# \[SIPS-002\] A Proposal for a Sommelier Token Airdrop of SOMM to Select Liquidity Providers **URL:** \ **Category:** Governance\ **Created:** [November 2, 2021, 12:07pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272 "2021-11-02T12:07:44Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 12:07pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/1 "2021-11-02T12:07:44Z")
**Status:** Proposed **Author(s):** Hooded\_Towels **Type:** Text **Discussions-to:** [SIPS-002] A Proposal for a Sommelier Token Airdrop of SOMM to Select Liquidity Providers **Created:** 10/31/2021 **Updated:** 11/3/2021 ### Simple Summary It’s time to open a bottle! Given the open discussions on this forum from community members to be rewarded for their Liquidity Provider activities on Sommelier, the Hooded Towels propose the following new SIPS: Direct the Sommelier Network to airdrop 15 million SOMM tokens, from the 150MM Sommelier Community Pool, to Liquidity Providers of the Sommelier Pairings application, Uniswap Liquidity Providers as well as Osmosis Liquidity Providers based on their participation and liquidity participation levels up to October 31, 2021. We propose that the Sommelier Network execute the distribution of tokens no later than December 31, 2021. Sommelier Foundation. If you are interested in the community taking this proposal and conversation to an on-chain vote, please send a signal with 10 SOMM tokens at this Sommelier Address: somm122mg296uvu7yd7v8tzfq3v8ruhrah4vkhfg0gz. We will use this to deposit the 10SOMM required to start the voting period. ### Abstract Sommelier Governance has launched with the Sommelier mainnet. However, the SOMM token remains locked on the Cosmos chain until governance releases tokens into the ecosystem for various activities. Sommelier’s governance system has the opportunity to release tokens to community liquidity providers, Uniswap v3 liquidity providers and Osmosis liquidity providers that are active today. The Sommelier total tokens created at genesis are 300,000,000. 30% of the tokens from genesis are assigned to the Sommelier Community pool. This means that 150,000,000 tokens are available for the network to distribute to the community to launch and grow the Sommelier economic system. We at the Hooded Towels believe that the Sommelier network should assign 10% of the community pool, or 15 million (15,000,000) SOMM tokens to specific groups that will add the most value to the Sommelier economy and ecosystem. The proposed groups include the following: Sommelier Pairings DApp liquidity providers for Uniswap V2 and Uniswap V3, Uniswap V3 liquidity providers on specific pools, and lastly, a snapshot of the active Osmosis liquidity providers who continue to push the boundaries of the next phase of DeFI. We propose to distribute tokens based on the following three key requirements: - Transaction participation by any unique address on the Sommelier Pairings App - Liquidity participation by any unique address on the Sommelier Pairings App - Liquidity participation by any unique address in a a select list of Uniswap v3 pools - Liquidity participation by any unique address in a select list of Osmosis pools. We propose that the Sommelier Network execute the distribution of tokens no later than December 31, 2021. ### Motivation This proposal is motivated by the active conversations in the community [Governance - Sommelier Finance](https://community.sommelier.finance/c/governance/4) where active members of Sommelier have made their voices heard. If Sommelier respects the community and it’s potential to launch the Sommelier ecosystem, we believe that it’s in the interest of the Sommelier network to document a SIPS proposal and submit this proposal for voting onchain using the Sommelier network. We believe that acknowledging the active Liquidity Providers of Sommelier, Uniswap, and Osmosis with a token distribution is a win for Sommelier’s network and community. **UPDATED:** We have also heard from the community that our proposal may fall short of rewarding the Liquidity Providers that took substantial risk and cost to use the Sommelier APP relative to the target Liquidity Providers that have yet to interface with Sommelier. We have heard this feedback from the community and want to address those interests in our update. ### Specification Overview The Specification Overview is as follows: This specification attempts to identify the groups of Liquidity providers in the three main groups: 1. Liquidity Providers on Sommelier IL-Loss App also knowns as Pairings 2. Liquidity Providers on Uniswap V3 pools 3. Liquidity Providers on the Osmosis AMM blockchain We attempt to query the blockchain to snapshot the following metrics of participation: - Address participation - Liquidity size participation - Liquidity duration participation We source addresses from the following data sources: 1. Sommelier Dapp Exchange Contracts 2. Uniswap V3 pools Contracts 3. Osmosis Liquidity