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DAO Craze | SOS Token Airdrops to OpenSea Traders, Developers Expose Contract Risks

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DAO Craze | SOS Token Airdrops to OpenSea Traders, Developers Expose Contract Risks

The NFT community OpenDAO airdropped the token SOS to all users who had previously traded on OpenSea on 12/24. The SOS token also sparked FOMO sentiment similar to earlier projects like ConstitutionDAO and FreeRossDAO, with a price surge of over 3,000% from its low point. However, some developers have pointed out potential risks associated with SOS.

OpenDAO SOS

The team members of OpenDAO are anonymous. 721DAO founder 9x9x9 is one of the core developers of OpenDAO. According to the information on the official website, the total supply of the SOS token is 100 trillion, distributed as follows:

  • 50% OpenSea airdrop
  • 20% Staking rewards
  • 20% Team holdings
  • 10% Liquidity mining rewards

The team plans to use 20% of the tokens for:

  • Art preservation
  • Supporting emerging artists
  • Supporting the NFT community
  • Supporting SOS ecosystem development
  • Compensating victims of OpenSea scams

The airdrop weighting is "Number of transactions on a user's OpenSea * 0.3 + Transaction amount * 0.7". Tokens that are not claimed by June 30, 2022, will belong to the OpenDAO treasury.

SOS Token Distribution｜theopendao

Community Perspectives

BAYC #8903 holder 0xQuit conducted an analysis of the token contract and concluded that there are no abnormalities in the contract, whether users claim or trade tokens.

However, fabdarice, CEO and CTO of digital identity project Quadrata Network, has a different view. He quoted 0xQuit's tweet and also stated that claiming and trading are indeed safe, but the lack of a lock-up period for 50% of SOS tokens outside the airdrop is a concern.

This means that the OpenDAO team can access 50% of the tokens at any time. Additionally, the team can grant any amount of SOS tokens to wallets through valid signatures.

He pointed out that the biggest risk is a Rug Pull, and there is no risk of NFTs or assets being stolen from wallets.

Yearn core developer banteg also retweeted fabdarice's tweet, stating that airdrops alone are not attractive to the community. If looking for a "people's version of OpenSea," LooksRare seems to have a better chance than SOS.

Ethereum core developer eric.eth also stated that if SOS does not successfully launch a vampire attack on OpenSea, it will be worthless. He himself is unsure if SOS's plan is to attract OpenSea users and advises against impulsively buying tokens. He only holds the airdrop to prevent a successful vampire attack.