Liqwid DAO NIGHT Airdrop Allocation

Temperature Check
20

  1. The most important point is the origin of the allocation. The Glacier Drop was determined by ADA balances at the snapshot on the Cardano network. In Liqwid pools, those balances consisted entirely of ADA supplied by individual lenders. The protocol address appeared in the snapshot only because it aggregated these user deposits. Without supplier deposits: • the lending contracts would have held no ADA • the snapshot balance would have been zero • the $NIGHT allocation would not exist This shows the eligibility was created by supplier capital, not the protocol itself. A simple counterfactual illustrates this clearly: If suppliers had kept the same ADA in their wallets instead of supplying it to Liqwid, they would have received the Glacier Drop directly. Depositing assets into a non-custodial protocol should not cause users to lose rewards they would otherwise receive. ⸻

    1. Consistency With Existing Reward Treatment

    Liqwid has historically treated rewards generated from supplied ADA as belonging to suppliers. For example, ADA supplied to the protocol is delegated to stake pools, and the resulting staking rewards are distributed pro-rata to suppliers. From a supplier’s perspective, the Glacier Drop allocation is economically similar: it is determined by the same underlying ADA balances. Maintaining the same pass-through treatment preserves predictable protocol behavior and fairness for liquidity providers. ⸻

    1. Long-Term Alignment With Liquidity Providers

    Liquidity providers supply the capital that enables Liqwid’s lending markets. Maintaining a clear precedent that rewards tied to supplier capital accrue to suppliers strengthens trust and encourages deeper liquidity in the protocol. A one-time treasury allocation may provide short-term benefit, but long-term protocol health depends on consistent alignment with liquidity providers.

  2. Suggested Approach To maintain consistency and supplier alignment:

    1. Recognize that the Glacier Drop allocation derives from supplier-provided ADA captured in the June 11 snapshot.

      1. Distribute 100% of the claimed $NIGHT tokens pro-rata to suppliers based on their snapshot balances.

      2. Governance may simply ratify this distribution as confirmation of supplier entitlement

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