Born as a reward token for users subscribed to the /degen channel on Warpcast, often mistaken for a memecoin, $DEGEN is now attracting attention from numerous exchanges and investors. Thanks to the exponential growth of the layer 2 it was born on, Base Network, this token is gearing up to create its own ecosystem and become the governance token of the homonymous layer3. In this article, I will briefly discuss the token, present some data on its recent performance, and outline the channels where it can be traded and how to obtain it through airdrops.

From 0 to $DEGEN

As stated on the degen.tips reference site, the $DEGEN token was launched on Base network in January (it is just over two months old) to allow Casters (Farcaster users) to reward users for quality content published on the platform. Currently, out of the nearly 37 billion maximum supply, about one-third is in circulation, with over 47,000 holders and a recently reached all-time high of $0.018, marking an increase of over 1400% in the last month (all data in this article is as of the writing date).

At launch, 15% of the total supply was distributed in an airdrop to active users on the /Degen channel of Warpcast as a reward for their contribution to the community. The second phase of the airdrop is ongoing (further details will be explained later in the article), which will allocate an additional 20% of the supply to users. At the end of the second phase, which is divided into monthly seasons, a third and final airdrop equal to 25% of the total $DEGEN supply is planned. From 2028, an inflation rate of 1% is projected.

Another 15% of the supply is allocated to ecosystem development, 10% as an incentive for liquidity mining, and 15% for liquidity provider rewards (distribution completed). Participation in liquidity mining is possible by depositing liquidity into the DEGEN/WETH pool on Uniswap. There is also a DEGEN/WETH pool on the Aerodrome DEX directly incentivized by the platform. To give you an idea, there is over $8 million in liquidity on Uniswap. Considering its young age, this figure is impressive (data as of the writing date).

To conclude this introduction, it’s important to note that the Degen team is implementing the eponymous layer 3 on Base network, which will be EVM-compatible with low transaction fees. There are not many details available yet, but it is quite certain that $DEGEN will play a key role within the network, and given the high-level programmers and creators orbiting around Base, the network will gain significant visibility in the crypto landscape.

Hold $DEGEN, become a $DEGEN

Let’s get down to business. You have two ways to obtain this token: either by purchasing it on one of the DEX and CEX where it is listed, or by earning it through the Web3 social network Warpcast.

DEX and CEX

As mentioned at the beginning of the article, DEXs like Uniswap and Aerodome allow users to trade $DEGEN and provide liquidity for this token. The latter operation is incentivized for airdrops. In addition to these two, other DEXs operating on Base Network such as 0x, KyberSwap, and 1inch allow you to exchange your ETH for $DEGEN and vice versa. To obtain $DEGEN on these platforms, make sure you have ETH or WETH on the Base network. Connect your non-custodial wallet to the DEX, search for the DEGEN/WETH pair, and make your trades.

Recently, some centralized exchanges have also started listing $DEGEN. HTX (formerly Houbi), BingX, and BitMart are among the first CEXs to host the token, but given the performances recorded in recent weeks, it is likely that others will follow their example. To purchase $DEGEN on these CEXs, after registering, deposit USDT (from another wallet or by purchasing directly on the exchange with a card) and make your trades.

Activity on Warpcast

Warpcast is Farcaster’s flagship product, a decentralized protocol dedicated to on-chain social networking. If you are passionate about blockchain and value ownership of your content, switching to this social network will feel quite natural.

Thanks to Frames, apps through which users can interact directly within the platform, and thematic channels, where casters publish their content based on relevance, Warpcast is becoming a standard for major developers and creators in the crypto world (even Vitalik Buterin, founder of Ethereum, has an account). I have extensively discussed this social network in “Farcaster and the Frame Revolution — User guide.”

A Frame on /degen channel

It’s within one of the Warpcast’s channels that $DEGEN is born. After an initial airdrop distribution, it is currently possible to qualify for the $DEGEN Airdrop 2 on Warpcast. The prerequisites are:

• Having a Warpcast account: cost $5/10 depending on the payment method. Having a profile on Farcaster has an annual cost, introduced by the team as an anti-spam measure. More information in the article;
• Hold at least 10,000 $DEGEN in the wallet connected to Warpcast;
• Post at least 3 casts on Warpcast and wait at least 24 hours if you are a new user.

Once these requirements are met, on the degen.tips portal, you can check your ranking position and accumulated points. These points will be converted into $DEGEN that you can claim at the end of each month (the second airdrop is divided into seasons). A claim button will appear when due in the section dedicated to Airdrop 2 on degen.tips.

Eligible users are allocated a daily allowance in $DEGEN, which can be used to send tips to other users by commenting on a post with, for example, “69 $DEGEN.” The allowance is not cumulative (if not spent, it does not add up to the next day’s allowance) and does not affect our points. Through this tool, you can support your favorite casters for free.

Memes I created using https://app.lenspost.xyz/ (the anti-Canva)

The amount of the allowance is calculated based on user cast engagement. You can find the exact formula on Dune. In some channels, tips receive a 1.5x boost (/farcastHER, /FarCon, /frames, /Base, /Dev, /Design, /Frontend, /Founders, /perl, /Product, and /Zora). You can check your daily Allowance not only on degen.tips but also in dedicated frames you will find on Warpcast!

Engagement on Warpcast is not guaranteed, and the risk of being banned for breaking the tacit “no spam” rule is always looming. If your Farcaster ID is banned, the game is over, and to return to Warpcast, you will have to create a new one. Try to post original casts, do not beg other users for tips, and interact with other users’ casts in a constructive manner. In general, avoid spamming.

I reiterate the 5 rules shared by Camille Roux, a Top caster on the /degen channel, which you can use as a guiding light while navigating on Warpcast:

1. Post captivating content;
2. Use your allowance to send tips to other users;
3. Create useful and interesting projects (channels, frames, dapps). If you are not a developer, discover simplified tools for creating frames like lenspost.xyz;
4. Share your art;
5. Actively participate in conversations.

Memes I created using https://app.lenspost.xyz/ (the anti-Canva)

Rockin’ in a free social

To conclude, $DEGEN is not an exact science. A young token, a revolutionary protocol, a decentralized and censorship-free social network, and a rapidly growing community can lead to unexpected developments. My article is just the beginning of this new token and the upcoming layer 3; the rest is in your hands. Remember that no one is obligated to send you tips, and being on Warpcast has intrinsic value regardless of the $DEGEN airdrop.

The bibliography on the subject is still limited, but in addition to my article on Warpcast that I have already mentioned, you can consult the recent contribution of Bitfloorghost, a $DEGEN guru, which you can find here. One thing is certain: we are still ahead with $DEGEN, but it won’t be long before this reality becomes mainstream in the cryptosphere.

Disclaimer：

1. This article is reprinted from [Block Magnates]. All copyrights belong to the original author [Francesco Di Nardo]*. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.