Provider snapshot If the vote for this proposal passes, the Sommelier network should distribute the tokens via a transparent process that any community member may be able to review and check the resulting logic that generated the reward addresses. We propose that the Sommelier Network execute the distribution of tokens no later than December 31, 2021. Sommelier Foundation. If you are interested in the community taking this proposal and conversation to an on-chain vote, please send a signal with 10 SOMM tokens at this Sommelier Address: somm122mg296uvu7yd7v8tzfq3v8ruhrah4vkhfg0gz. We will use this to deposit the 10SOMM required to start the voting period. ### Technical Specification We attempt to query the Ethereum and the Osmosis blockchains to snapshot the following metrics of participation: 1. Address participation 2. Liquidity size participation 3. Liquidity duration participation **Address Participation:** Defined as any Ethereum address that used the Sommelier application and its underlying contracts to add liquidity to any Uniswap V2 or V3 pool up until October 31, 2021 will receive a participation award of SOMM tokens. The only requirement for participation should be a successful Uniswap transaction to add liquidity. **Liquidity Size Participation** : Defined as any Ethereum or Osmosis address that added any amount of liquidity to a Pairings App Position and a Uniswap V3 or Osmosis pool. Distribution awards occur according to the size of the address participation with greater rewards going to larger liquidity provision activities. **Liquidity Duration Participation:** Defined as any Ethereum address that added any amount of liquidity to a Sommelier Pairings App on any Uniswap V2 or V3 pool and any direct liquidity on the selection of the toop Uniswap V3 pools, but must have held that liquidity for a certain amount of time. Distributions are awarded according to the duration of the address participation with greater rewards going to longer duration. Liquidity duration calculations were not available for Osmosis at the time of this proposal, but this may change based on the community’s feedback. We breakdown the proposed distribution of the airdrop of 15MM SOMM tokens into the following Table: | Liquidity Provider Source | Proposed Distribution | Distribution Type | | --- | --- | --- | | Sommelier Pairings App | 3,200,000 | Address Participation | | Sommelier Pairings App | 2,000,000 | Liquidity Size & Duraton | | AXS-WETH-03 | 300,000 | Liquidity Size & Duraton | | DAI-WETH-03 | 300,000 | Liquidity Size & Duraton | | DAI-WETH-005 | 300,000 | Liquidity Size & Duraton | | DAI-FRAX-005 | 300,000 | Liquidity Size & Duraton | | WETH-sETH2-03 | 300,000 | Liquidity Size & Duraton | | FEI-USDC-005 | 300,000 | Liquidity Size & Duraton | | FRAX-USDC-005 | 300,000 | Liquidity Size & Duraton | | FRAX-USDT-005 | 300,000 | Liquidity Size & Duraton | | FTM-WETH-1 | 300,000 | Liquidity Size & Duraton | | LINK-WETH-03 | 300,000 | Liquidity Size & Duraton | | UNI-WETH-03 | 300,000 | Liquidity Size & Duraton | | USDC-WETH-03 | 300,000 | Liquidity Size & Duraton | | USDC-WETH-005 | 300,000 | Liquidity Size & Duraton | | USDC-USDT-005 | 300,000 | Liquidity Size & Duraton | | WBTC-WETH-005 | 300,000 | Liquidity Size & Duraton | | WBTC-WETH-03 | 300,000 | Liquidity Size & Duraton | | WBTC-PAX-03 | 300,000 | Liquidity Size & Duraton | | WBTC-USDC-03 | 300,000 | Liquidity Size & Duraton | | WBTC-USDT-03 | 300,000 | Liquidity Size & Duraton | | WETH-USDT-03 | 300,000 | Liquidity Size & Duraton | | WETH-USDT-005 | 300,000 | Liquidity Size & Duraton | | ATOM-OSMO | 200,000 | Liquidity Size | | AKT-OSMO | 200,000 | Liquidity Size | | ATOM-DVPN | 200,000 | Liquidity Size | | ATOM-JUNO | 200,000 | Liquidity Size | | ATOM-XPRT | 200,000 | Liquidity Size | | DVPN-OSMO | 200,000 | Liquidity Size | | AKT-ATOM | 200,000 | Liquidity Size | | JUNO-OSMO | 200,000 | Liquidity Size | | XPRT-OSMO | 200,000 | Liquidity Size | | ATOM-CRO | 200,000 | Liquidity Size | | CRO-OSMO | 200,000 | Liquidity Size | | REGEN-ATOM | 200,000 | Liquidity Size | | REGEN-OSMO | 200,000 | Liquidity Size | | ATOM-IRIS | 200,000 | Liquidity Size | | IRIS-OSMO | 200,000 | Liquidity Size | | ION-OSMO | 200,000 | Liquidity Size | | LUNA-OSMO | 200,000 | Liquidity Size | **Total Tokens Distributed: 15,000,000** ![Sommelier SOMM Airdrop Distribution(1)](https://canada1.discourse-cdn.com/flex030/uploads/sommelier/original/1X/aa94bc3b0d9fd50ab5d34ebb9a4ca41c6c76a164.png) ### Rationale This proposal is a UPDATED DRAFT that we hope to open to conversation with the community. Below we summarize the three key behavioral reasons that anchor why we think the Sommelier network should vote on this specific proposal and its implementation: **Sommelier Community** “Sommelier needs to be grateful to early sippers and fairly reward them with Sommelier governance tokens for their contributions.” is a reasonable expectation shared by user @vardhanam on the