The fxhash airdrop
Let's unpack the potential and challenges of $artist tokens on fxhash.
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If you’ve been around the generative art scene, fxhash needs no introduction. Since 2021, they’ve been a major force in open, code-based art, with 5,500 artist released collections, 1.8 million artworks minted and $33 million traded in secondary volume.
Now, they’re leveling up with their official token: $FXH.
In this deep dive, we’ll cover:
The airdrop structure, allocations, and how to claim
What sets the fxhash artist token ($FXH) apart
Brainstorming potential use cases for the artist token
Possible drawbacks of the artist token
How much your airdrop could be worth
The fxhash Airdrop Token: FXH
At its core, $FXH is the backbone of a new onchain economy experiment, designed to foster deeper engagement between artists and collectors. It’s not about hype or speculative frenzy—it’s about building new pathways for art NFTs and decentralizing the fxhash protocol. We’ll dive into the team’s utility proposal shortly, but first, let’s break down the airdrop structure.
Here’s the quick rundown:
Total Supply: 1 billion tokens
Token Allocation:
40% Community Airdrop (32% retrospective, 8% aligned communities):
If you’ve used fxhash as an artist or collector, your allocation comes from this pool.30% Ecosystem Treasury + LPs (for growth and liquidity):
This portion supports the protocol’s liquidity, ensuring there’s ‘cash’ for trades, proposals, and projects built on fxhash.30% Team + Investors (1-year cliff, 3-year vesting):
If you’ve been following fxhash’s journey, you probably know they raised $5M about a year ago. This allocation is set aside for investors and team members. (For more details on the fxhash investment round, check out Ciphrd—fxhash’s cofounder—on the podcast.)
If you’ve been an active participant in fxhash’s ecosystem, you might already qualify for a community airdrop. Your allocation is determined by:
Total spent on fxhash
Earnings from sales
Diversity of artists you’ve collected
Consistent activity over time
The exact airdrop date hasn’t been announced yet, but based on the timeline, it’s likely to happen in the next two to three months.
Check your allocation here: beta.fxhash.xyz/token
What’s particularly interesting about this distribution is that artists are the big winners. High-volume sellers are also rewarded—not just based on total spent. The top 20 community airdrop earners are evenly split (50/50) between artists and collectors. Leading the list by a wide margin is zancan, fxhash’s top artist in terms of revenue ($2M), who has also spent over $200k on the platform in recent years.
We’ll get back to fxhash in a bit, but first…
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What Makes $FXH Different?
Most airdrops focus on governance, rewarding top community contributors, and sharing profits. While that’s partly true for this airdrop, $FXH introduces a new mechanism designed to build on the recent hype around crypto tokens.
Introducing $artist Tokens
Launching in Q1 2025, the $FXH ecosystem will feature a no-code launchpad, allowing artists to create their own $artist tokens. According to the announcement, here are some key use cases:
New Collector Incentives: Offering more ways to engage and reward collectors.
Sustainable Liquidity: Providing financial tools to help artists grow.
Utility at the Core: Integrating tokens directly into fxhash’s protocol.
The process is straightforward:
Artists design their token and set up incentives.
Collectors purchase $artist tokens using $FXH.
$artist tokens unlock tailored benefits and provide liquidity options.
The concept isn’t just limited to artists—it could also extend to galleries, museums, DAOs, and curators, creating a broader ecosystem of engagement and value.
As shown in the diagram, the token launchpad uses a mechanism similar to those from platforms like pump.fun, Clanker, Virtuals, and other popular token launchpads over the past year. There’s a bonding curve, a liquidity pool is established, and the token can be freely traded on the open market (think Uniswap). So, what’s different here?
This launchpad is artist-focused. The team actively supports the artist, meaning it’s not an open platform where anyone can launch an $artist token. Instead, the fxhash team curates the process. While this approach has pros and cons, at this early stage, it’s a positive way to cut through the noise, ensure tokens are artist-led, and provide support during the launch process.
In my view, only artists with a strong track record, solid reputation, and an engaged audience will likely qualify to launch tokens in the coming months.
The Big Question: What Can You Do With These Tokens?
The team has mentioned aligned incentives determined by the artists themselves. However, the exact use cases remain somewhat vague, which is what makes this experiment intriguing. Could there be a new form of utility—something we haven’t seen before—that reshapes digital art, tokenization, and the relationship between artists and collectors?
For this protocol to succeed, such a compelling use case needs to emerge.
