At Blockchain, we know that crypto tokens thrive on decentralization and network effects: the more individual users of a network, the more useful and valuable the network’s token becomes. To bootstrap these networks, creators have increasingly turned to airdrops as a simple, transparent method of distributing free cryptoassets to a wide audience. We think that airdrops, when executed properly, have the potential to meaningfully drive decentralization and supercharge network effects.
That’s why we’re thrilled to share a set of guiding principles that will inform Blockchain Airdrops. In a Blockchain Airdrop, token-based network creators distribute tokens directly to our users via our (almost 30 million!) wallets.
Blockchain Airdrops are great for network creators whether they’re looking to drive decentralization for new networks or amplify the reach of existing networks. More importantly an airdrop directly to addresses controlled by users can ensure the power of a network rests in the hands of many, rather than just a few. This is particularly important as protocols increasingly shift to proof-of-stake security models. A properly targeted airdrop can even achieve regulatory goals: a decentralized network is less likely to make its issuer a money transmitter, and less likely to create risks under the securities laws.
Airdrops are good for the crypto ecosystem, too. They serve a discovery function, driving exposure for new assets and creating a testing ground for network participants. They also encourage new and existing users to experiment with new cryptoassets and build awareness of the power of decentralized networks.
Finally, airdrops are great for users, who get crypto without having to buy it, mine it, or work for it. Buying crypto on an exchange can be difficult, time consuming, and expensive. Mining, even more so. In a Blockchain Airdrop, getting crypto is free and easy for everyone. Even better, since Blockchain users self-custody, they have immediate control, ownership and use of their newly-airdropped crypto. They can participate directly in the network without going through a cumbersome intermediary.
Our Guiding Principles articulate our thinking around asset selection, distribution methodology, economic rationale, and legal considerations. You can read more here or watch this short explainer video:
Developer? Network Creator? Want to learn more? Email us at [email protected]