Degen Transforms from Social Platform Tipping Token to Native Gas Token on L3 Chain, Surging Over 50 Times in March Alone.
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$Degen Originated on Social Platform Farcaster
Birth of Degen Chain
$Degen Surges 50 Times in One Month, Provoking Controversy
$Degen Originated on Social Platform Farcaster
Degen was initially launched as an ERC-20 token on the public chain Base on January 7th. Its goal was to reward token holders with airdrops for Base and Farcaster ecosystem builders, content creators, and users, further incentivizing ecosystem growth.
Based on the activity and interactions of Farcaster users, Degen daily distributes a Tip Allowance, which is the maximum amount users can use to tip others. Tipping does not reduce the users’ airdrop quota; instead, it is deducted from the Tip Allowance. The recipient of the tip will receive the next token airdrop quota, as shown in the figure below.
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Degen Q3 Ranking
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Birth of Degen Chain
With the $1.5 million funding from institutions such as 1confirmation by the end of February, Degen laid the foundation for further expansion of its ecosystem.
On March 29th, Degen officially announced its collaboration with infrastructure developer Syndicate to launch Degen Chain.
Degen Chain adopts Arbitrum’s Orbit framework, with its subsidiary protocol AnyTrust ensuring Data Availability (DA), and uses the public chain Base as the settlement layer, designed as a “low-cost” L3 blockchain.
What’s more, Degen Chain directly utilizes $DEGEN as the native Gas token for the chain, emphasizing that Degen is the first community token with its own L3.
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DA does not store historical data? Data availability does not equal permanent availability
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$Degen Surges 50 Times in One Month, Provoking Controversy
Degen has risen from $0.001 to $0.056 since March, with a 52-fold increase. Its market capitalization is now ranked 217th, with a TVL of approximately $10.96 million, ranking 88th.
On-chain analysts pointed out that Degen Chain had over 272,000 independent transactions within a few days of its launch, with a trading volume close to $100 million. Over 7,500 smart contracts and 2,300 tokens are circulating on the chain, but most of them are scams.
The hype surrounding Degen Chain recently sparked criticism from the CEO of Polygon.
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Degen
Degen Chain
DSWAP
L3
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Further Reading
How to Ensure Airdrops Are Not Considered Witch Addresses?
Layer 3 Discussion | 0xHamz: Is Building L3 Necessary?