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With its upcoming governance coin, Hegic will award long-term sellers, LPs, hodlers, and Discord users.
The protocol for decentralised finance Hegic also announced a soft governance launch to reward its loyal customers.
According to an April 19 announcement, Hegic aims to reward its most faithful users with its new gHEGIC governance token, departing from the common public airdrops and yield farming campaigns used to spread governance in the DeFi market.
Users who are hoarding gHEGIC will be able to vote on potential Hegic Improvement Proposals.
Hegic is a decentralised on-chain derivatives protocol that enables users to speculate on Ethereum and Wrapped Bitcoin by purchasing call and put options (wBTC). Users may contribute to the protocol’s liquidity by offering options to customers and receiving a portion of the premiums charged to the pools.
“With the soft launch of Hegic governance, the most active and long-term oriented users of Hegic will own the protocol in terms of their influence on its future.”
Users who follow those conditions, such as traders who have purchased four or more options contracts since the start of Hegic v888, and liquidity suppliers who have given at least 1 ETH or 0.05 wBTC to pools for more than 100 days without withdrawing, will be entitled to engage in Hegic governance.
Participants in the Hegic initial bonding curve bid, or ICBO, who have not sold a single HEGIC token since the promotion was introduced in September 2020, as well as the project’s most successful Discord holders, will also collect the governance tokens.
In addition to being qualified for the protocol’s upcoming governance tokens, traders and LPs who apply for governance will be eligible for $500 in HEGIC in return for offering input on the network.
The governance token’s minting and distribution are set to begin on May 1.
The protocol’s beta version, called Hegic v888, was released in October 2020 and has since gained considerable traction.
The first quarter of 2021 saw 1,368 individual traders purchase 3,200 ETH options and 1,500 wBTC options worth a cumulative volume of $291 million. The total value locked at the end of the quarter was $59 million, though it has since fallen to $57 million according to DeFi Llama.
According to Coingecko, HEGIC tokens were trading up 3.2 percent in the previous 24 hours at $0.175.