Cap, the Franklin Templeton‑backed stablecoin protocol, announced on Friday that the “Stabledrop” reward for users will be reduced to $4.2 million, down from the roughly $12 million promised in February, and the founder refuted claims of misdirected funds.
Revised Stabledrop Allocation
The company clarified on X that the Stabledrop will be distributed in its dollar‑pegged stablecoin, cUSD, and that the total payout will equal $4.2 million. This figure represents the complete amount raised from the most recent token sale, which the protocol intends to allocate exclusively to the reward program.
Token Sale Mechanics
Cap originally aimed to raise capital through a token sale valuing the project at $250 million and offering 10 % of the CAP supply. In the June round, the sale was adjusted to a 5 % supply offering with a minimum valuation of $75 million, ultimately collecting $4.2 million and achieving bid prices that implied valuations as high as $106 million.
Market and Investor Impact
With approximately $230 million locked in its DeFi contracts, according to DefiLlama, Cap’s reduced payout tests investor confidence as the protocol expands its credit services. The Q1 2026 investor update disclosed a $100 million revolving credit facility extended to Susquehanna Crypto, a Cap operator and seed investor, underscoring the platform’s broader ambitions within the crypto market.