Shade Protocol Snapshot Q&A and Updates

Greetings Shade Protocol community,

On November 7th, 2021 at 5:00 pm UTC +0, the snapshots for the Shade Protocol update began. These snapshots will come to a close December 13th at 5:00 pm UTC +0.

There has been a range of questions asked since the beginning of snapshots. The aim of this blog post is to offer clarity whenever possible, but before we tackle some of these questions we need to start with the two guiding principles all feedback operates under:

Principle #1

As a general rule of thumb, if communication ever seems opaque as it pertains to details surrounding staking and the airdrop, it is a direct result of the core contributors wanting to protect the integrity of the airdrop.

Principle #2

To be guaranteed the airdrop rewards, you have to be staked for the full 36 days starting Nov 7th. If you started staking after November 7th, there is a chance you receive airdrop rewards. However, it is not guaranteed.

Some Shade community members are frustrated by the lack of clarity surrounding Principle #2 in terms of the language of “no guarantee” versus an outright no. Please see Principle #1 for clarity concerning why this language was chosen for Principle #2.

Continuing onwards, the following are a set of questions from the Shade community surrounding snapshots, airdrop, and staking:

When will the airdrop be available to claim?

The airdrop is targeting end of Q4 to the beginning of Q1. Ultimately, the core contributors and developers will give the greenlight for when everything is good to go. Airdrop script is set, and front-end and infrastructure preparations are already in motion.

Is the airdrop going to appear in my wallet automatically?

The airdrop will not appear in your wallet automatically — you will need to claim SHD from the airdrop from the Shade Protocol website. During this claiming process, a viewing key (or permit system) will be generated on Secret Network such that you claim and see your SHD balance in your Keplr wallet. Note that https://shadeprotocol.io is the official website for the airdrop claim process. Further instructions about where to go in order to claim your airdrop will be communicated via this blog channel, please be weary of scammers!

Where can I see in advance how big my airdrop is going to be?

This exact equation will not be available until after snapshots are complete — however, some approximated basic math can be calculated. With~1,450,000 Shade to be airdropped, 36% to Secret Network, and 32% to ATOM and LUNA, you could infer a rough amount of SHD you might earn based on what percentage of individual stakers will qualify for the airdrop.

Example: You are staking 50,000 SCRT out of 45,000,000 SCRT that staked and qualified for the airdrop on Secret Network. You would earn 0.001111111111111 * (.36 SHD to Secret Network * 1,450,000 total SHD) = 0.001111111111111 * 522000 = 580 SHD. With only 10,000,000 total SHD (including deflationary design) SHD is branded as a scarce, premium asset. Note, this example does not include the airdrop bonus and was generated as an example.

*The above is no guarantee of any results and is a fictional example to give readers an idea of some of the basic math.

What will the airdrop claim process look like?

First, you will navigate to airdrop page of app.shadeprotocol.io — next, you will connect your Keplr wallet. Finally, there will be a simple claim process to earn your airdrop. The core developers are aiming to keep the claim process as simple as possible, and you can count on an adequate number of tutorials and explainers for the SHD claim process.

What wallet will I need for the airdrop?

Keplr wallet is the de-facto wallet for the SHD airdrop. Note that for Luna stakers, there is a process to manually add a connection to your existing wallet on Terra/Luna. There will be educational materials distributed in advance on how to do this, so stay tuned. Specifically, the Secret Network portion of your Keplr wallet will be what you will need to pay attention to, as SHD lives natively on Secret Network. This is one of the first cross-chain airdrops in Cosmos using IBC — the core contributors are excited to take on the challenge!

How do I set up a keplr wallet if I’m currently staking with a different wallet?

How to create a Keplr Wallet for Secret Network

If I add more stake during the snapshot period will I receive more SHD?

The set of snapshots selected from November 7th to December 13th are randomized, such that there is no guarantee that adding more SCRT stake will or will not give you more SHD. We recommend doing this sooner rather than later if you are hoping to optimize the probability of this occurring.

Can I redelegate during the snapshot period?

If you want to guarantee you receive the SHD airdrop, you may. However, you will not be able to qualify for the bonus if you redelegated after the initial snapshot from a non-bonus qualifying node to a node that does qualify.

When is the top 10/25 counted for the airdrop bonus? What if it changes during snapshot period?

The bonus airdrop validator criteria was snapshotted prior to the beginning of snapshots. If you were staked to a node that qualified before the beginning of snapshots that then slips into “not qualifying for bonus” territory, it will still qualify for the bonus. Read the following blog to learn about how to qualify for the airdrop:

Shade Protocol Snapshot Details

When and where can I buy additional Shade?

Public testnet for the Shade Protocol front-end as well as Shade contracts are targeting December of 2021 to January of 2022. Please join the Shade Protocol discord and express interest in participating in the testnet in the “testing” channel! There may be airdrop testing on testnet that happens in advance where participants will be rewarded, so be sure to get involved!

When will Tokenomics be released?

The core contributors are excited to share these details soon. Originally, it was planned these would be released prior to the beginning of snapshots. However, there is an additional feature set that may be added such that tokenomics would be effected. The core contributors refuse to release tokenomics that change after initial publication. Whatever is published publicly concerning tokenomics will be final.

This was a learning lesson for the core contributors, as they were optimistic tokenomics would be prepared prior to the beginning of snapshots. For now, the community can expect tokenomics to be finalized in November.

Interested in the economics of Shade Protocol? Be sure to join in on the discussion in the Shade Protocol discord!

Thank you to everyone involved in the Shade Protocol community! It has been two months since Shade Protocol on Secret Network was announced to the world. Since then, we have seen exponential growth of the community (telegram up to 6.5k, twitter to 15.5k) as excitement has continued to build! We are excited to have you part of the journey, and invite you to contribute to the protocol and community 🙂 Your engagement and energy is deeply appreciated!

Conclusion

Shade Protocol is an ambitious array of application-layer products focused on a simple end user experience that involves the incorporation of privacy by default. These interconnected privacy-preserving DeFi products built on Secret Network will change DeFi as we know it — empowering the next generation of value creation and exchange. Shade Protocol is launching Silk: a privacy-preserving over-collateralized stablecoin pegged to a basket of global currencies and commodities, built on Secret Network.

Without privacy, DeFi is incomplete. Traditional financial markets offer a degree of privacy for users, and as a result offer up greater protections in some capacity than existing DeFi markets. Shade Protocol will be the world’s first truly cohesive decentralized and privacy-preserving financial applications — ushering in a golden era for Web3. Shade Protocol will always push for privacy by default, privacy as an expectation, and privacy as the key to unlocking the full value of a decentralized future.

But we can’t do this without community. We need you to join our community and help make Silk and Shade Protocol a reality.

Join The Shade Protocol Community

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