- Cryptocurrency exchange ShapeShift has decided to stop operating as a corporate firm and give control of its operations to the hands of its users.
- The exchange will become a decentralized autonomous organization controlled by FOX token users.
- Over 1 million users will receive FOX tokens through its airdrop, pushing its price up by over 200%.
Leading non-custodial cryptocurrency exchange ShapeShift has decided to terminate its corporate structure and decentralize its operations. Users will be able to take control over the platform, in which it will become a decentralized exchange.
ShapeShift airdrops FOX tokens to over 1 million users
ShapeShift was founded in 2014 by Erik Voorhees is now shifting its entire codebase and technology to be open-sourced in the coming months.
The firm stated that the changes are part of the platform’s commitment to take the exchange “further in line with the true vision of immutable, decentralized finance.” As part of the transition, the Switzerland-headquartered exchange will also create a non-profit foundation to align with the vision of DeFi.
Any parts of the code and infrastructure that cannot be open-sourced in the shorter term will be run by the foundation until decentralization is possible.
Voorhees strongly believes that decentralization is vital for enabling an immutable financial system, as to which he cites the reason behind the decision. He was inspired by the broader DeFi community, and he hopes to become a pioneer in modeling the “economic coordination for the 21st century.”
Since traditional banking regulations forced the exchange to implement stricter Know-Your-Customer and identity verification processes, DeFi and DEXs would restore the exchange’s original vision.
The global digital asset exchange will cease operating as a formal corporate company and is only beginning to start its long process of becoming a decentralized autonomous organization (DAO), controlled by the users of its platform that holds its FOX token.
ShapeShift has started the process by airdropping cryptocurrency to over 1 million of its customers. More than 60% of the total FOX supply of roughly 1 billion tokens was allocated to its community. Over 1.1 million recipient addresses will include users of other decentralized exchanges, including Uniswap, SushiSwap, Yearn, Aave and a few others who are also eligible.
The amount of FOX tokens airdropped to users are based on the frequency of trading on the platform prior to June 9. Those who have completed over 100 trades will receive 8,500 FOX tokens.
Since the announcement, FOX token price has rallied, surging by over 243.5% in the past 24 hours, reaching nearly $1. The token was launched in November 2019, with a supply of just over 1 billion coins. ShapeShift users received $10 in free trade volume every month through FOX token.
Last month, the exchange added a new functionality for FOX tokens, helping users pay for gas when trading on ShapeShift. Users were able to offset a portion of fees depending on the amount of FOX tokens they hold.