The Sui blockchain continues to host a variety of promising projects. Although the network hasn’t distributed direct airdrops to users, it has consistently provided value through its ecosystem. Scallop, a leading protocol on Sui, recently launched its second loyalty program, offering a reward pool worth $100,000 in SCA tokens.
This initiative is designed to reward active participants who stake SCA tokens. The program began on July 17, 2024, and will conclude on July 21, 2024. A total of 313,353 SCA tokens will be distributed to veSCA holders during this period.
Understanding the Loyalty Program
Scallop’s loyalty program encourages users to stake SCA tokens to earn veSCA, a non-transferrable representation of locked SCA. The program uses a fair distribution model based on daily snapshots.
Key Program Details
- Participation Requirement: Stake a minimum of 500 SCA to generate veSCA.
- Program Duration: July 17 to July 21, 2024.
- Total Rewards: $100,000 worth of SCA tokens (313,353 SCA).
- Distribution: Rewards are distributed daily to veSCA holders.
- Daily Snapshot Time: 00:00 UTC each day.
- Reward Claim Time: Available within two hours after each daily snapshot.
- Minimum Lock-up Period: 2 days.
How Rewards Are Calculated
The reward distribution is proportional to each user’s share of the total veSCA supply at the time of the snapshot. The calculation uses the following formula:
- TveSCA: Total veSCA supply across all participants (currently ~6.75 million).
- UveSCA: User’s veSCA balance.
- Treward: Daily reward pool amount.
- Ureward: User’s reward for the day.
The more veSCA you hold and the longer the lock-up period, the greater your share of the rewards.
Is Staking SCA Worth It?
Some users may wonder if staking SCA is simply a way for the project to lock up liquidity. However, Scallop’s model is designed to benefit long-term supporters.
Staking SCA to obtain veSCA is not a new mechanism—it has been active since March. When the lock-up period ends, users can withdraw their original SCA tokens in full.
The loyalty program adds a short-term incentive: participants can earn extra SCA tokens simply by performing regular staking actions during the four-day event. This is effectively a bonus on top of the usual benefits of holding veSCA.
Additional Benefits of veSCA
- Liquidity Provision: veSCA can be used to form liquidity pools with attractive annual percentage rates (APRs).
- Revenue Share: veSCA holders earn a portion of the platform’s revenue.
- Governance Rights: veSCA represents voting power in Scallop’s governance system.
This program should be viewed as an opportunity to earn additional yields rather than a locking mechanism. The project has purchased $100,000 worth of SCA to distribute as rewards, meaning participants are essentially earning extra tokens for actions they may already be taking.
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How to Participate in the Loyalty Program
Prerequisites
- A Sui-compatible wallet (e.g., Sui Wallet).
- A small amount of SUI tokens for transaction fees.
- At least 500 SCA tokens (approximately $160 USD worth at the time of writing).
Step-by-Step Guide
- Visit the Scallop application platform.
- Navigate to the veSCA staking section.
- Enter the amount of SCA you wish to stake (minimum 500 SCA).
- Select the desired lock-up period (minimum 2 days).
- Click “Stake and Extend” and confirm the transaction in your wallet.
- Rewards can be claimed daily after 10:00 UTC.
Remember to claim your rewards each day during the program period. The final distribution occurs on July 21, 2024.
Frequently Asked Questions
What is veSCA?
veSCA is a non-transferrable token obtained by locking SCA. It represents voting power, revenue share rights, and eligibility for reward programs like this loyalty initiative.
Can I unstake my SCA before the lock-up period ends?
No, once you stake SCA for a specific duration, the tokens are locked until the period expires. After that, you can withdraw them in full.
How often are rewards distributed?
Rewards are calculated daily via snapshot and can be claimed within two hours after the snapshot is taken.
Is there a minimum staking amount?
Yes, you must stake at least 500 SCA to qualify for rewards.
What happens after July 21?
The loyalty program ends on July 21, and no additional SCA rewards will be distributed for staking after that date. However, regular veSCA benefits continue.
Are there risks to staking?
As with any crypto activity, staking involves risks including smart contract vulnerabilities and market volatility. Always assess your risk tolerance and do your own research before participating.
Conclusion
Scallop’s second loyalty program offers a limited-time opportunity for Sui network users to earn extra SCA tokens by staking. With a $100,000 reward pool and a straightforward process, it’s designed to reward existing supporters and attract new participants.
The program ends on July 21, 2024, so interested users should act promptly. As always, evaluate your investment goals and risk appetite before locking your assets.