By Michael Scott
The decentralized finance (DeFi) oracles network Pyth is set to unveil its airdrop of PYTH tokens to community members and users. The airdrop estimated to surpass 255 million tokens announced by the Pyth network on Thursday, November 16, starts on Monday.
Eligibility for Pyth Airdrop
The announcement by the DeFi oracles network Pyth indicated that wallets eligible for the airdrop are exceeding 90000. Pyth revealed that the airdrop is set to kick off on November 20 at 2:00 PM (UTC).
The announcement indicated that users of decentralized applications relying on the Pyth network data are eligible. As such, users across 27 blockchains led by Ethereum, Solana, and Polygon are eligible to secure the token allocation. Also, Aptos, Optimism, Avalanche, and Arbitrum users may benefit from the airdrop allocation.
The announcement indicated that the eligibility spans Pyth Network Discord, notably Pyth non-fungible token (NFT) holders and administrators. Such are likely to benefit from the allotment starting in four days.
Following the airdrop unveiling on Monday, November 20, the allotment would remain open until its conclusion on February 18. Pyth encouraged DeFi to confirm their eligibility for the airdrop and PYTH amounts each is set to receive. The users can leverage the network’s airdrop page.
The Thursday announcement indicated that Pyth users in some countries are ineligible to benefit from the airdrop, alleging the existence of mitigating legal factors. In particular, the airdrop excludes the United States and the United Kingdom’s residents.
Additional users labeled ineligible are North Korean residents joined by Cuba, Iran, Syria, South Sudan, and Yemen. Also, the airdrop excludes residents of the Democratic Republic of Congo, among eight other territories.
Pyth native token is set to cap its initial circulating supply at 1.5 billion. Further, the network indicated that 8.5 billion PYTH tokens would become unlocked six months to seven years after unveiling.
Oracle Networks Assume Crypto-TradFi Intermediary Role
The statement explained that DeFi oracle networks such as Pyth assume an intermediary role linking data sources from the off-chain world. It facilitates the execution of DeFi smart contracts relative to the prevailing inputs and outputs aligned to real-world data and events.
The DeFi oracle networks can facilitate smart contracts to automate product ordering whenever the inventory slips to the reorder level. They make it possible to settle agreements hinged on stocks and commodities prices.
DeFi oracle multifunctioning makes them viable to deploy in tracking carbon emissions. Also, users can leverage them to ascertain the tax due if certain carbon emission levels are exceeded.
Oracle networks have become a critical component of the expanding integration of crypto and traditional financial (TradFi) markets. Doing so is possible by deploying the smart contracts to entities running conventional businesses.
Mango Markets Exploit Demonstrates Vulnerability of Oracle Networks
The emergence of oracle networks as information intermediaries leaves them susceptible to exploitation. Such surfaced when a hacker in the last fall successfully drained $100 million by breaching a decentralized exchange (DEX). In particular, the exploiter breached Mango Markets by manipulating the pricing of MNGO tokens.
The airdrop is significant since Pyth ranks fourth-largest by total value secured per the DeFi Llama data. Nonetheless, its value still ranks a dwarf, considering Chainlink, its primary competitor, is nine times more than the value secured. Chainlink commands a 45% market share, unlike the meager 4.83% of Pyth.