Proposal to whitelist AST with 50,000 BNT trading liquidity limit
Airswap is building infrastructure to connect traditional markets with DeFi, and the $AST token is a governance token. There are no apparent concerns with the security of the erc20 contract; however, the distribution is very concerning.
About 66% of the token supply is in a state of quasi lock-up. In this case, lock-up refers only to the fact that these funds cannot be used without a DAO decision; the core contributors cannot do anything with these funds without consent of the community. This is not nearly as good as it sounds. For example, the AirswapDAO could volunteer a large proportion of these tokens as a bribe to the curve ecosystem, or similar, which is akin to dumping them on secondary markets. Luckily, the proposed BNT funding is fairly small, 50K, and would have little or no observable effect on the protocol’s health even if such an event occurred.
The Airswap Twitter account has acknowledged the proposal.
Close attention should be paid to $AST, and how its DAO decides to use the 66% of the token supply that is currently allocated to nothing. The Automaton will vote FOR this proposal, but increasing the pool further should be carefully managed. For example, it may be worth opening a dialogue re: the external liquidity incentives and external IL protection offered on Bancor3. If the AirswapDAO could contribute even a tiny fraction of this token supply for such purposes, the distribution would be improved, and in the case of applying them to external IL protection, the risk to growing the pool significantly larger is reduced.