The SUI blockchain continues to deliver high-potential projects, creating lasting value for its community. While the network hasn’t launched a direct airdrop, it consistently empowers users through indirect incentives—much like APTOS did in its early days. The ecosystem thrives with innovation, and one standout project leading the charge is Scallop, SUI’s premier lending and borrowing protocol.
On July 17, 2024, Scallop launched its Second Loyalty Program, distributing $100,000 worth of SCA tokens (313,353 SCA) via a buyback initiative. This rewards long-term supporters and active participants who contribute to the protocol’s stability and growth.
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What Is the Scallop Loyalty Program?
Scallop’s second loyalty campaign is designed to reward users who lock their SCA tokens to generate veSCA (vote-escrowed SCA). Unlike typical staking models that may lock funds indefinitely, this system offers flexibility and ongoing benefits.
Key Details:
- Participation Requirement: Stake SCA to mint veSCA
- Event Duration: July 17, 2024 – July 21, 2024 (4 days)
- Total Rewards: $100,000 in SCA tokens (313,353 SCA)
- Distribution Model: Daily rewards based on veSCA holdings
- Daily Snapshot Time: 00:00 UTC
- Reward Claim Window: 2 hours after each snapshot
- Minimum Stake: 500 SCA
- Minimum Lock Period: 2 days
Rewards are distributed proportionally—the more veSCA you hold, the larger your share of the daily prize pool. This encourages meaningful participation while ensuring fair distribution.
Is This Just a Way to Lock Up Your Tokens?
At first glance, requiring token lockups might seem like a tactic to trap user funds. However, Scallop’s model is fundamentally different from predatory schemes.
When you stake SCA, you’re not just locking tokens—you’re acquiring veSCA, which carries real utility:
- Governance Rights: Vote on key protocol decisions
- Yield Opportunities: Use veSCA in liquidity pools with up to 20% APR
- Revenue Sharing: Earn a portion of protocol fees
- Flexible Unlocking: Retrieve 100% of your SCA after the lock period ends
This isn’t new—Scallop introduced veSCA mechanics back in March 2024. The current loyalty program simply layers additional rewards on top of existing behavior. In essence, Scallop is using buyback funds to reward loyal users, not trap them.
Think of it as free yield for doing what you’d already do—holding and locking SCA. With daily payouts and full principal retrieval at maturity, the risk is minimal compared to the upside.
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How to Participate: Step-by-Step Guide
Ready to join? Here’s everything you need to know.
Prerequisites
Before starting, ensure you have:
- A compatible wallet: Sui Wallet (install if needed)
- Enough SUI for gas fees (a small amount suffices)
- At least 500 SCA tokens (~$160 value)
Interaction Steps
- Visit the official platform: scallop.io
- Connect your Sui wallet
- Navigate to the veSCA section
- Enter the amount of SCA you wish to stake
- Select your desired lock duration (from 2 days up to 4 years)
- Click Stake and Extend
- Confirm the transaction in your wallet
That’s it! Once confirmed, your veSCA balance will update accordingly.
💡 Pro Tip: Rewards are distributed daily. Check back every morning (around 10:00 AM UTC) to claim your SCA rewards before the next snapshot.
Remember: The event ends on July 21, 2024. After that, no additional loyalty rewards will be issued.
Maximizing Your Rewards: Understanding the Distribution Formula
To help you estimate potential earnings, here’s how rewards are calculated:
Reward Formula
User Reward = (User's veSCA / Total veSCA) × Daily Reward PoolWhere:
- User's veSCA: Your locked token balance at snapshot time
- Total veSCA: Combined veSCA across all participants (~6.75 million currently)
- Daily Reward Pool: $25,000 worth of SCA (split evenly over 4 days)
Example Scenarios
Let’s say you lock:
- 500 SCA for 2 days → Lower veSCA multiplier → Smaller share
- 5,000 SCA for 1 year → Higher veSCA weight → Larger daily payout
The longer and larger your lock, the greater your influence and reward share. This aligns incentives between users and the protocol—encouraging long-term commitment.
Keep in mind: While higher locks yield better returns, always assess your liquidity needs. DeFi offers great opportunities, but capital should never be committed beyond your comfort zone.
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Frequently Asked Questions (FAQ)
Q: Can I unstake before the lock period ends?
No. Once you lock SCA into veSCA, you must wait until the selected period expires to withdraw. Early withdrawal is not supported.
Q: Are rewards guaranteed?
Rewards depend on your relative veSCA share at each daily snapshot. The total pool is fixed at $100,000, so individual payouts vary based on participation levels.
Q: What happens after July 21?
The loyalty program ends. No further bonus rewards will be distributed, though existing veSCA holders continue earning governance rights and protocol benefits.
Q: Is there a maximum amount I can stake?
There is no upper limit. You can stake as much SCA as you own, provided you meet the 500-token minimum.
Q: Where can I track my rewards?
Visit the Scallop app dashboard after each snapshot. Rewards become claimable within two hours of the daily 00:00 UTC checkpoint.
Q: Is this safe? Could I lose my funds?
Scallop is a well-audited protocol on the secure SUI network. As long as you interact only via the official site and safeguard your wallet, your assets remain under your control.
By combining strategic tokenomics with user-centric incentives, Scallop exemplifies how modern DeFi protocols can grow sustainably. Whether you're looking for short-term gains or long-term exposure to SUI’s evolving ecosystem, this loyalty program offers a compelling opportunity.
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