Hegic Protocol announces 'gradual' governance launch for long-term users

Decentralized finance protocol Hegic has announced a soft governance token launch especially designed to reward its long-term users.

Hegic Protocol announces 'gradual' governance launch for long-term users

According to an announcement published on April 19, Hegic intends to reward its most loyal users with its new governance gHEGIC token via public airdrops and yield farming campaigns. Users holding gHEGIC will be able to vote in future Hegic Improvement Proposals. 

Hegic is a decentralized on-chain derivatives protocol that allows users to purchase calls and put options to speculate on Ethereum and Wrapped Bitcoin (wBTC). Users can provide liquidity to the protocol by selling options to buyers, earning a share of premiums paid to the pools.

To participate in Hegic governance, users must meet specific criteria including traders who purchase four or more options contracts that are acquired since the launch of Hegic v888, and liquidity providers who have provided at least 1 ETH or 0.05 wBTC to pools for more than 100 consecutive days without withdrawing.

Hegic initial bonding curve offering (ICBO) participants who have not sold their HEGIC token since September 2020 when the incentive was launched, will receive the governance tokens.

In order to be eligible to receive the protocol’s forthcoming governance tokens, traders and LPs who qualify for governance will have the opportunity to receive $500 worth of HEGIC in exchange for providing feedback about the platform.

Minting and distribution of the governance token is currently slated to begin on May 1. However, the beta version of the protocol, dubbed Hegic v888, was launched in October 2020 and has since gained significant traction.

At the time of writing, HEGIC tokens were trading up 3.2% over the past 24 hours at $0.175, according to the data from Coingecko.