How does Degen originated (DEGEN)?

Degen (DEGEN) originated as a reward token for participants in the Farcaster Degen channel. Initially conceived as a meme coin, it has since garnered a significant following from developers, crypto content creators, and enthusiasts who have invested in the coin. 

At its inception, 15% of the total supply was airdropped to active members of Farcaster's Degen channel, and there are intentions to eventually airdrop 70% of the token's total supply.

What is Degen?

Degen is a well-liked channel on the Farcaster protocol, a decentralized social media platform with a format similar to X. Degen enables Farcaster users to "tip" others for sharing interesting content. Those who receive tips from the Farcaster community earn points based on the engagement their content generates. Users with enough points receive DEGEN tokens through airdrops.

The tokens are distributed through three airdrops, with the second airdrop in progress. To be eligible for the current airdrop, a user must have held at least 10,000 DEGEN in a Farcaster-connected wallet for a minimum of 48 hours and have posted at least three casts. Qualifying users receive a daily tip allowance in Degen points to tip other Farcaster users.

Degen is the leading channel within the Farcaster ecosystem in terms of total casts and ranks high in the reaction-to-cast ratio.

What is the history behind Degen?

Farcaster's Degen channel introduced the DEGEN cryptocurrency in January 2024 as a community token to recognize active engagement and high-quality content contributions. This innovative approach quickly invigorated the channel and the broader Farcaster ecosystem.

Before DEGEN's launch, Degen was a small social community without much distinction from the many other small channels on Farcaster. Since DEGEN's popularity has grown since January, several apps have incorporated it as their native token for functions beyond simple social media tipping. For instance, the short video social app Drakula now uses DEGEN for trading fee payments and for providing community grants to creators.

By late March 2024, the project had launched its own Layer 3 Degen chain to support decentralized apps (DApps) centered on social interaction and other areas. DEGEN serves as the chain's native cryptocurrency, facilitating gas fee payments much like Ether (ETH) does on the Ethereum blockchain.

What is the utility of DEGEN?

The situation becomes somewhat unclear at this point. There is limited information available about DEGEN's use within Farcaster. Some reports indicate that DEGEN holders may gain access to exclusive content or have voting rights on the platform. Nonetheless, the specifics remain vague, making it challenging to evaluate its true worth.

This lack of clarity is a typical issue with meme coins, whose swift fluctuations often rely more on hype and speculation rather than solid fundamentals.

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