Announcements > OmiseGO (OMG) Token Distribution December 30, 2017

First announced on August 7, 2017, OmiseGO decided to execute an “airdrop” token distribution of 5% of the outstanding OMG token to ETH holders. OmiseGo later announced on August 23 that the airdrop would be based on user balances at Ethereum block height 3988888, which was mined on July 7, 2017, at 16:36:56 UTC.

Distribution Policy

Because this airdrop was announced retroactively, we have decided to use the same methodology employed in the BCH distribution in order to avoid retroactively forcing negative OMG balances on users for ETH/XXX shorts and XXX/ETH longs. In fact, this will continue to be our distribution policy for any “retroactive airdrop” or any situation where we do not immediately support a fork, but decide to credit users sometime in the future.

OmiseGO (OMG) tokens will be distributed based on July 7, 2017, 16:36:56 UTC settled ether (ETH) wallet balances. The methodology for determining a “settled” balance includes:

  • All calculations will use a database snapshot from July 7, 2017, 16:36:56 UTC
  • All net unhedged ETH wallet balances will receive OMG. For example, if at the instant of the airdrop in July a user had a wallet balance of 5.0 ETH and was short 2.0 ETH/XXX, their net unhedged balance at that moment was 3.0 ETH.
  • Margin longs in ETH/XXX and margin shorts in XXX/ETH will not receive OMG
  • Margin shorts in ETH/XXX and margin longs in XXX/ETH will not pay OMG
  • ETH lenders will receive OMG

Due to the large positive net amount of ETH committed in margin positions at the time of the airdrop, the above methodology results in Bitfinex seeing a large surplus or OMG. As such, we will be resolving this discrepancy in the form of a socialized distribution coefficient. In this particular case, the distribution coefficient is computed to be 1.372. Since the OMG airdrop in July was 0.075 OMG for each ETH, the resulting calculation yields 0.1029 OMG per ETH for qualifying balances. Note that if there were more shorts than longs at the moment of the airdrop event in July, the distribution coefficient would have been less than one.