I’ve been brainstorming potential ways these tokens could be used and their broader implications. Here are some of my thoughts:
fxhash Artist Token Potential Use Cases
1. Protecting Art Value
Imagine fans buying an artist’s tokens instead of directly purchasing their art. This could shift speculation toward the tokens, helping preserve the value of the art itself. By investing in an artist’s token, you can show your support and potentially benefit from their growth, without directly impacting the value of their artworks when you decide to sell.
2. Accesibility
Let’s say you admire an artist, but their works are out of your price range. Sure, there might be some multi-editions or lower-priced pieces available—but they don’t excite you. Typically, it’s the top-tier works that appreciate most in value, while less rare pieces lag behind. In these cases, purchasing the artist’s token offers an alternative way to “collect” a part of their work. The token may experience more steady price movements (up or down) compared to the artist’s lower-valued pieces.
3. Secondary Fees
Tokens could provide a new revenue stream for both fxhash and artists. With every secondary token sale, both earn a fee. Compared to NFTs, tokens (like memecoins, AI agent tokens, or native platform tokens) often generate significantly higher trading volume. For artists who are used to earning royalties from NFT sales, a successful token launch could potentially be 100x or even 1000x more lucrative.
4. Creative Experiments
Tokens could provide new opportunities for collaboration or support an artist’s work through rewards or other mechanisms. They might be used to engage collectors, explore creative methods of interaction, or encourage community-driven projects. While the concept offers room for experimentation, its success will depend on how effectively artists and their communities can put these ideas into practice.
Drawbacks from $artists Tokens
It’s not all smooth sailing—there are several cautious considerations to keep in mind. Here are a few:
1. Unsucessful Token Launches
When an artist releases a new collection or artwork, the reception can vary. It might sell out quickly, spark secondary market activity, and boost the artist’s profile. Or it might go unnoticed—something that happens to the majority of artists. However, if a piece of art doesn’t perform well, it’s not the end of the world. The art still exists, and the artist can continue creating. Dedicated collectors usually stick around.
With fungible tokens, the stakes are higher. Artists typically get one chance to launch their token. If the launch doesn’t gain traction or fails entirely, there’s little room for recovery under the current protocol setup. Furthermore, backlash from those who lose money is almost inevitable. Attempting to launch a second or follow-up token might damage credibility and be perceived as a “rug pull.”
2. Legal Aspects
The current crypto environment might feel relaxed when it comes to token launches, with launchpads popping up everywhere. The political shift in the U.S. toward a more crypto-friendly stance has encouraged greater activity. However, the legal landscape for crypto remains one of the most complex and unpredictable.
Launching a token tied to your name carries significant legal implications, which can be career-altering if not handled correctly. On the upside, fxhash might serve as the legal entity behind the token launch, offering some degree of artist protection.
Regardless, it’s crucial to consult a legal expert and invest in full legal protection, especially if this is your career path.
How Much Can My Airdrop Be Worth
To wrap up, let’s look at some predictions on how much your airdrop might be worth. First, it’s important to note that predicting token value is challenging. The best we can do is compare it to similar projects.
Here are the market caps of recent and comparable projects:
$Pengu by Pudgy Penguins:
Current: ~2.5B
All-Time High (ATH): ±3.5B
Magic Eden:
Current: ~467M
ATH: ±1.1B
$Rare by SuperRare:
Current: ~95M
ATH: ±400M
Based on these comparisons, I’d estimate that the $FXH token could land somewhere between Magic Eden and $Rare. While there’s a chance it could surpass Magic Eden, it’s worth noting that fxhash is a smaller platform in terms of users and volume. However, its strong community could positively influence the token’s value. Magic Eden also faced issues during its airdrop, like wallet connection problems and FUD, which may have impacted its performance.
If I had to predict, I’d say fxhash has a chance to hit a $400M–$500M market cap, then settle between $100M and $200M. Of course, there’s always the possibility it could exceed these ranges, even doubling or tripling them in the short term.
As for the long term, the token’s value will likely be driven by the success and adoption of $artist tokens. However, I won’t speculate on that just yet.
With those two scenarios in mind ($500M best case, and $100M average case), here is how much your tokens could be worth:
So, if my estimations are correct, one $FXH could be worth between $0.10 and $0.50, meaning 1,000 $FXH might be worth anywhere from $100 to $500.
That’s it for today, friends! This is likely the last email of 2024.
Thank you for being a subscriber—it truly means a lot.
Until next year,
- Kaloh
PS: You can read the official documentation from fxhash here.