In 2017 the concept of ICO took off and along with it new techniques emerged to build communities. A blockchain application will remain useless if it is not actively used by a community. To create brand awareness, these blockchain start-ups have started to opt to distribute a portion of their created tokens to those who show interest in their project, latest method now being the SmartDrop.
This has resulted in the emergence of Crypto Airdrops, where ICO’s are essentially giving away free tokens. Just as getting tokens for free from hardforks, for example litecoin fork, a Crypto Airdrop also rewards the user with free tokens. Although it may be free in the monetary sense, it certainly is not free when time is taken into account. An Airdrop is simply rewarding users who perform various actions to get to know the project better.
Participating in these kind of Airdrops is not restricted to your field of interest or specialization. This is where Smartdrop comes in. A crypto smartdrop is an abstract notion which stipulates that those who are to receive the Airdrop should be those who can provide quality to your project.
Similar to how the commonly used social media investigate their users by storing sensitive information in the cookies and showing them ”relevant” advertisement, a smartdrop is where the recipients of the tokens play a major role to the decentralized blockchain application, Dapp.
What makes an Airdrop a Smartdrop?
As mentioned before, a smartdrop is more of an abstract idea in how to approach the Airdrop strategy. For example, let’s assume an ICO, named Blue Blockchain, has created a blockchain application designed to incorporate lightning-fast feeless microtransactions. In this scenario, Blue Blockchain may choose to distribute the Airdrop tokens to the holders of MIOTA coins (IOTA). The users of MIOTA are likely to be already familiar with feeless microtransactions. If these users get to receive the Airdrop, there is a bigger chance of active involvement in the social media. This is basically a selection in who gets to receive Airdrop tokens. Just as Volkswagen will not target Greenpeace activists, whereas Tesla might.
Recipient selection is not necessarily the only means to label an Airdrop as a smartdrop. Configuring an Airdrop to take place each time a milestone in the roadmap of an ICO is achieved is another technique to have the users discuss about the updates.
The active reader is aware of the implications when a token gets labeled as a security. To remain compliant, it is essential to do a KYC before distributing Airdrop tokens.
Recipient selection, milestone based distribution and compliance are all notions of a smartdrop.
Smartdrop is certainly not the only proposed new form of distributing tokens with the intention to build a community. Start-ups sometimes choose a blockchain different than Ethereum, giving rise to EOS Airdrops. When an Airdrop is claimed to be a smartdrop, the user can expect to be required to perform more specific tasks.
Majored in Applied Physics & Materials Science and Engineering.
Favourite Blockchain ideas: Medicine authentication (BlockVerify) & Voting platform (Agora)
Favourite Cryptocurrencies: Bitcoin, Stratis