Tornado Cash passed its first governance proposal to make its native token – TORN – transferable yesterday afternoon. Tornado Cash offers a way for users to privately send funds between any two addresses using an anonymity pool, meaning tokens sent through the mixer can not be tracked between the sending and receiving address. It also […]
Tornado Cash offers a way for users to privately send funds between any two addresses using an anonymity pool, meaning tokens sent through the mixer can not be tracked between the sending and receiving address. It also features a compliance feature to allow any users to submit a past transaction note to prove their funds were not used for malicious purposes.
To bolster liquidity and decentralize ownership of the protocol, Tornado Cash airdropped vTORN – a voucher representing a claim on future tokens- to 7,500 past users’ addresses. Now, less than two weeks after those vouchers were distributed, the community has banded together to lift the transfer restrictions.
Given the only circulating supply was the 5% of tokens distributed through the airdrop, TORN quickly jumped to as high as over $400 to a market cap of $44M, which implies a fully diluted valuation of $2B, as investors scrambled to get their hands on one of Ethereum’s best-kept secrets.
Now, users are able to participate in privacy protocol by contributing to “anonymity mining,” which rewards users for depositing liquidity with TORN tokens.
The protocol designed an extensive system of ‘anonymity points’ (AP) to protect those who participate in the program by redeeming AP for TORN using a custom AMM solution and shielded accounts.
The drop goes to show that the Ethereum community is starting to take on-chain security much more seriously, with solutions like Aztec, Secret Network, and Umbra looking to add to the growing stack of ways for users to better protect their on-chain identity in a fully transparent ecosystem.