forum here: [Retrospective airdrop for Sommelier early users & supporters](https://community.sommelier.finance/t/retrospective-airdrop-for-sommelier-early-users-supporters/138). We believe that the community call for participation in Sommelier Governance and the Sommelier Economy. Given the community feedback, we think the adjustments we propose will align with the comments of this SIPS section. **Osmosis Liquidity Providers** We are aware that Sommelier is a Cosmos SDK chain. Therefore, we think Sommelier should align with the greater Cosmos ecosystem. We think the Sommelier network should encourage the eager Liquidity Providers on Osmosis to help the SOMM token acquire price discovery quickly. A token airdrop to these members should help encourage this activity. **Uniswap Liquidity Providers** The Sommelier Network should continue to appeal to the Uniswap V3 community of Liquidity Providers. As Sommelier launches it’s SOMM ERC20 token, we expect Uniswap Liquidity Providers to wake up to the opportunity to participate in the Sommelier ecosystem and will bring their liquidity with them. ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 1:31pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/3 "2021-11-02T13:31:16Z")
Uniswap Pools for Airdrop were based on the Pools with the largest volume of liquidity across Uniswap V3 as well as the pools that seem to be the most popular on Uniswap Pairings app. If you go to the Pairings App, the Uniswap v3 pools listed show up at the top of the list. If someone LP to Uniswap V3 pools NOT listed, they will get participation tokens only. This avoids the problem of dropping tokens to big whales in small pools. ---
**Author:** ![Autonomy](https://avatars.discourse-cdn.com/v4/letter/a/f4b2a3/32.png) [@Autonomy](https://community.sommelier.finance/u/Autonomy)\ **Post date:** [November 2, 2021, 1:40pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/5 "2021-11-02T13:40:13Z")
I support the proposal. Looks fair and has a good reach to attract many people to SOMM. Are those unbonding on Osmosis during the snapshot also included? ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 1:49pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/6 "2021-11-02T13:49:17Z")
No. Just the TOP Uniswap V3 pools by liquidity. They are also the top Liquidity Pools on the Sommelier App when you click the dropdown here: [https://app.sommelier.finance/](https://app.sommelier.finance/) ---
**Author:** ![vardhanam](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/vardhanam/32/48_2.png) [@vardhanam](https://community.sommelier.finance/u/vardhanam)\ **Post date:** [November 2, 2021, 1:53pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/7 "2021-11-02T13:53:27Z")
This looks fantastic, thank you @Hooded_Towels ! I agree with this proposal (if that means anything without being in Foundation and voting with 10 SOMM). Cheers 🍷 ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 2:05pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/9 "2021-11-02T14:05:49Z")
We are the Hooded Towels! We are cute too! ---
**Author:** ![vardhanam](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/vardhanam/32/48_2.png) [@vardhanam](https://community.sommelier.finance/u/vardhanam)\ **Post date:** [November 2, 2021, 2:11pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/10 "2021-11-02T14:11:21Z")
Just I dont get one thing - why do we need to incentivize top liquidity providers on UniV3 and Osmosis? How this ppl participated in Sommelier community? I don’t really see their contribution @Hooded_Towels ---
**Author:** ![ResidentTGT](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/residenttgt/32/64_2.png) [@ResidentTGT](https://community.sommelier.finance/u/ResidentTGT)\ **Post date:** [November 2, 2021, 2:14pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/11 "2021-11-02T14:14:07Z")
Is it okay that ~93% of airdrop distribution (Uniswap V3 + Osmosis) goes to people who don’t even know about your project? And it turns out that to early adopters (real Sommelier App users) goes only 0.1 \* 0.07 = 0.007 (0.7%) of the whole community pool? ---
**Author:** ![cryptoaxel](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/cryptoaxel/32/61_2.png) [@cryptoaxel](https://community.sommelier.finance/u/cryptoaxel)\ **Post date:** [November 2, 2021, 2:18pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/12 "2021-11-02T14:18:58Z")
This is ridiculous. We need to mainly be grateful to Sommelier early adopters and not just top whales from Uniswap! I offer to give most of the allocation to Sommelier Pairings users.🍷 ---
**Author:** ![Zulu99](https://avatars.discourse-cdn.com/v4/letter/z/3be4f8/32.png) [@Zulu99](https://community.sommelier.finance/u/Zulu99)\ **Post date:** [November 2, 2021, 2:23pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/13 "2021-11-02T14:23:02Z")
When i read this proposal i first thought okay i can dig that. Seems fair. Then i came to the last part and noticed out of the proposed drop of governance tokens 92.7% are allocated to people who have had not interest in the protocol or have tried it out in any way. THIS IS BONKERS. ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 2:27pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/14 "2021-11-02T14:27:58Z")
