In our commitment to continually broaden our offerings, we are introducing a new project addition - Degen.
This article provides you with a comprehensive overview of the Degen project, its native token, tokenomics, functionalities, and its potential impact on the crypto ecosystem.
What is Degen?
Degen is an ERC-20 token and meme coin that was launched in January 2024. It is a new kind of cryptocurrency that operates within the Farcaster ecosystem - a decentralized Web3 social protocol that is the backbone of social apps like Warpcast.
The primary goal of the Degen project is to revolutionize online content creation by making it possible for users to reward content creators with Degen tokens when they post quality content. This unique points system recognizes valuable contributions. In the process, Degen has solved one of the biggest conundrums for social sites and community forums - how to incentivize user engagement.
With a current market capitalization of $1.3 Billion, it is clear that Degen is doing something right and has caught the attention of token investors looking to get in on the next big thing.
Overview of the Degen Project
Let’s begin by examining some of the features of the Degen token that warrant investing in this token.
Airdrop 1
The Degen project began by distributing tokens via Airdrops. The very first airdrop came to a close in 2024, and the Degen team was overwhelmed by the impressive engagement and support from the community. To claim their Airdrop 1 rewards, users simply connect their wallets. The claim period for this initial airdrop will run until May 1, 2024.
Airdrop 2
In Season 3 of the Degen airdrop, users earn points on the Farcaster platform by receiving tips from others. Tippers are given a daily allowance of Degen tokens. These tokens are visible once their wallet is connected. In order to leave a tip, users comment on a cast with a message like "40 $Degen" which indicates the amount they wish to tip. In certain boosted channels, tips received an additional multiplier. Degen holders can claim their Airdrop 2 Season 2 rewards by connecting their wallets and the claim period for this round of airdrops will last until April 30, 2024.
Tip Allowance
Users get a daily tip allowance determined by several factors. Most importantly, giving tips does not reduce a user's Degen balance in their wallet. However, there are some requirements to qualify for a daily Degen tipping allowance on Farcaster:
- Users must connect their wallets.
- Hold a minimum of 10,000 Degen tokens.
- Have posted at least 3 original casts.
- New users are required to wait 48 hours before being activated in the system.
Liquidity Mining
Another feature of Degen is Liquidity mining. The project incentivized a liquidity provision on the Uniswap V3 Degen/WETH pool. It featured a 0.3% fee tier and users earned points based on the amount of liquidity they contributed and how well it aligned with the prevailing price range. There was no need to lock LP NFTs. The next opportunity to claim liquidity mining rewards was set for April 11, 2024.
Aerodrome Incentives
Further to the Uniswap V3 liquidity mining, Degen also established an Aerodrome Degen/WETH liquidity pool that was eligible for independent incentives on the Aerodrome platform. Users were encouraged to contribute liquidity wherever they preferred. Degen liquidity providers could claim their Season 1 rewards by connecting their wallets. The claim period for these incentives ended on April 11, 2024.
Degen Tokenomics
The tokenomic structure of the Degen Token is as follows:
- Total Supply: The token has a total supply of 36.96B with 11.08 billion (29.99%) currently in circulation.
- Community: 70 percent is reserved for the community in the form of Airdrop 1, Airdrop 2, Airdrop 3 and Liquidity Mining.
- Liquidity Pools: 15 percent of the total supply is allocated to liquidity pools, ensuring there's always enough volume for trading. This makes it easier for users to buy and sell.
- Team, investors, and the broader ecosystem: This segment has been allocated the remaining 15 percent of the total supply
It is important to note that a 1 percent inflation rate has been set and will start being implemented in 2028.
Degen Token Statistics
Token Symbol: Degen
Total Supply: 36.96 Billion
Circulating Supply: 11.08 Billion
Total Market Cap: $955.02 Million
Trading Price: 0.02583
Why Investors are Flocking to Degen?
Several unique characteristics have contributed to this heightened interest from investors:
Novelty and Hype
The concept of a "Degen" token can be described as attention-grabbing in the sense that it targets a subculture of traders who embrace risk-taking and meme culture in crypto. This novel approach has generated significant buzz and hype around the project.
Layer-3 Scaling Solution
Degen runs on the Degen chain, an EVM-compatible Layer-3 blockchain built specifically for it. Layer 3 blockchains are built on top of layer 2 protocols to improve scalability and allow for greater customization. One of the benefits of this setup is faster transactions and lower fees compared to the congested Ethereum mainnet thus leading to greater interest by investors.
In addition, Degen Chain's unique architecture, which utilizes Arbitrum Orbit, Base for settlements, and Arbitrum AnyTrust for data availability, is a trailblazer among community tokens.
Strong Community
The Degen community on Warpcast, Telegram, Twitter and other social sites is highly dedicated and passionate. A large, engaged user base often generates substantial hype and drives demand for a token.
Reward System
Finally, one must appreciate the innovativeness of the reward system. Degen has reshaped the Farcaster ecosystem by enabling "Casters" to reward others with Degen tokens for posting quality content. This has effectively bridged the gap between online contributions and real-world value. We expect to see many other large social sites and community forums go this direction to improve user engagement.
How to Trade Degen Tokens on CoinEx?
CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With 900+ tokens supported, including Degen, users can now trade easily and seamlessly.
The Degen token was listed on CoinEx on February 6, 2024, and it quickly surged by over 1380.19%, showcasing significant investor interest. Currently, the total market cap stands at $955.02 Million with a circulating market cap of $286.5 Million, according to CoinEx.
To purchase Degen tokens on CoinEx, follow the steps below:
- Create an Account: Begin by signing up for a CoinEx account.
- Deposit Funds: Once you log in, deposit funds into your CoinEx account via any supported cryptocurrencies or deposit methods available on the exchange. With funds in your account, you can execute trades seamlessly.
- Navigate to Degen Trading Page: After funding your account, navigate to the dedicated Degen trading page on CoinEx. A search box will help you locate Degen trading pairs on the spot trading page. Simply enter the term "Degen" to find the associated trading pairs.
- Select a Trading Pair: Choose the trading pair DEGEN/USDT to trade Degen against USDT (Tether).
- Specify the Purchase Amount: The next step is to specify the number of Degen you want to buy. You can buy them at the current market price or set a limit for your preferred buying price on the trading page.
- Execute the Trade: Once you have specified the amount, proceed to execute the trade. Confirm the details, and if they are satisfactory, submit the order.
By following these steps, you can easily trade Degen tokens on CoinEx.
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