Spark launched its SPK token on Tuesday through a long-awaited airdrop to early users.
Those who lent or borrowed tokens on Spark, or deposited tokens issued by its parent protocol Sky across other DeFi protocols, are eligible to split a pool of tokens now worth roughly $18 million at today’s prices.
Holders of SPK will be able to participate in future Spark governance and stake it to earn more rewards in a future airdrop. Staked SPK may also be used in the future to secure the protocol, Spark said in an X post.
Spark is the fourth biggest DeFi protocol by deposits.
Launch while hot
Spark’s airdrop comes as DeFi projects rush to launch tokens while the crypto market is hot. It is, however, common for tokens to lose value after the airdrops.
In April, crypto social network Zora launched its token, only for it to slump some 75% in the weeks that followed.
In February, bear-themed blockchain Berachain also launched a token. It’s down over 86%.
The launch of Spark’s SPK comes as deposits to the protocol hover just below their all-time high of $8.6 billion. They have more than doubled since March.
Below the Sky
Spark is a lending protocol and a so-called subDAO of Sky, the DeFi protocol that issues the USDS and DAI stablecoins. While Sky issues those stablecoins, holders must deposit them to Spark to earn yield.
Sky’s governance token has jumped 164% since February in response to anticipation for the Spark airdrop and growth of the Sky ecosystem.
SPK has a total supply of 10 billion tokens, which will be distributed over the next 10 years.
65% of the supply will be given out as rewards to those who use Spark and Sky. 23% will be used to support the protocol’s growth, and a further 12% will be given to Spark contributors and team members.
Those who qualified for the SPK airdrop have six weeks to claim their tokens.
Spark has planned to launch its own token since the protocol’s 2023 launch.
The idea to separate parts of the Sky ecosystem into various subDAOs is part of Sky co-founder Rune Christensen’s so-called Endgame plan.
These subsidiary entities will handle most decision-making for Sky, and each subDAO will have its own governance token and structure.
