Hegic Protocol announces ‘gradual’ launch of governance for long-term users

Decentralized Funding Protocol Hegic has announced a launch of soft governance to reward its users over the long term.

According to an April 19 announcement, Hegic plans to reward its most loyal users with its new gHEGIC governance token, which deviates from the public aerial landings and harvest farming campaigns that have become a popular means of spreading governance in the DeFi industry.

Users using gHEGIC can vote in future Hegic improvement proposals.

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

“With the soft launch of Hegic governance, the most active and long-term focused users of Hegic will own the protocol in terms of their impact on the future.”

Users meeting specific criteria can participate in Hegic’s governance, including traders who purchase four or more options contracts 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 days without withdrawing.

In addition, Hegic initial bonding curve offering, or ICBO, participants who have not sold any HEGIC token since the incentive launched in September 2020 will receive the governance tokens, as well as the most active members of the project on Discord.

In addition to being eligible to receive the protocol’s upcoming governance tokens, merchants and LPs eligible for governance will be given the opportunity to receive $ 500 worth of HEGIC in exchange for providing feedback on the platform.

The minting and distribution of the governance token is currently scheduled to begin on May 1.

The beta version of the protocol, called Hegic v888, launched in October 2020 and has gained a lot of traction ever since.

In the first quarter of 2021, 1,368 individual traders purchased 3,200 ETH options and 1,500 wBTC options worth a cumulative volume of $ 291 million. The total value locked at the end of the quarter was $ 59 million, although it has since dropped to $ 57 million, according to DeFi Llama.

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