Remember: Pairings users are also Uniswap v3 Liquidity providers of the top pools. As such, they get rewarded two times, by this proposal, whereas the others who are ONLY on Uniswap OR on Osmosis get rewarded once only. ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 2:28pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/15 "2021-11-02T14:28:41Z")
You need to take your time and read the proposal again, I think… ---
**Author:** ![besidasko](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/besidasko/32/51_2.png) [@besidasko](https://community.sommelier.finance/u/besidasko)\ **Post date:** [November 2, 2021, 2:35pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/16 "2021-11-02T14:35:33Z")
Are you kidding? Are you wrong? 7% Sommelier App Users and 93% for Osmosis + Uniswap Liquidity Providers … On the contrary, you encourage the use of another platforms, not your own App. I have 3 small pools during last 2 month in Sommelier Pairings App. I am very disappointed with you. So sad. ---
**Author:** ![ResidentTGT](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/residenttgt/32/64_2.png) [@ResidentTGT](https://community.sommelier.finance/u/ResidentTGT)\ **Post date:** [November 2, 2021, 2:35pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/17 "2021-11-02T14:35:38Z")
among all Uniswap v3 Liquidity providers our community is a grain of sand ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 2:38pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/18 "2021-11-02T14:38:23Z")
That’s why the community is the only group that gets participation tokens. All others must prove that they are active LPs. ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 2:38pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/19 "2021-11-02T14:38:55Z")
You do realize that all Sommelier users are Uniswap V3 user as well yes? They get tokens TWO TIMES? ---
**Author:** ![Zulu99](https://avatars.discourse-cdn.com/v4/letter/z/3be4f8/32.png) [@Zulu99](https://community.sommelier.finance/u/Zulu99)\ **Post date:** [November 2, 2021, 2:46pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/20 "2021-11-02T14:46:54Z")
I did. I disagree with the numbers. Leans way to heavy onto Osmosis LP dumpers and Uniswap whales. Changes needed sers. 1. Allocate more tokens here. Like a lot more. Its the true believers. 2. Allocate around 10% of the airdrop to Osmosis LP’s. 3. Scratch the uniswap drop or at a minimum change it so its not proportional. ---
**Author:** ![besidasko](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/besidasko/32/51_2.png) [@besidasko](https://community.sommelier.finance/u/besidasko)\ **Post date:** [November 2, 2021, 2:47pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/21 "2021-11-02T14:47:07Z")
Yes, that’s understandable. But you have to change the proportions. For example - 50% for Liquidity Providers on Sommelier 30% Liquidity Providers on Uniswap V3 pools 20% Liquidity Providers on the Osmosis AMM blockchain now 7% for Sommelier Users it looks humiliating ---
**Author:** ![Hooded\_Towels](https://yyz2.discourse-cdn.com/flex030/user_avatar/community.sommelier.finance/hooded_towels/32/69_2.png) [@Hooded\_Towels](https://community.sommelier.finance/u/Hooded_Towels)\ **Post date:** [November 2, 2021, 2:50pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/22 "2021-11-02T14:50:47Z")
You should definitely write this up as a new proposal SIPS-003 and share with the community your rationale. ---
**Author:** ![tejjinxy](https://avatars.discourse-cdn.com/v4/letter/t/e47c2d/32.png) [@tejjinxy](https://community.sommelier.finance/u/tejjinxy)\ **Post date:** [November 2, 2021, 5:05pm UTC](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272/24 "2021-11-02T17:05:36Z")
First of all, thanks for writing up what looks like a fairly good airdrop distribution. My only contention is that while the goal of Sommelier community is to build the community as wide as possible, i am not sure if early users of Sommelier will be fairly rewarded if only 7% of overall tokens are distributed to them. In my individual case, i used Sommelier to open 3 Uniswap V3 positions spending around 1200-1300 USD gas fees. These V3 positions are not included in the select LPs in the list. So i would miss out on receiving those additional tokens while i used Sommelier more than most. Maybe an increase in percentage of Sommelier users would be more fair in my opinion. But ultimately community should collectively decide what is fair for all. [Next page](https://community.sommelier.finance/t/sips-002-a-proposal-for-a-sommelier-token-airdrop-of-somm-to-select-liquidity-providers/272.md?page=2)