Improving Community Distribution

We believe this to be true. In reflexive systems the highest goal should be alignment. This is what a flywheel is. Decentralized token systems facilitate this, but careful thought, consideration, and active management is needed to maintain alignment.

One of the most underrated negative aspects of one and done airdrops is that new users can feel like they “missed” an ecosystem. This can actually hurt adoption – “oh the airdrop happened already no point in digging into that ecosystem”.

Tokens are pseudo-equity-like instruments. If you are launching a valueless governance token with no real tangible benefits (relying on memetic quality or hopium) to hold it, non-zealots will inevitably dump the token while the value is > 0.

Generally speaking the goal for you as the protocol owner should be to get your tokens into the hands of the right people (who will use your application and have a high CLV) – those that truly believe in your protocol. If they are not in the hands of users who truly believe in your team or product, they will probably claim and dump them (i.e. findi... See more

A continuous process allows new participants becoming important parts of the ecosystem (participating in new products, governance, etc.) to also be able to capture the similar benefits as legacy users. Lets not punish those later than us on a binary scale, especially if they are coming late and adding more value. You want users who bring the most v... See more

A basic model for evaluating web 2 hypergrowth tech businesses is looking at Customer Acquisition Cost (CAC) versus the Lifetime Value (CLV). Everytime you give away tokens can be likened to web 2 marketing spend (CAC), while CLV is the total of economic rewards (such as protocol earnings) that a user brings by using the platform.

We think airdrops are stupid and furthermore, aside from the 5 minutes of hype, they are overall negative for most protocols. It is no surprise that phrases like “it’s time to responsibly dump my responsibility” are a thing. Freebies just don’t work. If the goal is that the asset should become valuable overtime a free airdrop for a past action is j... See more