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The Connext token distribution event, hosted by Tokensoft, has been declared successful following its multi-day completion. Almost one million web3 users have received the $NEXT token in a new record for on-chain distribution. The success of the $NEXT token allocation has been heralded by its organizers as the prelude to creating a thriving cross-chain ecosystem.
What Next for Connext?
Token allocation events can be fraught due to the complexities of distributing millions of tokens to many users simultaneously. Previous efforts, such as the Arbitrum airdrop, have resulted in service degradation due to networks reaching capacity and gas prices soaring. In this case, the $NEXT token distribution passed without significant incident, allowing recipients to claim their allocation within days of claims becoming available.
As a cross-chain messaging protocol – or “bridge” – Connext Network straddles multiple EVM chains. It’s in the business of helping users and projects move assets efficiently between blockchain networks. The $NEXT token distribution represented a more formidable challenge than the Connext team is accustomed to accommodating, but its team acquitted itself well.
Statistics released by Connext and Tokensoft attest to the $NEXT token distribution’s scope and success. More than 900,000 registered users began claiming their tokens on August 17, with demand continuing apace through to September 5. Registrations peaked at 28,000 users per hour.
Choose Your Chain
One of the things that made the $NEXT token distribution event unique was that users could pick their preferred chain to claim on. Options included Arbitrum, Optimism, Polygon, and Gnosis. Within days of claims going live, more than 40% of eligible users had claimed their $NEXT tokens, with the majority choosing to do so on Arbitrum.
Tokensoft founder Mason Borda reports:
“We were extremely pleased to see that even a sophisticated attack could not compromise our smart contracts or infrastructure. Our uptime and security remained strong.”
Tokensoft is no stranger to token launches, having helped more than 100 projects to raise funds and complete their distribution. However, its work with Connext was a more ambitious affair due to the cross-chain component. It entailed utilizing the xERC20 token standard developed by Connext founders Layne Haber and Arjun Bhuptani. One of the reasons why this token standard is so appealing is because it allows native xERC20 tokens to be created on each chain, eliminating reliance on bridge-managed tokens.
As Mason Borda recounts,
“A lot of projects and tokens are multi-chain or cross-chain — but these capabilities are not native to the underlying infrastructure; which introduces adoption and technical challenges. Tokensoft’s integration of Connext fixes this, and it broadens our capabilities as we support projects throughout a token’s lifecycle.”
With the potentially tricky launch out of the way, the next phase in $ NEXT’s evolution can begin. For Tokensoft, meanwhile, the event has proven that cross-chain distribution can be achieved successfully, paving the way for more projects to seek a similar solution to launch their native assets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.