically. As a result, there is a likelihood that the grass token will drop after the airdrop occurs.
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