Airdrop farmers are demanding compensation in the form of unlocked PENGU tokens following the closure of the Abstract L2 protocol. The group, led by Charles Moskov, founder of the venture fund GM Capital, intends for the Pudgy Penguins team to directly unlock PENGU tokens for the farmers. Moskov stated, "They (the Pudgy Penguins team) have already made hundreds of millions of dollars selling PENGU. So why not distribute the remaining locked tokens among XP holders?"
Airdrop farmers are early users of the protocol. They are usually rewarded with tokens (airdrops) when a project launches its token. Before reaching this stage, they earn reward points based on their activity (exchanges, trading, staking, etc.). Essentially, this requires investing funds and providing necessary liquidity to new projects. Abstract, an Ethereum L2 developed by the Pudgy Penguins team, has been rewarding early users through XP points over the past two years. These points can always be converted into the final token when it debuts. However, Abstract will be closed by December, making the token launch unnecessary. According to the project team, Abstract failed to compete in key segments and did not find product-market fit, hence it needs to be closed.
Nevertheless, according to Moskov, this decision will put airdrop farmers in a difficult position, and they should be rewarded for their efforts. He warned that this will affect the team and its reputation. "I have always liked the story of Pudgy Penguins. But I feel the atmosphere has changed, and Abstract users are at a disadvantage. This could have easily been avoided," Moskov added. Currently, the total volume of PENGU tokens is 88.88 billion, but only 70.7% has been unlocked and is in circulation. The remaining 29.3%, or about 26 billion PENGU, worth $212 million, will be divided among the community, team, and liquidity operations. It is unclear whether Moskov wants all 26 billion tokens ($212 million) to be given to airdrop farmers. Interestingly, some have supported Moskov's call. In fact, Kona DeFi has promised to step up the campaign. Following the discussion, the price of PENGU fell by about 2% and may decrease by up to 9%, testing the $0.0076 mark. It remains unclear whether the team will agree to the demands, as the Pudgy Penguins community seems to be against this idea.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.