Cap has reduced its promised “Stabledrop” airdrop to $4.2 million from about $12 million, after facing growing criticism over the size of the payout.
The stablecoin protocol, which is backed by Franklin Templeton, disclosed the cut after weeks of backlash from users and observers who expected the larger February commitment to be honored. Founder Apollo defended the change and apologized for the reduction, saying the project would not keep the original amount. He also denied accusations that he had routed funds to a wallet tied to his former employer.
The dispute has put a spotlight on how crypto projects handle reward campaigns once they are announced. In this case, the gap is not small. A cut from roughly $12 million to $4.2 million reduces the pool by more than half, and that kind of change tends to draw scrutiny from users who were counting on the original terms. For a project still trying to build trust, the timing is awkward.
Cap did not provide a fresh breakdown in the source excerpt of how the reduced amount will be distributed, or whether any other parts of the reward plan have changed. That leaves the main question open for participants and traders watching the token ecosystem around the protocol: whether the lower payout was a one-off revision or part of a broader reset in how the project manages incentives.
For now, the key items to watch are Cap’s next official update on the Stabledrop, any further response to the wallet allegations, and whether the controversy keeps pressure on sentiment around the protocol. The original February promise is now well below what the project said it would pay, and that alone is likely to keep the story under a microscope.
Cap cuts Stabledrop free token giveaway from $12M to $4.2M after user backlash
The stablecoin protocol Cap reduced its promised free token giveaway from about $12 million to $4.2 million after users criticized the size. This affects participants expecting the original rewards and raises questions about the project’s future incentive plans.