Pudgy Penguins Payout Dispute: Airdrop Farmers Seek Fair Compensation

Introduction

The shutdown of Abstract, a Ethereum L2 developed by the Pudgy Penguins team, has led to a demand for compensation from airdrop farmers who were rewarded with XP points. The farmers, led by Charles Moscoe, want the Pudgy Penguins team to unlock PENGU tokens to them.

Background

Abstract rewarded early users via XP points for the past two years, but the project team has decided to shut down the L2 due to its failure to find product-market fit and be competitive in key segments.

The Demand

Moscoe, founder of venture fund GM Capital, has led the demand for compensation, arguing that the farmers have been rewarded with tokens that are now worth nothing. He has proposed that the remaining unlock supply of 26B PENGU, worth $212M, be shared among the community, team, and liquidity operations.

Debate

The debate over the demand has sparked a heated discussion, with some supporting Moscoe's call and others arguing that the shutdown is a necessary business decision. Some ecosystem teams have also pledged to support the campaign.

Market Impact

The demand has led to a decline in PENGU prices, with the token dropping about 2% and potentially extending to 9% and retesting $0.0076.

Conclusion

The outcome of the demand remains uncertain, with the Pudgy Penguins team yet to respond to the farmers' demands. The Pudgy Penguins community seems to be against the idea, and it remains to be seen whether the team will agree to the demands.