Kamino Finance is the latest Solana and defi project to unveil a token distribution plan based on a points system, a growing trend among cryptocurrency protocols.
Solana-based defi lender Kamino Finance will conduct its on-chain snapshot on March 31 ahead of a crypto airdrop for eligible early supports expected in April. At launch, 10% of Kamino’s 10 billion total supply will enter circulation.
Furthermore, its season one plan earmarked 7% of the total supply for Kamino’s Genesis community distribution. The token-sharing mechanism is linear, based on points users have accumulated over time. This means a user is entitled to 1% of the airdrop allocation if they own 1% of all points generated.
The protocol’s KMNO token unlocks governance privileges for holders, allowing users to contribute to Kamino’s future operations. According to the team, KMNO will deliver future utilities like control over incentive programs, revenue allocation, and voting for risk management strategies.
At launch, the Kamino Foundation will oversee the bulk of governance while laying the building blocks for progressive decentralization. The platform also announced a Season Two distribution roadmap emphasizing protocol participation and sustained user activity.
Kamino Finance hit with backlash over early announcement
Kamino Finance users espoused disappointment with the early announcement despite efforts from the protocol to dampen airdrop farmers. The most common complaint pointed to whales having an opportunity to usurp early supporters, unlike other successful Solana airdrops like Jito.
Kamino Finance is a defi platform that allows users to earn a yield on Solana ecosystem tokens by borrowing and lending crypto collateral. Per DefiLlama, Kamino’s lending product has $514 million in total value locked (TVL), and may be considered a direct competitor to Margin Finance which has a $631 million TVL.