Non-custodial cryptocurrency exchange ShapeShift has completed its second FOX token drop – dubbed “fairdrop” – as part of a broad commitment to decentralization that was first announced in July.
The 6,613,000 FOX token drop has been distributed to more than 33,000 members of the DAO community, ShapeShift announced Tuesday. These holders were previously not eligible for the Airdrop reward because their tokens were stuck in staking or liquidity operations.
A proposal to change the token distribution process to include members of the DAO community was submitted on September 16, receiving massive support.
As UKTN reported, ShapeShift dumped 340 million FOX tokens to more than one million users in July after the company announced it was dissolving its business structure – an industry first – in part of a broad commitment to decentralization.
In a follow-up interview with UKTN, CEO Erik Voorhees described decentralization as an “iterative process”, as some parts of an organization are easier to open than others. As part of this process, ShapeShift established a foundation to oversee the shift to decentralization. This foundation, Voorhees said, will become less relevant as the open source process develops in the years to come. At that time, ShapeShift will be best described as an open source, multi-chain, self-perpetuating cryptocurrency platform for all users.
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The modern premise of decentralization has been made famous by Satoshi Nakamoto, the pseudonymous creator of Bitcoin (BTC), who ushered in the blockchain revolution in a 2008 white paper that explained the merits of a peer-to-peer electronic payment system. Many blockchain projects that have emerged since have promised decentralization, although in practice their operations have been closer to ‘shadow centralization’.
Recently, Securities and Exchange Commissioner Hester Peirce warned that DeFi projects that did not adopt full decentralization risked going against federal regulations. In an interview with The Defiant in August, Peirce said:
“If you want to be decentralized, you really have to be decentralized, and that will then put you in a different category from a regulator’s point of view, because it’s just not something we’ve dealt with before.”