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DEGEN is emerging as a leading community-centered blockchain initiative, recently launching their own layer-3 chain after seeing a massive rally in token price and user base.
As a user-driven project, DEGEN aims to redefine engagement through active participation. A key aspect of DEGEN’s goal is to foster an environment where community involvement drives growth and innovation.
The purpose of this article is to examine the genesis and evolution of DEGEN, from its token launch and dedicated team to its cutting-edge technology and robust community engagement. A number of key milestones will also be discussed, such as airdrops and pivotal integrations that have marked its short history.
DEGEN tackles the exclusivity and centralisation prevalent in crypto. Launched by Jacek Trociński, a former data engineer with an excellent understanding of blockchain technology and community dynamics, DEGEN was designed to democratise access to cryptocurrency benefits. It sought to address the lack of genuine user engagement and the barriers to entry for smaller investors by promoting a more inclusive and participatory ecosystem. Trociński envisions a platform where every member can contribute to and benefit from the network’s growth, not just a select few.
Jacek’s background in data engineering and architecture equips him with the skills to design and implement these robust solutions. Alongside him, the project benefits from the expertise of developers and strategists deeply entrenched in the crypto and tech industries.
The DEGEN ERC-20 token launched on January 8 on the Base network. The idea behind the token would be that users could earn points or rewards if they were active on social media.
DEGEN also allows the community to propose, vote on, and implement change. By decentralising the development process, DEGEN fosters a diverse and resilient ecosystem where innovations and improvements are driven by community consensus, ensuring that the platform evolves in alignment with the needs and interests of its users.
The DEGEN Chain uses a novel and advanced approach for its layer-3 solution, designed to extend the functionality and scalability of existing layer-2 technologies. It is built on top of Arbitrum Orbit, which is known for its rollup capabilities that help in scaling Ethereum smart contracts while preserving security. Additionally, DEGEN Chain uses the Base layer-2 protocol for settlement, ensuring robustness and high transaction throughput.
“One of the things I really, really wanted was for DEGEN chain to have DEGEN as the native gas token,”
Jacek Trociński told Blockworks
The $DEGEN token experienced a significant surge, increasing 56-fold from March 1, 2024, to April 1, 2024.
The chain also employs AnyTrust technology for data availability, which is crucial for maintaining the integrity and reliability of the blockchain. AnyTrust ensures that data is available in a manner that is verifiable and accessible, preventing data manipulation and loss. This integration of cutting-edge technologies not only enhances the efficiency and effectiveness of transactions on the DEGEN Chain but also significantly reduces costs for users and developers. The combination of these technologies provides DEGEN Chain with the tools to support a scalable, secure, and decentralised platform, offering substantial advantages to its community.
Within the DEGEN ecosystem, Farcaster, the decentralised social network, plays a crucial role. A large part of the token’s recent rise has been due to its integration with decentralised social media platform Farcaster, and it’s unique tipping mechanism, which allows users to reward each other for valuable contributions and interactions.
https://warpcast.com/~/channel/yfarmx
The DEGEN Chain has already distributed a lot of its token supply to its users, to boost engagement and solidify its community. The airdrops targeted active community members on Farcaster, incentivising participation and rewarded long-term holders, ensuring their continued involvement and support for the network
The tokenomics of DEGEN are designed with a clear focus on sustainability and growth. The total supply of DEGEN tokens is capped at 37 billion, with a distribution strategy that allocates 70% of these tokens to the community through airdrops, participation rewards, and other incentives. This community-centric distribution is aimed at maximising decentralisation and user engagement.
Additionally, 15% of the tokens are reserved for liquidity provisions to ensure smooth trading and another 15% for the development team and future ecosystem enhancements. The tokenomics also include a modest inflation rate of 1% starting in 2028, designed to encourage continued participation without diluting existing holders significantly.
The DEGEN Chain has marked several significant milestones that have crucially shaped its trajectory and reinforced its community-driven ethos. A notable event was the integration with Drakula.app, which expanded DEGEN’s utility by enabling new functionalities and applications, further broadening its user base.
Drakula App is an innovative social media platform focused on video content, operating on the blockchain. It integrates closely with the DEGEN ecosystem, enhancing user interaction by allowing users to earn cryptocurrency through social activities like watching and sharing videos. This platform positions itself as the first video client on the Farcaster network, bringing unique opportunities for creators within the DEGEN community by offering financial incentives through a creator fund and the novel concept of trading social media creators like assets.
Another major initiative launched just this week was ‘DEGEN Week’, a series of events specifically designed to empower developers and enrich the DEGEN community. Throughout the week, developers will participate in various workshops, including a session on how to effectively use DEGEN’s REST APIs to broadcast transactions. These workshops are crucial for fostering a deeper understanding of the DEGEN Chain’s capabilities and for encouraging innovative application development.
Make sure to join!
DEGEN Week is aimed at accelerating ecosystem growth and has announced it will distribute 10 million $DEGEN in grants to developers for creating and integrating new projects on the chain. Syndicate and 1confirmation, as partners, contributed an additional 500,000 $DEGEN to support these initiatives. These grants will be instrumental in catalysing development and innovation within the DEGEN ecosystem.
As DEGEN continues to evolve, its influence on the decentralised social finance landscape is expected to grow, potentially leading to broader adoption of user-governed platforms. The project’s commitment to fostering a robust, community-driven platform may even set a precedent for future blockchain developments, highlighting the potential of community-centric approaches in the evolution of blockchain technology.
DEGEN block explorer: https://explorer.degen.tips/
