MetaMask To Launch Its Own Token and DAO

The popular Ethereum wallet “MetaMask” is officially launching its token, as confirmed by ConsenSys CEO Joseph Lubin. The team will also reportedly launch a Decentralized Autonomous Organization (DAO) for funding the wallet.

What is MetaMask?
MetaMask is a crypto wallet software that depends on the Ethereum blockchain. It allows clients to engage in a mobile application or a browser extension to access their Ethereum wallets. This decentralized application offers secure, decentralized social messaging, payment networks, file storage, and file sharing without leaving the mainstream social media networks. Launched in 2016, MetaMask is one of the biggest non-custodial wallets in the world of DeFi.

MetaMask has recently shown tremendous growth by surpassing over 30 million active users. It has grown by 40% since November since the support of ConsenSys. In addition to providing a wallet service, MetaMask also provides swaps allowing users to exchange tokens from within the wallet.

Since the DeFi summer of 2020, popular DeFi platforms like Uniswap and 1Inch have airdropped a supply of tokens to their early supporters. The free token giveaways for community members have been quite lucrative for users of these apps. This trend led to speculation that MetaMask, one of the most important DeFi tools, would also airdrop a token to its community of users.

What will be the role MetaMask token and DAO?
Last month, at the ETHDenver conference, MetaMask Lead of Operations Jacob Cantele stated that MetaMask believes in “doing it over time and doing it in ways that are meaningful and doing it in ways that are not a cash grab… It’s also not something where we’re going to put our project in jeopardy of either regulator or give governance to ‘airdrop farmers.”

Thus, we have Joseph Lubin, co-founder of ConsenSys as well as Ethereum (ETH-USD), confirming a MetaMask token is in the works.

MetaMask’s token, which has previously been counterfeit, has likewise been kept under wraps. However, some believe it will evolve similarly to the Uniswap token, which was distributed to early software users as an airdrop.

Details regarding the role of the token are still scanty. As ConseySys had revealed that MetaMask DAO will be the prime funding mechanism. This method of using a DAO as a funding mechanism is gaining more traction in the crypto world, with platforms like Endaoment, Assange DAO, Charity Blockchain DAO, and others following the same pattern.

Thus, MetaMask’s DAO will not determine the project’s progress, even though DAOs are often envisioned as an alternative governance model. Instead, it will only act as a financing tool, similar to how other donation-focused DAOs have done in the past. Apart from that, not much information regarding the DAO was released.

Will MetaMask airdrop its tokens?
ConsenSys Ceo, Joseph Lubin, disclosed that Metamask will not risk the project by handing it over to airdrop farmers.

What are airdrop farmers? It refers to people or companies who seek to gain massively from airdrops by creating multiple wallets before a new token is launched. When they get the tokens, they sell them all, dumping the price on other investors.

Therefore, it seems as if not everyone will qualify for the token simply by owning a wallet. There might be specific criteria to be met before getting the token. You may need to have managed a certain volume or for a minimum length of time before being considered eligible for the airdrop.

In conclusion, the announcement that MetaMask releasing tokens is an exciting step. Following this, we are looking forward to seeing how their partnership will progress. But how good of an investment will MetaMask be once its crypto is available?