Greetings community,

It is our honor to announce the two year anniversary of the Shade Protocol governance & utility token: SHD. Since the inception of Shade Protocol, we have strived to hold true to multiple paradoxes →

• Protect the privacy of individuals, while remaining transparent with the community

• Ship products aggressively, while maintaining the patience of long term vision

• Listen to the market and the users, but never lose track of our mandate to empower digital privacy, independence, and global permissionless access to unstoppable & fair finance.

  
  

  Your Money.
  Your Data.
  Your Decisions.

In this two year anniversary we will explore the current distribution of the SHD token and a distribution update known as “The Merge” which will directly empower the decentralized Shade community & DAO to control the future of Shade Protocol with the arrival of Shade Protocol governance close at hand.

The State Of Distribution

33.65% of SHD used, 66.35% remaining

The largest outlay of supply came from the creation of the following products (via grants to external teams as well as use of the dev fund for the operational cost of core contributors) →

• SILK Earn

• SILK Vaults

• SILK Oracle

• CPMM DEX

• DEX Rewards Contract

• DEX Routing

• Pair Factory

• Asymmetric Concentrated Liquidity

• IBC Bridging

• Axelar Bridging

• MetaMask wallet support

• API V1 + V2

• ShadeJS

• stkd-SCRT

• Shade Staking

• SNIP Token Wrapping

• SNIP Send

• SNIP Portfolio

• Bonds

• Query Auth

• Admin Auth Security Layer

• Batch queries

• Multi-execute tx Framework

• Automated Rewards + BuybacksReferrals (in progress)

• Money Market (in progress)

• dSHD (in progress)

• Analytics V2 (in progress)

• FINA debit card (in progress)

• Liquidity Orderbook (in progress)

• Liquidation Engine (in progress)

• DAO DAO (in progress)

• TX History (in progress)

• Audits

• Multichain airdrop

Roughly 35 products / features requiring a development lifecycle & 30+ developers across 15 different teams / contractors have been the lifeblood of setting the stage for the Shade Protocol MetaEngine.

https://shadeprotocol.io/blog/shade-metaengine-an-interwoven-economy

The Merge

With the advent of governance on the near horizon, the following five categories with their respective remaining tokens will be merged into the community pool to be governed by the decentralized SHD tokenholders:

• Airdrop (clawback)

• Staking (real yield model transition)

• Incentivized testing / bug bounties

• Grants

• Advisor + Listing

This bolsters the community pool from 1,000,000 SHD (~$7M / 10% of supply) to 3,700,597 SHD (~$25.9M / 37.05% of supply) to be governed via SHD stakers.

An astute observer will notice that the green portion of the chart combines circulating + vested supply — summating to a larger number than what is currently listed for SHD circulating supply on Coingecko. This is because despite vesting progression & completion for various categories (private raise, grants, dev fund, etc.) many entities have chosen to not claim their earned SHD — thus not directly impacting circulating supply (yet). Another key disclaimer is that of the 1.8M SHD dev fund, none of the dev fund SHD is staked / nor active in any capacity so as to not impact staking yield or governance proposals.

Protocol Liquidity Matching

Another distribution component to note is Protocol Liquidity Match (PLM) — a novel mechanism whereby Shade Protocol loans out tokens in collaboration with other protocols to bootstrap liquidity. This model is favorable as it does not involve an OTC and does not involve any emissions. However, this deal structure was invented prior to full blown decentralized governance; the core contributors are not comfortable categorizing PLM as “LP” without a community vote. As of right now PLM is handled and accounted for from the dev fund until a formal ratification of categorization via the community pool. The following are the 11 protocols that have been partnered with on liquidity deals (accounting for 40%+ worth of ShadeSwap’s volume) for both PLM & OTC liquidity deals:

• Kujira

• Manta

• Andromeda

• FINA

• Persistence

• Levana

• Archway

• Composable

• White Whale

• Sienna

• Stride

Onwards To Governance

https://forum.scrt.network/t/dao-dao-x-secret-network-proposal/7119

With the passing of prop 280 Shade Protocol has helped spearhead and coordinate the cross deployment of DAO DAO which will be usable as open source code by various protocols on Secret Network. With this soon to be deployment, Shade Protocol community will have access to the ability to vote on signaling proposals, community spends, parameter changes, as well as the creation of SubDAOs to solve & coordinate in the name of Shade Protocol growth.

Perhaps most importantly is there is something meaningful to govern — with an increasing amount of fees, rewards, & parameters to be stewarded and managed!

Conclusion

Shade Protocol is an array of connected privacy-preserving applications built on Secret Network. Shade Protocol is the most mature blue chip private DeFi ecosystem in all of crypto — boasting private LSTs, DEXs, lending/borrowing, tokens, and more.

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Information provided in this post is for general informational purposes only and does not constitute formal investment advice. Please read the full disclaimer at shadeprotocol.io/disclaimer before relying on any information herein.