Author: NP Hard
If you've been playing with Base Chain recently, then you must know the hottest token on there called Degen, which has now surpassed a market value of 1.5 billion USD. After the launch of the Degen channel on Farcaster in January 2024, users are allowed to use Degen to reward high-quality content creators. As of now, there are over 83,000 holders, and the number is growing rapidly. So how did Degen grow into a "golden dog" worth 1 billion USD?
Innovative Airdrop Gameplay (Rewards)
Starting in January this year, Degen quickly gained popularity in the Farcaster community, where community members reward their favorite high-quality content by commenting with the format of number of comments + DEGEN. Degen will receive a daily allowance for rewarding others based on the user's Farcaster activity and engagement. The airdrop allowance is based on the total amount of rewards received from others each quarter, so users need to post good content on Farcaster to receive rewards. Many active users even receive daily reward allowances of up to thousands of USD.
Niche Community Spread
The price of Degen saw its first surge along with the community's popularity, during which the market value of Degen increased from 10 million to around 50 million USD, and in turn, Degen also brought a wave of user growth to Farcaster. Teacher Pingfeng's description of Degen's rewards is very apt:
Angel Round Financing
In February, Degen announced the completion of a 490.5 ETH (approximately 1.47 million USD) angel round financing, led by 1confirmation, with participation from Farcaster OG, among others. The funds will be used to develop the Degen ecosystem and community. It can be seen that a portion of the shares were given to some community projects, such as Drakula, laying the groundwork for Degen's utility.
Application Empowerment
The decentralized TikTok on Base Chain, Dracula, went live on March 14th. Dracula was created by Alex Masmej, the issuer of the former fan token $ALEX, and has received investment from Paradigm. Due to the previous grant of 10 million DEGEN (now worth approximately 500,000 USD) by the Degen community, Dracula's app uses degen as a token, allowing users to use degen to purchase their favorite bloggers, similar to Friend tech's gameplay. Users can also earn points by publishing and watching short videos, sharing links, and purchasing creator tokens, and use BLOOD for rewards.
In addition, similar NFT minting platforms like Zora, community projects http://Bracket.Game, and http://Rounds.wtf also use degen as a native token. At this point, Degen's market value has grown to around 70-100 million USD. DegenCast also uses Degen to purchase creators' Keys.
Degen L3
Degen started its extraordinary journey on March 20th. First, on March 29th, Degen announced a collaboration with Syndicate to develop news based on Base's L3. Degen Chain's Gas token is also DEGEN, and as of now, Degen Chain has had over 4 million transactions and over 100,000 wallets.
The second piece of news is that Farcaster's parent company, Merkle Manufactory, raised financing at a valuation of 1 billion USD, led by the founder of Paradigm. Since Farcaster did not issue a token, the community began to view this financing as a positive for $Degen.
With the launch of Degen L3, the entire valuation space has already benchmarked against major public chains, and it can even be said that $Degen has become the token of Base, with its market value skyrocketing to 2 billion USD within a few days.
Inspiration from Degen
Degen originated from the Farcaster community and is rooted in the Base Chain. It can be said that Farcaster/Base mutually achieved success, with Degen's price attracting users, and without the Farcaster community, Degen would not have been created. The Farcaster community project also provides Degen with application scenarios.
Degen's narrative has evolved from a community project for self-entertainment tokens to a social core project utility token, and then to a gas token for public chains, from 10 million to 100 million to 1 billion. Each progression in the narrative represents a magnitude increase in valuation.
The rise of Degen has also provided a path for the development of Farcaster community projects, and future projects like Drakula, DegenCast, and others are worth looking forward to.
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