Your Guide to the Elektrik Airdrop

Table of Content

Introduction

Elektrik is a protocol at the heart of the next wave of decentralised exchanges (DEXs). Our mission revolves around invigorating the crypto landscape with cutting edge liquidity solutions and trading innovations. From inception to this very moment, we’ve been at the forefront of DEX and automated market maker (AMM) technology. Our core offerings span across trading and liquidity providing where users will be able to leverage their liquidity with greater efficiency than ever before. Powered by our commitment to our mission and our community, we’re launching our live token, ELTK, through the Elektrik airdrop.

But why undertake an airdrop? Simply to reward, incentivise, and amplify a community of traders and liquidity providers that will constitute the primary users of Elektrik. Yet this isn’t a one-off event; it’s a meticulously crafted multi-phase campaign. The focal point of the airdrop is both token distribution and value creation. Through a variable point-based system, we intend to fuel user engagement, ramp up liquidity, and bootstrap trading volume. Participants in the airdrop will become stakeholders in a growing community. It’s not just about distributing a token, it’s about cultivating an engaged community of traders and liquidity providers for growing Elektrik. 

Why Airdrop?

Treading the churning waters of the web3 world, newcomers may perceive airdrops as an ineffectual token launch strategy. At its core, an airdrop is a method blockchain projects use to distribute tokens, usually free, to eligible participants’ wallets. While critics argue that freely giving away a protocol’s most valuable resource might be pointless, an airdrop’s purpose goes beyond mere giveaways. The reasoning behind airdrops is threefold: token distribution, community building, and promotional weight. Proper token distribution is crucial to foster a decentralised ecosystem, meaning a broader token holding results in a more secure network. Airdrops also transform passive onlookers into active network contributors, sparking conversations and solidifying a shared mission. Moreover, a well-executed airdrop boosts the project’s visibility, creating a buzz around its brand.

The concept of airdrops, which dates back to at least 2014 with the Auroracoin airdrop, has undergone significant evolution. Initially resembling chain letters, they’ve transformed into multi-stage campaigns, employing smart contracts, gamified elements, and social dynamics. This shift not only represents a cosmetic change but mirrors the growth of the web3 economy, the advancement of marketing tactics, and the increasing demands of an informed community over the years. As for how Elektrik fits into this picture, our multi-phase airdrop, loaded with engagement touchpoints and incentives, represents one step further in the evolution of airdrops themselves. Setting out to innovate, we added layers of utility, social interactivity, and value. As such, we can initiate the genesis of our protocol on a positive footing, establishing a symbiotic relationship between the Elektrik protocol and its community.

Our Approach to the Elektrik Airdrop

Navigating the launch is often a ‘make it or break it’ moment for web3 projects. A successful launch kickstarts protocol growth, bootstrapping its community and economy as well as inspiring optimism in its users. Conversely, a botched launch can significantly impact user confidence, potentially dissuading people from getting involved. 

In light of this, our approach to the Elektrik airdrop unfolds through a meticulously articulated four-phase roadmap. This roadmap was specifically designed around incentive structures intended to get people involved with Elektrik in a manner conducive to the long term sustainability of the protocol. Each phase is replete with specific mechanisms to not just distribute tokens, but to cultivate a community with a vested interest in the long-term usage of Elektrik’s suite of products and services.

The gamification of the airdrop comes into play here via a points system that rewards participants for an array of unique actions. Central to this is the choice between our NFT-based Permadrop and the Progressive Claim. With the Permadrop, users can claim ELTK tokens using NFTs, which act as lockable containers for these tokens. Tokens inside an NFT are initially locked for 100 days, but users can extend up to 600 days, earning more tokens based on set multipliers. These NFTs are tradable, retaining their multiplier value, making some more sought-after than others. Alternatively, the Progressive Claim ties token liquidity to DEX-based activities. Following either approach, participants will be classified based on point rankings to distribute tokens. This entire process will be carried out via a four-phase airdrop process beginning with phase 1.

Phase 1: Genesis Phase

Objective

A thriving community engaged with and making use of a product is indispensable in Web3. Recognising this, at the core of phase 1 lies a dual objective: fostering a thriving community and setting up the architectural backbone of our protocol.

Focus

The focus is on social engagement in addition to the launch of the V1 testnet and the V1 mainnet. Additionally, an integral part of phase 1 is the release of our inaugural NFT collection. These NFTs are not only collector’s items but also serve as tokens of membership, granting their holders special privileges within the Elektrik ecosystem.

