Vitalik Buterin raises questions over the current token airdrop rules

Vitalik Buterin criticised the current crypto token airdrop rules and said that we should not distribute tokens to those who are ready to sell immediately.

Vitalik Buterin is a prominent crypto entrepreneur, known primarily as a co-founder of the Ethereum blockchain network. Before Ethereum, he was involved in other crypto projects, such as the crypto media website BITCOIN Magazine.

On August 28, 2024, Vitalik Buterin discussed the current crypto-airdrop token system and noted that crypto projects distribute tokens among random crypto traders and participants, who usually sell their tokens in the market. 

According to Vitalik, token distribution should focus on those who use or test the tokens for which they were developed, rather than selling them.

   -----Cryptonews AD----->>> 

Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE

  <<<-----Cryptonews AD-----  

 

Airdrops are a fascinating initial use case for ZK / blockchain-based identity / credential / attestation frameworks. The goals of an airdrop are:

(i) distribute to community members [and not randos who will all immediately sell]
(ii) reward contributions to the project
(iii) be…

— vitalik.eth (@VitalikButerin) August 28, 2024

Furthermore, Vitalik suggests that instead of just giving tokens away for free, projects can also offer discounted token sales. This approach allows people who prove a certain level of membership or contribution to buy tokens at a reduced price, promoting a more distributed supply and rewarding non-financial contributors. It ensures that buyers still have a stake in the project. He mentions that methods used for airdrops can also apply to these discounts. 

Additionally, Vitalik notes that subsidising savings rates for smaller accounts could be an alternative to Universal Basic Income (UBI), similar to Singapore’s CPF system.

A crypto X user commented that airdrops today often create hype, attract users and farmers, distribute a large portion to the team and insiders, and give only a small amount to the community. Vitalik Buterin acknowledged this as a harsh reality but suggested that the use of identity, credential, and attestation solutions, which have been developed over the past five years, could lead to fairer and more effective token distributions.

Right but we can actually use all of these identity/credential/attestation solutions that the identity geeks have been working on for the past 5 years in order to not do that, and have actually good token distributions instead.

— vitalik.eth (@VitalikButerin) August 28, 2024

Read also: Bitcoin price crashes below $58k level, analyst says if HODLers didn’t sell, BTC would be like $100k.

Vitalik Buterin raises questions over the current token airdrop rules

 

https://bitcoinik.com/vitalik-buterin-raises-questions-over-the-current-token-airdrop-rules/feed/

https://bitcoinik.com/vitalik-buterin-raises-questions-over-the-current-token-airdrop-rules/feed/