Coda Protocol creates a grant program to reward active participants with mainnet tokens

Coda Protocol created a token grants program, dubbed Genesis, to help maximize token distribution and bootstrap a network of block producers leading up to its mainnet launch. One-thousand lucky winners, as selected by Coda creator O(1) Labs, will each receive 66,000 tokens (altogether, 6.67% of the initial coda supply). These recipients must stake all of their token grants on the network for four years post-launch and assume the role of a block producer within Coda’s Proof-of-Stake (PoS) system. Coda also released a new whitepaper today, detailing the economics of its PoS design.

Why it matters:

• Token distribution (i.e., the concentration of wealth) is one of the many measurements used to quantify a project’s level of decentralization. But thanks to the advancement of token sale tactics and allocating tokens to founders and foundations, a significant number of projects exhibit a high concentration of wealth. PoS networks and on-chain governance systems (Coda will have both) can heighten this concentration of token ownership and its associated problems since both designs reward token hoarding. Coda’s Genesis token grants are a step in the right direction, and the project should continue to explore more ways to increase token distribution and accessibility (in a meaningful, non-airdrop way) pre-launch.
• Coda has already completed two phases of an incentivized public testnet. Despite the competitive nature of each event, there is no indication yet that users will receive mainnet token rewards for participating. As explored in one of our previous Pro Research reports, testnet competitions tied to mainnet token rewards can help widen the breadth of token distribution to active participants. Coda’s Genesis selection process might not be arbitrary, but it’s not as clear cut as some other distribution mechanisms.

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