One of the earliest crypto exchanges for conducting swaps, ShapeShift which was founded by Erik Vorhees has announced plans to fully decentralise its exchange, dissolve its corporate structure, and stage the largest crypto airdrop in history.
According to a post on its official website, ShapeShift will be airdropping 60% of the total FOX (its official token) supply of 1,000,001,337 tokens to the ShapeShift community, beating Uniswap’s record back in September. Per this, ShapeShift plans to airdrop 340 million FOX tokens to over one million users who traded $1 or more of Ether (ETH) or any ERC-20 token through the platform prior to June 9, 2021. Both current and past users of ShapeShift are eligible to receive the airdrop.
Erik Vorhees founded ShapeShift in 2014 and has grown its user base to over 1 million customers by the end of 2020. Its growth was however stalled due to mandatory KYC/AML reporting as enforced by regulatory authorities. As the DeFi industry picked up steam in 2020 up until July of 2021, Vorhees started making plans to toe the DeFi path. According to Vorhees, the decision to dissolve the company’s corporate structure and transfer governance rights to the users was inspired by the DeFi community, which has grown significantly over the past year. In January, ShapeShift went ahead to integrate with Uniswap, Balancer, Curve, Bancor, Kyber, and other leading DEXs in the space.
“Inspired by the broader DeFi community, we’ll now help pioneer a new model of economic coordination for the 21st century. No corporate entity, no banks and no borders. The tools are ready. Our customers, and the broader crypto community, are now the primary stakeholders of a decentralized, open-source digital asset platform for the world.”
Accordingly, all of ShapeShift’s code and infrastructure will be open-sourced in the coming months. Per the company update on its website,
“Anything that cannot be open-sourced in the short-term will be run by the Foundation, with the intention of it open-sourcing and decentralizing when possible in coordination with the community.”
As there will be no corporate structure saddled with the daily administration of the new entity, ShapeShift will be run by FOX holders. These will govern all important decisions of the project. This includes governing the ShapeShift DAO—a new DAO treasury endowed with over 240,000,000 FOX Tokens (24% of all FOX).
ShapeShift’s latest decision does not come much as a surprise as Erik Vorhees, its founder, has been actively canvassing for decentralisation by corporate entities. In May, Vorhees while speaking at the Cryptocurrency and Hayek Conference at George Mason University, titled his presentation: “Decentralization & Use of Knowledge in Society.” An excerpt from his speech says:
“Amid the volatility, the periodic disasters, the silly dog memes, people often miss just how profound cryptocurrency as a social and economic phenomenon has become. This is a phenomenon where one-and-a-half-trillion dollars of wealth has been created in just over a decade. [...] Where lending and exchange markets have formed to trade billions of dollars of value per day and yet which have no office, no CEO and are run by no company.”
Liquidity mining for FOX token will begin on Friday, July 16, 2021.