Developments and Activities

In terms of the social element, we aim for a cohesive community. Our approach to community engagement is multifaceted. Firstly, we are promoting active content sharing, creating an environment where members can engage in discussions about the latest events and protocol updates. Additionally, by organising regular AMAs and webinars, we ensure that our community remains well-informed and aligned with Elektrik’s overarching vision. As users participate, they can accrue points, unlocking special privileges and ensuring our community remains both active and appreciated. These points act as a metric for each user’s commitment to Elektrik.

Of course, the social element, while vital, is only a part of the broader genesis phase. We’re thrilled to announce that our v1 testnet is already live, providing our users with a sandboxed environment to experience Elektrik’s potential. Although this testnet iteration offers a first-hand feel of our ecosystem, it’s the v1 mainnet that will carry the DEX forward. Once the mainnet is launched, every interaction and transaction on Elektrik will be executed on the LightLink layer 2 network.

Desired Outcome

Following the launch of the mainnet, our aim is to catalyse a robust liquidity base for the freshly launched DEX during the summoning phase. This strategic move is intended to attract sophisticated traders and larger whales to the Elektrik mainnet. In turn, these players will amplify liquidity within token pools and drive heightened trading activity. By the time the Elektrik v2 testnet is introduced, the platform should already have a significant community of traders and liquidity providers interacting with the protocol. During the transition to the v2 testnet, users will be introduced to enhanced features such as Decentralised Liquidity Provision (DLP), limit orders, and other functionalities, all of which build upon the experiences of the earlier stages.

Phase 2: Liquidity Focus

Objective

Transitioning into phase 2, the spotlight shifts predominantly onto liquidity provision, the lifeblood of any DEX. This phase is especially significant because it coincides with the launch of our v2 mainnet.

Focus

While a notable focus is on increasing the total value locked (TVL) in Elektrik’s smart contracts, trading remains relevant, albeit with a reduced spotlight compared to liquidity provision.

Developments and Activities

Activities here are focused on the DLP mechanism, requiring users to lock up LP tokens to participate. The activities are not just isolated to DLP; users can also engage with new trading features on the v2 platform. To reward users who participated in Phase 1, a multiplier mechanism has been added. Users who hold onto tokens received in prior phases will enjoy a multiplied rate of reward points. Although trading continues to be incentivised, the more substantial phase 2 rewards are slanted towards liquidity provision, especially involving ELTK tokens.

Desired Outcome

The culmination of this phase is marked by the distribution of the second airdrop, adhering to a claiming process aligned with the inaugural phase. Upon the completion of the airdrop, Elektrik is expected to hold sizeable reserves of liquidity to enable smooth and seamless trading.

Phase 3: Trading Focus

Objective  

If liquidity is the lifeblood, then trading is the heartbeat. Phase 3 is designed around incentivising users to trade, exchange, and interact on the v2 mainnet.

Focus

While the trading incentives take centre stage, liquidity provision isn’t sidelined as we anticipate a boost in total value locked from phase 2. It still carries significance, albeit at a moderated pace compared to phase 2.

Activities

In a bid to foster active participation, users will be awarded points based on their trading volumes. However, trading isn’t the sole criteria; users are also encouraged to engage in activities like regular wallet logins, diversifying by engaging with multiple token pairs, and maintaining a specific daily trading volume. Additionally, for those still inclined towards liquidity provision, rewards are set in place. Users maintaining a designated value of tokens in the liquidity pool are not left out; they too are awarded points, making them eligible for the impending airdrop.

Desired Outcome

The phase’s zenith is the third airdrop, during which users will be able to claim more ELTK tokens. Just as with previous phases, long-term loyalty is prioritised. Holders of Elektrik tokens from previous airdrops are given an advantage in order to reward their continuity and trust. The layers of incentives structures applied during this phase between trading and liquidity provision ensures that participants can claim a generous amount of ELTK tokens, further deepening their engagement with Elektrik’s ecosystem.

Phase 4: Mystery Phase 

The final act, phase 4, is a retroactive airdrop which we have enshrouded in strategic ambiguity. The only criterion for eligibility in this ‘mystery’ airdrop is the necessity for participants to have successfully acquired tokens during all prior airdrop phases. Any participants who fail to do so will miss out on the rewards distributed during the phase 4 airdrop.

Conclusion

Our overarching goal with the Elektrik airdrop is to catalyse the growth of our protocol and prepare it for long term sustainable growth. With the promise of our core technology, little may be needed for germination. Nevertheless, we intend to provide the seeds of our protocol with everything they need to sprout. Hence the meticulously crafted multiple phases; provide the fertile ground for each component of Elektrik to grow and flourish. Although phase 1 has only recently commenced, the growth has already begun. With its commencement, we have seen the first green shoots push through the soil. These early signs of growth are a testament to the fertility of the groundwork we’ve laid, and they herald the promise of a verdant landscape that’s soon to come.