Sanctum: The New Era of Liquid Staking

In previous research, we explored how liquid staking changes asset management in PoS networks. Liquid staking technology issues liquid staking tokens ( LSTs ) to represent staked assets and accumulated rewards. We noticed that the total locked amount of liquid staking is growing rapidly, with Solana's staking rate exceeding 70%, much higher than Ethereum's 27%. However, LSTs only account for 6% of Solana's staking supply, while Ethereum exceeds 40%, which provides a significant market opportunity for Sanctum in the Solana ecosystem.

This article will focus on the tokenomics of Sanctum, the recent airdrop and its structure, the success of Alpha Vault, key DeFi partner integrations and listings, the growth of LSTs, and their adoption into Web2.

Token Economy

Sanctum adopts a multi-token system to support its ecosystem. To ensure the liquidity of LSTs, Sanctum introduces the Infinity Pool, a multi-LST liquidity pool that allows for exchanges between all LSTs in the pool. Users can become liquidity providers by depositing any whitelisted LST and earn $INF tokens, which can accumulate staking rewards, benefit from trading fees from the pool, and be directly used in DeFi protocols.

The Sanctum governance token $CLOUD controls the capital and attention within the ecosystem. Partners need to stake $CLOUD to qualify for the Sanctum Verified Partner (SVP) program, while $CLOUD holders vote to decide which partners are accepted.

The total supply of $CLOUD tokens is 1 billion, distributed as follows:

• Launch Liquidity (20%):10% for initial airdrop, 10% for launching liquidity.
• Community Reserve (30%): Managed by the community, used for growth plans.
• Strategic Reserve (11%): Used by the team for ecosystem growth and partnerships.
• Team (25%): allocated to founders and core contributors.
• Investors (13% ): allocated to investors.
• Jupiter LFG(1%): Reserved for Jupiter LFG.

TGE, Airdrop and Community Feedback

The Sanctum airdrop took place on July 18, distributing 10% of the CLOUD tokens, with 5% of 50 million CLOUD allocated to the capital part and another 5% of 50 million CLOUD allocated to the honest part. A total of 108,185 accounts were eligible for the airdrop.

Participants can choose the "long-term alignment" method, waiting to receive tokens and earn greater rewards over time, up to 100%; or choose the "Sanctum curiosity" method, receiving tokens immediately but with no rewards.

The community's response to the airdrop was not as expected, with some users feeling frustrated, especially those who invested a large amount of $SOL, believing they were treated unfairly compared to non-monetary contributors.

The Sanctum team thanks all supporters and clarifies that the honest distribution aims to build a loyal user base. They acknowledge missing some deserving users and promise to review submitted content more carefully in the future.

As of July 24, 12.44 million CLOUD tokens have been claimed, accounting for 24.24% of the total allocation ( including forfeited tokens ). This includes 6.53 million tokens from honest distribution and 5.91 million tokens from capital allocation.

On the same day, Sanctum TGE minted 1 billion CLOUD tokens, allocated 60/40 between the team's cold wallet and the community's cold wallet. From the team's cold wallet, 250 million tokens are used for Liquidity, of which 100 million are allocated to the Meteora DLMM launch pool. The remaining tokens will meet Liquidity needs within the first year. From the community's cold wallet, 150 million tokens are used for launching airdrops and community needs.

The Success of Sanctum Alpha Vault

Alpha Vault is a special feature developed in collaboration between Sanctum and Meteora, allowing long-term supporters to purchase $CLOUD tokens at potentially more favorable prices. Participants can deposit USDC into the vault to receive discounted $CLOUD tokens, but there is a six-month vesting period.

The vault limit is 50 million CLOUD tokens, with a maximum purchase limit of 7.5 million USDC. The initial price of CLOUD is set by the amount of USDC in the vault, ranging from $0.001 to a maximum of $0.5 on the LFG curve.

Alpha Vault was very successful, with an oversubscription of 416%, demonstrating strong interest and confidence in the Sanctum project.

Future Outlook of Sanctum

( CEX listing and DeFi partner integration

$CLOUD has been listed on major exchanges such as Kraken, Bybit, and Bitget, enhancing its Liquidity and accessibility. Sanctum has also partnered with DeFi platforms like Kamino, Drift, Texture, and Orca to expand its ecosystem.

![Sanctum Report: Token Airdrop, Token Economics, and Development Status])https://img-cdn.gateio.im/webp-social/moments-f33c9a7d7dee3c117e76009412652e04.webp(

) Sanctum Launchpad

The Sanctum plan is to create a Launchpad to initiate an on-chain economy within the community. The platform will leverage LSTs to support new projects and innovative products, such as the Pathfinders team using pathSOL earnings to fund free NFT minting.

Sanctum Profiles V2

Sanctum announces an upgrade to its profile feature, allowing users to build reputation and customize their identity within the community. Users will be able to create their own LSTs, monetize their activities, and reward followers with unique content.

Sanctum Pay

Sanctum Pay is collaborating with BasedApp to develop the first debit card supported by LST. Users can directly convert their cardSOL staking rewards into USDC, allowing purchases without needing to liquidate SOL.

![Sanctum Report: Token Airdrop, Token Economics, and Development Status]###https://img-cdn.gateio.im/webp-social/moments-6306c019a9ded6ec73ed153eaba5ee0b.webp(

Summary

Sanctum provides an innovative solution for staking liquidity issues, making staked SOL more flexible in DeFi. Its TVL is close to 1 billion dollars, integrated with multiple platforms, showing growth potential.

The Sanctum project plans to establish a DAO to achieve decentralized governance, ensuring development according to community consensus. Considering these factors, the $CLOUD governance token ) has a market cap of 53 million dollars and an FDV of less than 300 million dollars ###, which is worth paying attention to.

However, the DeFi space on Solana is highly competitive, and Sanctum needs to continuously innovate and provide higher value to maintain its leading position.