Degen’s tokenomics favor widespread distribution and rewarding engagement within the Farcaster community. It was intended to reward active members of the Degen channel through three airdrops.
Airdrop 1 marked the initial distribution phase and 15% of the total supply was awarded to active channel participants, ensuring that early supporters and contributors were rewarded for their engagement. The top earner in season 1 received almost 4.2 million Degen.
Airdrop 2 was divided in two seasons and aims to distribute another 20% of Degen supply across the community, weighted in proportion to how engaged the casters are. Airdrop 3 will distribute the remaining 25% from the 60% reserved for the community. Of the remaining 40%, 10% are used for liquidity, 15% as a reward for liquidity providers, and 15% for the ecosystem. Degen will be inflationary from 2028, increasing its supply by 1% per year.
