Improving Community Distribution

Distributing tokens to users through airdrops and ongoing liquidity incentives: Airdrops distribute tokens to users based on their past actions. They may be high-value users of other protocols or have previously used the present protocol — however, this approach rewards past behavior over future commitment. There is no assurance that these pe

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Early versions of token distributions have led to unsustainable dynamics wherein speculators are rewarded instead of those who are adding consistent value to networks through actual usage.

Incentive DesignTokenomics are a tool for aligning the incentives of participants in a network. It is extremely important to identify what behavior is required from each participant in an ecosystem in order for the network to achieve a virtuous cycle. Equally important is designing suitable token incentives that encourage the desired market behavio... See more

That said, the high frequency of airdrops has also created a culture in crypto where many prospective contributors join a community with the sole aim of maximizing their chances of getting airdropped tokens in the future — regardless of how invested they are in the community as a whole, or how slim the chances of these airdrops happening actually a... See more

Airdrops are inefficient token distribution mechanisms since they don’t measure how valuable of a contributor a token recipient is Why reward a token to someone if they aren’t going to contribute to the network? We need to be better than just rewarding early users

The Three Components of Crypto Success: Product/market fit, Community participation, Sufficient decentralization (community ownership)

The need for product/market fit is obvious. Without a product people want, there are no users, no business, and it will be difficult to sustain a community for long. Community participation and decentralized control

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